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Trex Company, Inc.

TREX position long John Hempton, Bronte Capital

Thesis

Trex, which makes plastic decking, has impressive financial metrics with a return on assets of 27% and return on equity of 47%, both of which are increasing, indicating strong business performance.

Did it work?

inconclusive confidence: low

The pitch is a long thesis based on Trex's strong and improving financial metrics (ROA 27%, ROE 47%), but no price performance data is available and no time horizon or specific catalyst is stated. Without price data or evidence that the thesis events played out or were invalidated, no verdict on success can be reached.