Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.8% compared to a 7.4% return for the Russell 2500 Index. For the year 2022, the fund returned -19.0% compared to a -18.4% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Wedgewood Partners highlighted stocks like Trex Company, Inc. (NYSE:TREX) in the Q4 2022 investor letter. Headquartered in Winchester, Virginia, Trex Company, Inc. (NYSE:TREX) is a decking, railing, and outdoor living products and accessories manufacturer. On March 7, 2023, Trex Company, Inc. (NYSE:TREX) stock closed at $51.03 per share. One-month return of Trex Company, Inc. (NYSE:TREX) was -7.42%, and its shares lost 32.52% of their value over the last 52 weeks. Trex Company, Inc. (NYSE:TREX) has a market capitalization of $5.55 billion.
Wedgewood Partners made the following comment about Trex Company, Inc. (NYSE:TREX) in its Q4 2022 investor letter:
“Trex Company, Inc. (NYSE:TREX) detracted from performance while going through what is now a well-telegraphed correction in channel inventories. Similar to Pool, the market is now disproportionately focused on interest rates and their potential effects on end demand for replacement decking. While near-term declines in revenue look extremely painful compared to 2021, we expect 2023 revenues to still be much higher than 2019 levels, yet the stock is trading not far from where it was pre-Pandemic. The Company maintains dominant market share and is taking share from traditional wood decking, as Trex’s composite products have a lower total cost of ownership. Trex’s competitive positioning is still intact, and the Company should be able to compound at attractive growth rates now that channel inventories have normalized and contractor backlogs are still at healthy levels.”
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Trex Company, Inc. (NYSE:TREX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX) at the end of the fourth quarter which was 28 in the previous quarter.
We discussed Trex Company, Inc. (NYSE:TREX) in another article and shared the list of stocks to sell according to Motley Fool. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.