Wasatch Global Investors, an investment management firm, released its “Wasatch Core Growth Fund” fourth quarter 2023 investor letter. The same can be downloaded here. The market witnessed an escalation of the trend in which the robust operating results of high-quality companies were mirrored in the stock prices during the fourth quarter of 2023. In the fourth quarter, the fund’s Investor Class increased 17.15% outperforming the benchmark Russell 2000 Growth Index, which rose 12.75%, while the broader Russell 2000 Index increased 14.03%. During the year the fund appreciated 33.43% well ahead of the indexes’ returns of 18.66% and 16.93%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Core Growth Fund featured stocks like Trex Company, Inc. (NYSE:TREX) in the fourth quarter 2023 investor letter. Headquartered in Winchester, Virginia, Trex Company, Inc. (NYSE:TREX) is a decking, railing, and outdoor living products and accessories manufacturer. On March 14, 2024, Trex Company, Inc. (NYSE:TREX) stock closed at $94.84 per share. One-month return of Trex Company, Inc. (NYSE:TREX) was 4.38%, and its shares gained 103.21% of their value over the last 52 weeks. Trex Company, Inc. (NYSE:TREX) has a market capitalization of $10.302 billion.
Wasatch Core Growth Fund stated the following regarding Trex Company, Inc. (NYSE:TREX) in its fourth quarter 2023 investor letter:
“The fourth quarter’s top contributor was Trex Company, Inc. (NYSE:TREX). The company manufactures high-performance composite (non-wood) decking and accessories. Trex was a laggard in 2022 as fears of rising interest rates disproportionately impacted the shares of housing-related companies. We maintained our conviction in the stock when it traded down, believing Trex would continue to take share within the composite-decking market and from traditional suppliers of wood products, which have shorter lifespans and require more upkeep than composites. The stock rebounded in 2023 due to several factors. First, Trex bought back stock in 2022, so fewer shares are now outstanding. Second, product inventories have been worked down and are no longer excessive. Third, the company’s revenues were up approximately 60% in the most recently reported quarter and margins have improved going into 2024, which looks to be a banner year as real estate regains momentum. Fourth, Trex is the leading brand for the professional contractor/builder segment—and this is the most valuable segment of the market.”
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Trex Company, Inc. (NYSE:TREX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Trex Company, Inc. (NYSE:TREX) was held by 32 hedge fund portfolios, compared to 32 in the previous quarter, according to our database.
We discussed Trex Company, Inc. (NYSE:TREX) in another article and shared Polen U.S. SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
