2026 Stock Picks and Portfolio Strategies: Insights from Nine Canadian Fund Managers
The Investing Landscape: A Year of Surprises and Steady Gains
2025 was a year filled with unexpected twists, from fluctuating tariffs to a U.S. President advocating for a 51st state. Yet, amidst this chaos, index investors enjoyed solid returns. The S&P/TSX Composite Index soared nearly 32%, while the S&P 500 Index climbed 18%. But here's where it gets controversial: could active fund managers outperform in such a challenging environment? And this is the part most people miss: nearly half of our featured fund managers did just that, with their 2025 picks outpacing the major indexes.
As we delve into their 2026 predictions and reflect on past recommendations, we uncover valuable insights. This article explores their top stock picks, portfolio advice, and the strategies they believe will navigate the evolving market landscape.
Christine Poole, Davis Rea: Focusing on Controllables
Poole emphasizes investing in financially robust, industry-leading companies across diverse sectors, trading at reasonable valuations. Her 2025 pick, WSP Global, underperformed due to AI-related concerns and M&A uncertainty. However, she remains confident in its long-term potential. For 2026, she selects Canadian National Railway, citing improving operating metrics, expanding profit margins, and an appealing dividend yield.
Kim Shannon, Sionna Investment Managers: The Defensive Value Advantage
Shannon advocates for defensive value investing, which has outperformed the S&P/TSX Composite over the past five years. She highlights Methanex Corp., a methanol producer trading at a bargain valuation, as her top pick. With strong operating utilization and a focus on debt reduction, Shannon believes Methanex has the potential to double in value.
Craig Jerusalim, CIBC Asset Management: Quality Over Momentum
Jerusalim stresses the importance of understanding earnings sustainability and cash flows. His 2025 pick, DRI Healthcare Trust, outperformed the market. For 2026, he favors Trisura Group, a specialty insurer with robust growth, high returns on equity, and a compelling valuation.
Stan Wong, Scotia Wealth Management: Discipline in Volatile Times
Wong recommends emphasizing high-quality companies with strong balance sheets and durable earnings growth. His top pick, Taiwan Semiconductor Manufacturing Co., is a key player in the AI and advanced computing space, poised to benefit from surging demand for advanced chips.
Ken O’Kennedy, Dixon Mitchell Investment Counsel: Global Opportunities and AI Dominance
O’Kennedy highlights the attractiveness of foreign markets due to rising stimulus and shareholder reforms. He selects Microsoft Corp., a leader in the AI boom, with its software and Azure platform driving massive-scale adoption.
Denis Taillefer, Caldwell Investment Management: Expanding Market Breadth
Taillefer anticipates a more subdued market in 2026 but sees opportunities in small and mid-cap segments. His top pick, Major Drilling Group International, is well-positioned to benefit from increased mining exploration spending, driven by high commodity prices and strong demand tailwinds.
Laura Lau, Brompton Funds: Broadening Earnings Growth
Lau expects economic growth to accelerate in 2026, driven by lower interest rates and fiscal stimulus. She selects Citigroup Inc., which stands to benefit from U.S. banking industry reforms and AI-driven expense efficiencies.
Anish Chopra, Portfolio Management Corp.: Resilience and Valuation Discipline
Chopra emphasizes portfolio resilience and cash flow quality. His top pick, BCE Inc., offers stability, income, and mean-reversion potential after addressing its dividend payout and restoring balance-sheet flexibility.
Jason Del Vicario and Steven Chen, Hillside Wealth | iA Private Wealth Inc.: Long-Term Focus
Del Vicario and Chen advocate for a concentrated portfolio of high-quality businesses held for the long term. Their 2026 pick, Plover Bay Technologies, is a Hong Kong-based company with global reach, strong returns on invested capital, and a commitment to dividend payouts.
Final Thoughts: Navigating the 2026 Market
As we look ahead to 2026, these fund managers offer a diverse range of strategies and stock picks. From defensive value investing to AI-driven growth opportunities, their insights provide a comprehensive guide for investors. But the question remains: which approach will reign supreme in the coming year? Will it be the steady hand of index investing or the active management of these seasoned professionals? We invite you to share your thoughts and predictions in the comments below.
