Is Trex Company, Inc. (NYSE:TREX) going to take off soon? The best stock pickers are taking an optimistic view. The number of long hedge fund positions inched up by 6 lately.
To the average investor, there are a multitude of indicators investors can use to analyze the equity markets. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the market by a significant amount (see just how much).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the marketplace. As the old adage goes: there are a variety of reasons for an insider to get rid of shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if you know where to look (learn more here).
Now, we’re going to take a peek at the recent action surrounding Trex Company, Inc. (NYSE:TREX).
How are hedge funds trading Trex Company, Inc. (NYSE:TREX)?
At the end of the fourth quarter, a total of 15 of the hedge funds we track were bullish in this stock, a change of 67% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Trex Company, Inc. (NYSE:TREX). Royce & Associates has a $17 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $9 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other peers that are bullish include Malcolm Fairbairn’s Ascend Capital, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.
Now, key money managers were breaking ground themselves. Ascend Capital, managed by Malcolm Fairbairn, created the most valuable position in Trex Company, Inc. (NYSE:TREX). Ascend Capital had 7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $4 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Richard Driehaus’s Driehaus Capital, and Steven Cohen’s SAC Capital Advisors.
How are insiders trading Trex Company, Inc. (NYSE:TREX)?
Insider purchases made by high-level executives is most useful when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time frame, Trex Company, Inc. (NYSE:TREX) has experienced zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).
With the results shown by Insider Monkey’s time-tested strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Trex Company, Inc. (NYSE:TREX) is no exception.
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