Key Points
Kinetic Partners sold 1,059,900 shares of Trex; net position change was $57.6 million before the sale.
The transaction represents a 2.8% shift in 13F reportable AUM.
Kinetic's post-trade Trex stake: zero shares, $0 value.
The position previously accounted for 3.2% of Kinetic Partners' AUM in the prior quarter.
On Nov. 14, 2025, Kinetic Partners Management, LP, disclosed in an SEC filing that it sold out 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 Nov. 14, 2025, Kinetic Partners Management sold all 1,059,900 shares it held in Trex(NYSE:TREX) during the third quarter.
The estimated value of the trade was $57.6 million based on the quarterly average price.
No shares of Trex remain in the fund's portfolio following this transaction.
What else to know
Kinetic Partners sold out of Trex; the position now represents 0% of reportable AUM.
The position was previously 3.2% of the fund's AUM as of the prior quarter.
Top holdings after the 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)
- Carpenter Technology (NYSE:CRS): $94.9 million (4.6% of AUM)
As of Nov. 14, 2025, Trex shares were priced at $31.77, down 55% over the prior year, 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 |
| Revenue (TTM) | $1.18 billion |
| Net income (TTM) | $197.9 million |
Company Snapshot
Trex:
- Manufactures and distributes composite decking, railing systems, fencing, and outdoor living 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, leveraging both direct sales and licensing agreements.
- Sells to customers such as residential homeowners, commercial property developers, and contractors across the United States, seeking durable, low-maintenance outdoor building solutions.
Trex is a leading U.S. manufacturer of wood-alternative decking and outdoor living products, serving both residential and commercial markets.
The company's strategy centers on innovation in composite materials, broad distribution, and brand licensing to capture demand for sustainable, low-maintenance exterior solutions.
With a strong presence in major retail channels and a diverse product portfolio, Trex maintains a competitive edge through product durability, brand recognition, and an extensive distribution network.
Foolish take
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 Q3, when the stock was trading in the $60s.
Although short-term trading like this isn't the most Foolish investing strategy out there, it certainly paid dividends as Trex went on to report disappointing earnings in November, which saw the company's stock plummet to its current level in the $30s.
Long story short, Kinetic timed things well -- but that is a challenging task to achieve consistently.
From a Foolish perspective, I think Trex is a fascinating investment option today with its P/E ratio of 17 at its lowest level in the last decade.
While competition continues to intensify and the housing repair and remodeling market remains weak, I believe Trex's eco-friendly products, premium pricing, and leadership advantage in its composite decking niche will help it return to its market-beating ways.
It may take multiple quarters, maybe even years, for Trex to start firing on all cylinders again, as it is a cyclical stock. That said, I'm pleased that it is one of my core holdings, and I will continue to buy shares of the company as it repurchases its own undervalued stock.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Trailing twelve months (TTM): The 12 months ending with the most recent quarterly report.
Wholesale distribution: Selling products in large quantities to retailers or distributors, rather than directly to consumers.
Licensing agreements: Contracts allowing one company to use another's brand, technology, or products for a fee.
Composite decking: Outdoor flooring material made from a blend of wood fibers and plastics, designed as an alternative to traditional wood.
Brand recognition: The extent to which consumers can identify a brand by its attributes or logo.
Distribution network: The system of intermediaries and channels a company uses to deliver products to customers.
Fund's portfolio: The collection of investments held by a fund or investment manager.
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Josh Kohn-Lindquist has positions in 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.
