Core Insights - Wasatch Global Investors reported a challenging Q4 2025 for its Small Cap Growth Strategy, with small-cap equities underperforming broader market indices due to investor caution and preference for larger stocks [1] - The Russell 2000® Growth Index gained 1.22% in Q4 2025, while the Wasatch strategy finished in negative territory, driven by stock-specific factors rather than macroeconomic issues [1] - For the full year 2025, the Russell 2000 Growth Index advanced 13.01%, contrasting with the strategy's loss, indicating earnings volatility and valuation compression despite improving fundamentals [1] Company Focus: Trex Company, Inc. - Trex Company, Inc. (NYSE:TREX) manufactures composite decking and railing products from recycled materials, benefiting from long-term demand for low-maintenance outdoor building solutions [2] - In the last month, Trex's stock returned -1.54%, with shares trading between $29.77 and $70.08 over the past 52 weeks, closing at approximately $42.65 on February 13, 2026, with a market capitalization of about $4.633 billion [2] - Trex's stock declined sharply in November following disappointing Q3 earnings and weak guidance for Q4, attributed to a softer housing market and reduced consumer spending on home improvement [3] - Despite current challenges, Trex is viewed as a high-quality business, with ongoing due diligence being conducted, and it holds a strong position in a largely duopolistic market [3]