Should You Hold Waste Connections (WCN) for the Long Term?

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The second quarter of 2025 endured significant government policy changes and geopolitical events, which resulted in volatility yet ended with robust performance for equity markets. The Fund’s Institutional Class shares posted an absolute positive return of 11.24% in the quarter, but underperformed the benchmark, the Russell 1000 Growth Index, which returned 17.84%. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, the Macquarie Large Cap Growth Fund highlighted stocks such as Waste Connections, Inc. (NYSE:WCN). Waste Connections, Inc. (NYSE:WCN) offers non-hazardous waste collection, transfer, disposal, and resource recovery services. The one-month return of Waste Connections, Inc. (NYSE:WCN) was -4.51%, and its shares lost 3.60% of their value over the last 52 weeks. On September 19, 2025, Waste Connections, Inc. (NYSE:WCN) stock closed at $173.97 per share, with a market capitalization of $44.73 billion.

Macquarie Large Cap Growth Fund stated the following regarding Waste Connections, Inc. (NYSE:WCN) in its second quarter 2025 investor letter:

"At a stock level, the largest detractors were UnitedHealth Group Inc., an underweight to Broadcom Inc., and our position in Waste Connections, Inc. (NYSE:WCN). For Waste Connections, there was no specific event or change in its fundamentals. The stock’s performance lagged the benchmark return as stable companies fell out of favor. Nevertheless, we remain confident in the long-term fundamentals of this business."

Waste Connections, Inc. (NYSE:WCN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Waste Connections, Inc. (NYSE:WCN) at the end of the second quarter, up from 41 in the previous quarter.  While we acknowledge the potential of Waste Connections, Inc. (NYSE:WCN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Waste Connections, Inc. (NYSE:WCN) and shared the list of best waste management stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.