Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the Small Cap Composite outperformed the Russell 2000 Growth Index benchmark and returned 21.93% versus the benchmark’s return of 18.66%. The strategy rose 10.97% net-of-fees in the fourth quarter compared to the 12.75% return for the index. As anticipated, the strategy produced the majority of its outperformance during the down-market times. In general, 2023 had mixed results for better-caliber businesses. Sector allocations contributed more to Conestoga’s relative performance in the Small Cap Composite than stock selection effects did. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Small Cap Strategy featured stocks such as Trex Company, Inc. (NYSE:TREX) in the fourth quarter 2023 investor letter. Headquartered in Winchester, Virginia, Trex Company, Inc. (NYSE:TREX) is a decking, railing, and outdoor living products and accessories manufacturer. On February 16, 2024, Trex Company, Inc. (NYSE:TREX) stock closed at $90.86 per share. One-month return of Trex Company, Inc. (NYSE:TREX) was 10.40%, and its shares gained 68.92% of their value over the last 52 weeks. Trex Company, Inc. (NYSE:TREX) has a market capitalization of $9.867 billion.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Trex Company, Inc. (NYSE:TREX) in its fourth quarter 2023 investor letter:
“Trex Company, Inc. (NYSE:TREX): TREX is the market leader in composite decking and railing. The stock rallied during the quarter after solidly exceeding street expectations on revenue and earnings for its 3Q results. TREX is benefiting from some exciting new products (both decking and railing) recently introduced as well as its continued ability to take share from wood.”
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 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Trex Company, Inc. (NYSE:TREX) was held by 32 hedge fund portfolios, compared to 32 in the previous quarter, according to our database.
We discussed Trex Company, Inc. (NYSE:TREX) in another article and shared The London Company SMID Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
