Baron Small Cap Fund Buys Casella Waste at $89.91, Citing Temporary Pressure

1 articles · Updated · Yahoo Finance · Aug 19

Baron Small Cap Fund said in its Q2 2026 investor letter that it bought Casella Waste Systems shares, calling the waste-services company an attractive long-term entry point.
Casella's stock closed at $89.91 on Aug. 18, was down 0.58% over one month and 11.07% over 52 weeks, moves Baron said reflected temporary issues rather than lasting damage.
Baron described Casella as a well-entrenched market leader with high barriers to entry, adding that its decade-plus experience owning Waste Connections supports the investment case.
The purchase came in a quarter when the fund returned 12.57%, lagging the Russell 2000 Growth Index's 25.71% gain as market gains were concentrated in AI, semiconductor and other high-beta stocks.
Casella had a $5.72 billion market value as of Aug. 18, and 28 hedge fund portfolios held the stock at the end of Q1, unchanged from the prior quarter.