Polen Capital, an investment management firm, published its “Polen US SMID Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -23.81% gross and -24.02% net of fees, respectively, underperforming the Russell 2500 Growth Index’s -12.30% return. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Polen US SMID Company Growth Fund mentioned Trex Company, Inc. (NYSE:TREX) and explained its insights for the company. Founded in YEAR, Trex Company, Inc. (NYSE:TREX) is a Winchester, Virginia-based boarding company with a $7.3 billion market capitalization. Trex Company, Inc. (NYSE:TREX) delivered a -52.10% return since the beginning of the year, while its 12-month returns are down by -33.12%. The stock closed at $64.91 per share on June 02, 2022.
Here is what Polen US SMID Company Growth Fund has to say about Trex Company, Inc. (NYSE:TREX) in its Q1 2022 investor letter:
“Trex is the world’s largest wood-alternative decking and railing manufacturer and has nearly 30 years of product experience. Despite continued robust results, the company’s stock price fell some 50% from its December 2021 high. We took advantage of the pullback to add to our position in Trex. We have received some questions about the impact of rising interest rates on the company’s business model. In the past, we have observed that rising interest rates and higher home values often favor consumers staying longer in their homes and continuing to spend on repairs and remodels. We would add that a more significant driver here is the long-term shift from wood to composites, which seems to be accelerating. This is consistent with the changing preferences we are observing around environmental sustainability.”
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Our calculations show that Trex Company, Inc. (NYSE:TREX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Trex Company, Inc. (NYSE:TREX) was in 38 hedge fund portfolios at the end of the first quarter of 2022, compared to 28 funds in the previous quarter. Trex Company, Inc. (NYSE:TREX) delivered a -13.40% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on Trex Company, Inc. (NYSE:TREX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
