Core Insights - The Mairs & Power Small Cap Fund reported a return of 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which increased by 10.39% [1] - The market remains concentrated in 2025, with a few dominant mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Highlights - Trex Company, Inc. (NYSE:TREX) is a manufacturer of composite decking and outdoor living products, with a one-month return of 9.53% but a significant decline of 54.84% over the last 52 weeks [2] - As of December 10, 2025, Trex's stock closed at $35.39 per share, with a market capitalization of $3.796 billion [2] - The Mairs & Power Small Cap Fund initiated a position in Trex during the third quarter of 2025, viewing its valuation as attractive amid concerns about a slowing housing industry [3] Investment Sentiment - Trex Company, Inc. was held by 41 hedge fund portfolios at the end of the third quarter, indicating stable interest among institutional investors [4] - Despite Trex's potential, the sentiment suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Trex [4]

Company Overview - Trex Company serves residential homeowners, commercial property developers, and institutional clients in the United States, operating in both residential and commercial construction segments [1] - The company generates revenue primarily through manufacturing and distributing outdoor building materials to wholesale distributors, retail lumber dealers, and major home improvement retailers [1][6] - Trex offers a range of composite decking, railing, fencing, and outdoor living products, including branded systems such as Trex Transcend, Trex Select, and Trex Enhance [2] Recent Developments - On November 14, 2025, Gandhi Prithvi, the Chief Financial Officer of Trex, acquired 15,000 shares worth nearly $480,000, marking a significant investment during a period of stock price decline [6][9] - Trex shares have experienced a decline of 54.16% over the twelve months leading up to November 14, 2025, and are down 55% year to date [3][6] - The acquisition price was $31.92 per share, closely aligned with the closing price of $31.77 on the same day [4] Ownership and Market Activity - Following the purchase, direct holdings increased to 30,664 shares, representing approximately $974,195.28 in market value, which is 0.03% of outstanding shares, indicating a doubled stake compared to pre-transaction levels [4] - This purchase is noted as the largest reported transaction by Gandhi Prithvi, with no prior open-market buys or sells of this magnitude [5] Market Context - The housing industry is currently facing challenges due to high interest rates and a mismatch between housing supply and demand, contributing to a struggling market [9] - Trex's disappointing third-quarter results led to a significant drop in share prices, reaching a five-year low, which Mr. Gandhi capitalized on to increase his stock ownership [9][10] - The company has shown confidence in its future by announcing a $50 million share repurchase program [10]

Core Insights - The Alger Spectra Fund's third-quarter 2025 investor letter indicates a strong performance in U.S. equity markets, with the S&P 500 Index rising by 8.12% due to improving economic conditions, solid corporate earnings, and expectations for monetary easing [1] - Class A shares of the Alger Spectra Fund outperformed the Russell 3000 Growth Index during the same period [1] Company Overview: James Hardie Industries plc - James Hardie Industries plc (NYSE:JHX) is a global leader in exterior building materials, particularly known for fiber-cement siding and related products across North America, APAC, and Europe [3] - The company offers a diverse portfolio that includes siding, decking, railing, and pergolas [3] Recent Performance and Market Sentiment - James Hardie Industries plc experienced a one-month return of -22.36% and a 52-week loss of 45.27%, with shares closing at $17.40 on November 10, 2025, and a market capitalization of $10.079 billion [2] - The decline in shares was attributed to disappointing fiscal first-quarter results and a cautious outlook from management, highlighting softer housing demand and elevated channel inventories [3] Hedge Fund Interest - As of the end of the second quarter, 32 hedge fund portfolios held shares of James Hardie Industries plc, an increase from 12 in the previous quarter [4] - Despite the potential of James Hardie Industries plc as an investment, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]