The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. US markets posted mixed results in Q2. The portfolio fell 5.7% (5.9%, net) compared to a 4.3% decrease for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to underperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company SMID Cap Strategy highlighted stocks like Trex Company, Inc. (NYSE:TREX), in the second 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 -25.36%, and its shares lost 19.07% of their value over the last 52 weeks. On August 9, 2024, Trex Company, Inc. (NYSE:TREX) stock closed at $120.15 per share with a market capitalization of $6.599 billion.
The London Company SMID Cap Strategy stated the following regarding Trex Company, Inc. (NYSE:TREX) in its Q2 2024 investor letter:
“Trex Company, Inc. (NYSE:TREX) – TREX underperformed in 2Q despite continued solid execution, as sentiment turned cautious on building products and decking specifically. TREX had a very strong run coming off 2022 lows and outperformed by a wide margin in Q1 of this year. Our view of the long-term prospects for the business is unchanged, but we trimmed the position in 1Q and 2Q of this year due to valuation concerns.”
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, 37 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX) at the end of the first quarter which was 32 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 ClearBridge Sustainability Leaders Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
