ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge SMID Cap Growth Strategy outperformed its Russell 2500 Growth Index benchmark. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the industrials sector the leading contributor, while the consumer discretionary and IT sectors were the primary detractors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
ClearBridge Investments SMID Cap Growth Strategy, in its Q4 2021 investor letter, mentioned Trex Company, Inc. (NYSE:TREX) and discussed its stance on the firm. Founded in 1996, Trex Company, Inc. (NYSE:TREX) is a Winchester, Virginia-based outdoor items manufacturing company with a $8.4 billion market capitalization, and is currently spearheaded by its CEO, James E. Cline. Trex Company, Inc. (NYSE:TREX) delivered a -45.48% return since the beginning of the year, while its 12-month returns are down by -18.16%. The stock closed at $(recent close) per share on March 28, 2022.
Here is what ClearBridge Investments SMID Cap Growth Strategy has to say about Trex Company, Inc. (NYSE:TREX) in its Q4 2021 investor letter:
“The ClearBridge SMID Cap Growth Strategy continued to deliver strong absolute and relative returns as our focus on de-risking investments prior to purchase and managing position sizes has made a difference through recent market turbulence. Trex, a manufacturer of outdoor decking made from extruded sawdust and recycled plastics, is the largest position in the Strategy but the only stock with a weighting of over 3% in a diversified growth portfolio of about 80 names. Trex has successfully convinced consumers about the virtue of composite decking (durability, environmental impact) versus virgin lumber construction. The stock was boosted recently by exceptionally strong third quarter results that handily topped expectations on a variety of metrics as well as strong guidance. Substantial capacity additions have been adroitly deployed and absorbed, and the company is planning for its third U.S. manufacturing site.”
Our calculations show that Trex Company, Inc. (NYSE:TREX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Trex Company, Inc. (NYSE:TREX) was in 28 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. Trex Company, Inc. (NYSE:TREX) delivered a -45.36% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Trex Company, Inc. (NYSE:TREX) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
