Top Stock Picks and Portfolio Tips from Nine Canadian Fund Managers for 2026

As the investment landscape continuously evolves, the insights from seasoned fund managers can shed light on potential opportunities and strategies for investors. With economic indicators suggesting a mix of challenges and growth prospects, understanding the best stock picks for the upcoming year can provide crucial guidance for making informed decisions. This article delves into the stocks recommended by nine Canadian fund managers, highlighting their strategies and predictions for the market in 2026.

Canadian stock market performance in 2025

2025 proved to be a year of surprises, characterized by fluctuating tariffs and political drama, yet investors who embraced a steady index approach found success. The S&P/TSX Composite Index delivered a remarkable total return of nearly 32%, while the S&P 500 Index achieved an impressive 18% return. This performance made it challenging for fund managers to consistently outperform these indices.

Despite these hurdles, nearly half of the fund managers featured last year managed to present stock picks that outstripped the major indices in 2025. Their experiences offer valuable takeaways for the upcoming year, illustrating the importance of adaptability and strategic thinking in a fluctuating market.

Top stock picks for 2026

Looking ahead, many fund managers have provided insights into their top stock selections for 2026. These choices reflect a combination of resilience, growth potential, and strategic positioning within their respective sectors.

• Canadian National Railway Co.: This company has faced challenges in recent years but is expected to improve profitability as operational metrics enhance.
• Methanex Corp: As the largest producer of methanol globally, Methanex is positioned well to capitalize on the increasing demand for cleaner fuels.
• Trisura Group Ltd: This specialty insurer has shown robust growth and is anticipated to continue gaining market share, trading at a substantial discount to peers.
• Microsoft Corp: Positioned at the forefront of the AI boom, Microsoft’s innovative capabilities and strong financials make it a prime candidate for investment.
• Plover Bay Technologies Ltd: With a strong track record of returns and a focus on hardware and software solutions, this company is poised for growth.

Insights from fund managers

The perspectives shared by experienced fund managers provide valuable insights into their investment philosophies and strategies. Here’s a closer look at some of their thoughts and recommendations.

Christine Poole, Davis Rea

Last year, Christine Poole selected WSP Global Inc., which faced challenges with a 2025 return of -1.16%. For 2026, she emphasizes the importance of investing in financially strong companies. Her top pick is the Canadian National Railway Co., which is expected to see improvements in operating metrics and profit margins.

Kim Shannon, Sionna Investment Managers

Kim Shannon's last pick, Toronto-Dominion Bank, delivered a remarkable return of 74.52%. She identifies Methanex Corp. as her top pick, highlighting its status as a leading methanol producer and its potential for significant price appreciation.

Craig Jerusalim, CIBC Asset Management

Craig Jerusalim stresses the importance of understanding company fundamentals, especially after a strong equity market period. His top pick for 2026 is Trisura Group Ltd., which is experiencing strong growth and offers a compelling valuation opportunity.

Stan Wong, Scotia Wealth Management

Stan Wong’s previous selection, Alphabet Inc., saw a return of 65.78%. For the upcoming year, he recommends Taiwan Semiconductor Manufacturing Co., a major player in advanced chip production, which is well-positioned to capitalize on the booming demand for semiconductors.

Ken O’Kennedy, Dixon Mitchell Investment Counsel

Ken O’Kennedy focuses on global investment opportunities, identifying Microsoft Corp. as a compelling choice amidst the AI boom. He emphasizes the company’s strong cash flows and leadership in the market.

Denis Taillefer, Caldwell Investment Management

Denis Taillefer anticipates subdued returns in 2026 but encourages investors to explore small and mid-cap opportunities. His top pick is Major Drilling Group International Inc., which stands to benefit from increased mining sector spending.

Laura Lau, Brompton Funds

Laura Lau believes economic growth will accelerate due to lower interest rates and fiscal stimulus. She recommends Citigroup Inc., highlighting its potential for significant earnings growth and shareholder returns through buybacks.

Jason Del Vicario and Steven Chen, Hillside Wealth

This duo recommends a concentrated portfolio strategy focusing on high-quality businesses. Their top pick for 2026 is Plover Bay Technologies Ltd., which boasts strong financial returns and a sound business model.

Strategies for successful investing

As the market continues to evolve, several common strategies emerge from the insights provided by these fund managers:

• Understand your investments: Knowing the fundamentals of the companies you invest in is crucial for long-term success.
• Diversification: A well-diversified portfolio can help mitigate risks associated with market volatility.
• Focus on cash flow: Companies with strong cash flow positions are likely to weather economic downturns better than those without.
• Stay disciplined: Maintaining a long-term perspective can help investors navigate short-term market fluctuations.
• Seek undervalued stocks: Identifying stocks that are undervalued can offer significant upside potential as the market corrects.

Conclusion: Navigating the investment landscape

The insights from these Canadian fund managers provide a roadmap for navigating the complexities of the investment landscape in 2026. By focusing on resilient companies, understanding market dynamics, and employing disciplined investment strategies, investors can position themselves for potential success in the upcoming year.