Important points
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Kinetic Partners sold 1,059,900 Trex shares; The net position change before the sale was $57.6 million.
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The transaction represents a 2.8% shift in reportable AUM from 13F.
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After-hours Trex share of Kinetic: zero shares, value $0.
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The position already accounted for 3.2% of Kinetic Partners' AUM in the previous quarter.
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On November 14, 2025, Kinetic Partners Management, LP announced in an SEC filing that it sold its entire Trex position, a move valued at approximately $57.6 million.
What happened
According to a filing with the Securities and Exchange Commission dated November 14, 2025, Kinetic Partners Management sold all 1,059,900 shares it held Trex (NYSE:TREX) in the third quarter.
The estimated value of the trade was $57.6 million based on the quarterly average price.
Following this transaction, no Trex shares will remain in the fund's portfolio.
What else you should know
Kinetic Partners sold Trex; The position now represents 0% of reportable AUM.
The position was 3.2% of the fund's AUM in the previous quarter.
Top holdings after filing:
- Amazon (NASDAQ:AMZN): $173.6 million (8.4% of AUM)
- Nvidia (NASDAQ:NVDA): $142.8 million (6.9% of AUM)
- Sea Limited (NYSE:SE): $109.4 million (5.3% of AUM)
- Taiwan semiconductor manufacturing (NYSE:TSM): $101.3 million (4.9% of AUM)
- Joinery technology (NYSE:CRS): $94.9 million (4.6% of AUM)
As of November 14, 2025, Trex stock was priced at $31.77, down 55% year-over-year and underperforming the S&P 500 by 69 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close November 14, 2025) | $31.77 |
| Market capitalization | $3.41 billion |
| Sales (TTM) | $1.18 billion |
| Net Income (TTM) | $197.9 million |
Corporate snapshot
Trex:
- Manufactures and sells composite decking, railing systems, fences and home accessories, with core products marketed under the Trex Transcend, Select and Enhance brands.
- Generates revenue primarily through wholesale distribution, retail lumber dealers and partnerships with large home improvement retailers, utilizing both direct sales and licensing agreements.
- Sells to customers including homeowners, commercial real estate developers and contractors throughout the United States who are looking for long-lasting, low-maintenance exterior building solutions.
Trex is a leading U.S. manufacturer of wood alternatives for decking and outdoor living products, serving both the residential and commercial markets.
The company's strategy focuses on composite innovation, broad distribution and brand licensing to meet the demand for sustainable, low-maintenance outdoor solutions.
With a strong presence in key retail channels and a diverse product portfolio, Trex maintains a competitive advantage through product durability, brand recognition and an extensive distribution network.
Stupid attitude
It appears that Kinetic made a quick profit on Trex when it bought the stock at around $56 in the second quarter of 2025 and sold it in the third quarter when the stock was trading in the $60 range.
While such short-term trading isn't the dumbest investment strategy ever, it certainly paid off, as Trex reported disappointing earnings in November, causing the company's stock to plummet to its current level in the $30s.
Long story short: Kinetic timed things well – but this is a challenging task that needs to be tackled consistently.
From a Foolish perspective, I think Trex is an intriguing investment option today, as its P/E ratio of 17 is at its lowest level in the last decade.
As competition continues to intensify and the home repair and remodeling market remains weak, I believe Trex's environmentally friendly products, best-in-class pricing and leadership advantage in the composite decking niche will help the company return to its market-leading path.
It may take several quarters, perhaps even years, for Trex to get back up to speed since it is a cyclical stock. Still, I'm glad it's one of my core holdings, and I'll continue to buy shares in the company as the company buys back its own undervalued shares.
glossary
13F reportable AUM: Assets under management required to be disclosed by institutional investment managers in quarterly SEC Form 13F filings.
Position: The amount of a particular security or asset held by an investor or fund.
Mission: The ownership interest or interest of a fund or investor in a company.
Trailing Twelve Months (TTM): The 12 months ending with the most recent quarterly report.
Wholesale distribution: Selling products in bulk to retailers or wholesalers rather than directly to consumers.
License agreements: Contracts that allow one company to use another's brand, technology, or products for a fee.
Composite decking: Outdoor flooring made from a mix of wood fibers and plastics, designed as an alternative to traditional wood.
Brand awareness: The extent to which consumers can identify a brand based on its attributes or logo.
Sales network: The system of intermediaries and channels that a company uses to deliver products to customers.
Fund portfolio: The collection of investments held by a fund or investment manager.
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Josh Kohn-Lindquist has held positions at Nvidia, Sea Limited and Trex. The Motley Fool has positions in and recommends Amazon, Nvidia, Sea Limited, Taiwan Semiconductor Manufacturing, and Trex. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.