Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund’s Investor Class fund ARTMX returned 2.35%, Advisor Class fund APDMX posted a return of 2.38%, and Institutional Class fund APHMX returned 2.40%, compared to a 6.54% return for the Russell Midcap Growth Index. Negative security selection within health care, information technology, and industrials led to the fund’s underperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Fund highlighted stocks like Trex Company, Inc. (NYSE:TREX), in the third quarter 2024 investor letter. Trex Company, Inc. (NYSE:TREX) manufactures and distributes composite decking, railing, and outdoor living products and accessories. The one-month return of Trex Company, Inc. (NYSE:TREX) was -4.03%, and its shares gained 15.96% of their value over the last 52 weeks. On October 15, 2024, Trex Company, Inc. (NYSE:TREX) stock closed at $65.26 per share with a market capitalization of $7.094 billion.
Artisan Mid Cap Fund stated the following regarding Trex Company, Inc. (NYSE:TREX) in its Q3 2024 investor letter:
“We ended our investment campaigns in Edwards Lifesciences, Jabil and Trex Company, Inc. (NYSE:TREX) during the quarter. Trex manufactures non-wood decking products. Our view has been that Trex would be able to withstand the cyclical slowdown in housing-related spending as it has been gaining market share thanks to greater consumer awareness of composite decking’s low-to-no maintenance features and new lower priced options to broaden its potential customer base. Unfortunately, recent earnings results called this thesis into question as the company has been dealing with elevated inventory levels and disappointing sales in its lower priced options. Given these challenges, we sold our position.”
A home exterior with a deck and railing crafted with products from the company.
Trex Company, Inc. (NYSE:TREX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX) at the end of the second quarter which was 37 in the previous quarter. Trex Company, Inc. (NYSE:TREX) reported net sales of $376 million in the second quarter, up 6% from Q2 2023. While we acknowledge the potential of Trex Company, Inc. (NYSE:TREX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Trex Company, Inc. (NYSE:TREX) and shared Conestoga Capital Advisors’ views on the company i the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 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.