Osterweis Capital Management, an investment management firm, released its Q1 2026 investor update for its “Osterweis Opportunity Fund”. A copy of the letter can be downloaded here. The fund returned -3.78% in the quarter compared to -2.81% for the Russell 2000 Growth Index. The fund’s long-term returns stay positive, but recent geopolitical shocks and AI disruption concerns pressured quarterly results. Security selection boosted performance, whereas sector allocation was a significant drag. Although the firm’s investment approach remains consistent, it continues to seek innovative companies in growing markets. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Casella Waste Systems, Inc. (NASDAQ:CWST). Casella Waste Systems, Inc. (NASDAQ:CWST) is a vertically integrated solid waste services company that offers resource management expertise and services. On June 18, 2026, Casella Waste Systems, Inc. (NASDAQ:CWST) closed at $86.98 per share. One-month return of Casella Waste Systems, Inc. (NASDAQ:CWST) was -0.49%, and its shares lost 25.01% over the past 52 weeks. Casella Waste Systems, Inc. (NASDAQ:CWST) has a market capitalization of $5.53 billion.
Osterweis Opportunity Fund stated the following regarding Casella Waste Systems, Inc. (NASDAQ:CWST) in its Q1 2026 investor letter:
“Casella Waste Systems, Inc. (NASDAQ:CWST), a regional waste management company operating in the northeastern U.S., was our biggest detractor within Industrials. The stock underperformed primarily because it was overlooked by the market, which was more focused on AI infrastructure and defense stocks during the quarter. In addition, the newly appointed CEO laid out conservative guidance, which disappointed some of the fast-money investors. We continue to be confident in the company’s ability to compound revenue at a double-digit pace and grow operating profits even faster.”
Casella Waste Systems, Inc. (NASDAQ:CWST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge fund portfolios held Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the fourth quarter, up from 26 in the previous quarter. Casella Waste Systems, Inc.’s (NASDAQ:CWST) Q1 2026 revenue increased 9.6% year-over-year to $457.3 million. While we acknowledge the risk and potential of Casella Waste Systems, Inc. (NASDAQ:CWST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CASELLA WASTE SYSTEMS, INC. (NASDAQ:CWST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Casella Waste Systems, Inc. (NASDAQ:CWST) and shared Wasatch Long/Short Alpha Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
