Do Hedge Funds Love Trex Company, Inc. (TREX)?

Consequently, key money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, created the biggest position in Trex Company, Inc. (NYSE:TREX). Millennium Management had $45.2 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also initiated an $0.6 million position during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, John Overdeck and David Siegel’s Two Sigma Advisors, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Trex Company, Inc. (NYSE:TREX) but similarly valued. These stocks are Amkor Technology, Inc. (NASDAQ:AMKR), Opus Bank (NASDAQ:OPB), Envestnet Inc (NYSE:ENV), and Seacor Holdings, Inc. (NYSE:CKH). All of these stocks’ market caps are closest to TREX’s market cap.

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $219 million. That figure was $105 million in TREX’s case. Amkor Technology, Inc. (NASDAQ:AMKR) is the most popular stock in this table. On the other hand Seacor Holdings, Inc. (NYSE:CKH) is the least popular one with only 12 bullish hedge fund positions. Trex Company, Inc. (NYSE:TREX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AMKR might be a better candidate to consider a long position.