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Jensen offers two mutual funds to a variety of investors including financial advisors, institutions, retirement plans and individuals.

Jensen offers customized asset management services for a diverse client base including foundations, endowments, public plans, family offices and retirement plans. At Jensen Investment Management, our pursuit of quality defines us. We bring clients an unwavering dedication to a consistent investment process while striving to provide exceptional client service. The strength of our investment philosophy is built on a long-term perspective and a commitment to investing in quality businesses. We believe these quality companies possess sustainable competitive advantages, creating value as profitable businesses that can, over time, provide attractive returns with less risk than the overall market.

Jensen offers both a quality growth and quality value strategy derived from a singular investable universe of companies—The Jensen Quality Universe.

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We provide separately managed accounts for institutions and private clients, and mutual funds for institutions, advisors and individual investors. Jensen Funds Jensen offers two mutual funds to a variety of investors including financial advisors, institutions, retirement plans and individuals. The portfolio return is adjusted for the addition of funds and the withdrawal of funds to the portfolio, and is time-weighted according to the number of months that the funds were in the portfolio.

Below is the formula for calculating the portfolio return for 1 year:.

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Realized gains or losses are gains or losses actualized by the selling of the securities, whereas unrealized gains or losses are securities that are still owned but are marked to market to determine the portfolio's return. There are several ways of comparing portfolio returns with each other and with the market in general.

A simple comparison is to simply compare their returns. However, returns by themselves do not account for the risk taken. If 2 portfolios have the same return, but one has lower risk, then that would be the preferable, more efficient portfolio. There are 3 common ratios that measure a portfolio's risk-return tradeoff: Sharpe's ratio, Treynor's ratio, and Jensen's Alpha.

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The Sharpe ratio aka Sharpe's measure , developed by William F. Sharpe , is the ratio of a portfolio's total return minus the risk-free rate divided by the standard deviation of the portfolio, which is a measure of its risk.

The Sharpe ratio is simply the risk premium per unit of risk, which is quantified by the standard deviation of the portfolio. The risk-free rate is subtracted from the portfolio return because a risk-free asset, often exemplified by the T-bill, has no risk premium since the return of a risk-free asset is certain.

Therefore, if a portfolio's return is equal to or less than the risk-free rate, then it makes no sense to invest in the risky assets. Hence, the Sharpe ratio measures the performance of the portfolio compared to the risk taken—the higher the Sharpe ratio, the better the performance and the greater the profits for taking on additional risk.

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While the Sharpe ratio measures the risk premium of the portfolio over the portfolio risk, or its standard deviation, Treynor's ratio, popularized by Jack L. Treynor, compares the portfolio risk premium to the systematic risk of the portfolio as measured by its beta.

Note that since the beta of the general market is defined to be 1, the Treynor Ratio of the market equals its return minus the risk-free rate. The Treynor ratio measures the return per unit risk: it is higher with either higher portfolio returns or lower portfolio betas. Note that here we used whole numbers instead of percentages for the return and risk-free rate because it simplifies the math and because it makes no difference when comparing portfolios if the same method is used consistently.

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Also note that, in Case 2, the same return was achieved with lower risk, so that, therefore, would be a more desirable portfolio. Alpha is a coefficient that is proportional to the excess return of a portfolio over its required return, or its expected return, for its expected risk as measured by its beta. Hence, alpha is determined by the fundamental values of the companies in the portfolio in contrast to beta, which measures the portfolio's return due to its volatility. Jensen's alpha aka Jensen index , developed by Michael C. Jensen, uses the capital asset pricing model CAPM to determine the amount of the return that is firm-specific over that which is due to market volatility as measured by the firm's beta in relation to the market beta.

Jensen's alpha can be positive, negative, or zero.