The Wasatch Long/Short Alpha Fund, managed by Wasatch Global Advisors, has recently published its Q1 2026 investor letter, which is available to download here. A shift in investor sentiment led to a market correction and increased volatility in U.S. small- and mid-cap stocks during the first quarter. Despite this, enthusiasm for AI continued to support companies involved in infrastructure development. The situation intensified in the quarter due to the conflict in Iran, causing investors to consider the potential for rising oil prices and their wider implications on the global economy. In this context, the Russell 2500 Index returned 2.04% in the quarter, while the Wasatch Long/Short Alpha Fund—Investor Class surpassed this performance with a rise of 4.16%, supported by the outperformance of its short positions. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Wasatch Long/Short Alpha Fund highlighted stocks like 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 2, 2026, Casella Waste Systems, Inc. (NASDAQ:CWST) closed at $83.00 per share. One-month return of Casella Waste Systems, Inc. (NASDAQ:CWST) was -5.28%, and its shares lost 29.12% over the past 52 weeks. Casella Waste Systems, Inc. (NASDAQ:CWST) has a market capitalization of $5.28 billion.
Wasatch Long/Short Alpha Fund stated the following regarding Casella Waste Systems, Inc. (NASDAQ:CWST) in its Q1 2026 investor letter:
“Casella Waste Systems, Inc. (NASDAQ:CWST) also detracted. Casella is a regional solid waste, recycling and resource management firm in the U.S. Earnings per share growth was a little ahead of expectations in Casella’s most recently reported financial results. But profitability declined, which might have weighed on the stock. Although Casella’s stock price declined, we continue to like the business and the management team, which has a long history of successfully integrating acquisitions.”
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 Alger Weatherbie Specialized Growth 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
