Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Trex Company, Inc. (NYSE:TREX), in the first quarter 2024 investor letter. Trex Company, Inc. (NYSE:TREX), with a market capitalization of $9.522 billion (intraday), manufactures and distributes composite decking, railing, and outdoor living products and accessories. One-month return of Trex Company, Inc. (NYSE:TREX) was -2.85%, and its shares gained 61.65% of their value over the last 52 weeks. On May 20, 2024, Trex Company, Inc. (NYSE:TREX) stock closed at $87.60 per share.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Trex Company, Inc. (NYSE:TREX) in its first quarter 2024 investor letter:
“Trex Company, Inc. (NYSE:TREX): TREX, based in Winchester VA, is the market leader in composite decking and railing. The stock rallied during the quarter as TREX solidly exceeded street expectations on revenue growth and earnings with channel inventories being very lean. Guidance for Q1 2024 was well above expectations as TREX benefitted from several exciting new product introductions, both on the decking and railings sides of the business.”
A home exterior with a deck and railing crafted with products from the company.
Trex Company, Inc.’s (NYSE:TREX) trailing 12 months revenue is $1.23 billion. Year over year quarterly revenue growth rate of the company is 56.50%, and year over year quarterly earnings growth rate is 116.60%. According to Q1 2024 earnings call the sales of Trex Company, Inc. (NYSE:TREX) exceeded the guidance range.
Trex Company, Inc. (NYSE:TREX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX) at the end of the fourth quarter which was 32 in the previous quarter.
In another article, we discussed Trex Company, Inc. (NYSE:TREX) and shared Wasatch Global Investors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
