Wasatch Global Investors, an asset management firm, published its “Small Cap Growth Strategy” investor letter for Q4 2025. A copy of the letter can be found downloaded here. The Wasatch Small Cap Growth Strategy experienced a challenging fourth quarter as small-cap stocks lagged broader market indices, reflecting investor caution and a continued preference for larger, more liquid stocks. During the period, the Russell 2000® Growth Index gained 1.22%, while the strategy finished the quarter in negative territory, with performance driven by stock-specific factors rather than macroeconomic tensions. The results contrasted with strength in select areas of the small-cap market, as biotech emerged as one of the strongest segments, with the biotech component of the Russell 2000® Growth Index rising nearly 27%. For calendar year 2025, the Russell 2000 Growth Index advanced 13.01% while the strategy posted losses, highlighting the impact of earnings volatility and valuation compression across several holdings despite management citing improving fundamentals and easing financial conditions as potential longer-term supports. Also, check out the Fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Wasatch Global Investors highlighted stocks like Trex Company, Inc. (NYSE:TREX). Trex Company, Inc. (NYSE:TREX) manufactures composite decking and railing products made from recycled materials, benefiting from long-term demand for low-maintenance outdoor building solutions. Trex Company, Inc. (NYSE:TREX) monthly performance was -1.54% while its shares traded between $29.77 and $70.08 over the past 52 weeks. On February 13, 2026, shares of Trex Company, Inc. (NYSE:TREX) closed at approximately $42.65 per share, with a market capitalization of approximately $4.633 billion.
Wasatch Global Investors stated the following regarding Trex Company, Inc. (NYSE:TREX) in its Q4 2025 investor letter:
“Trex Co., Inc. (NYSE:TREX) It also detracted from value. Trex manufactures high-performance, low-maintenance composite decking, railing and related outdoor living products. The stock fell sharply in November after the company reported third-quarter earnings that fell short of market expectations. Additionally, management offered disappointing guidance for the fourth quarter, citing a weaker housing market and lower consumer spending on home improvements as reasons. While the company faces some current challenges, we still view Trex as a high-quality company. “We are doing more due diligence on the company, but we still like its position as the largest company in a market that is largely a duopoly.”
