Craig Jerusalim, senior portfolio manager at CIBC Asset Management Inc. in Toronto, expressed continued confidence in Canadian equities despite recent market volatility and tariff concerns. Overseeing more than $11 billion across two funds focused on Canadian growth and dividend growth, Jerusalim views recent pullbacks as buying opportunities in quality companies that may have been temporarily overlooked.

Jerusalim highlighted strong performance in his funds, with the CIBC Dividend Growth Fund rising 19.4 percent over the past year and achieving three- and five-year annualized returns of 18.6 percent and 12.8 percent, respectively. The Renaissance Canadian Growth Fund posted a 17.5 percent gain in the past year, with three- and five-year annualized returns of 18.1 percent and 11.6 percent. These returns are net of fees and reflect data as of July 21.

Discussing specific stocks he favors, Jerusalim identified Kraken Robotics Inc., a marine technology company based in Mount Pearl, Newfoundland and Labrador, as a recent addition. The company’s stock price had pulled back following its acquisition of European peer Covelya Group Ltd., creating a better valuation entry point. Jerusalim cited robust order flows for underwater robotics and batteries, bolstered by rising military and commercial demand amid a shifting geopolitical landscape. He noted insider buying by Kraken’s CEO and CFO and anticipated that upcoming quarterly results, potential inclusion in a major index within the next year, and additional orders from the U.S. Navy could boost the stock further.

Brookfield Asset Management Ltd., based in Toronto, was another name Jerusalim has been adding to. Despite a sector-wide decline tied to concerns that artificial intelligence might disrupt the software businesses of alternative asset managers, Brookfield’s limited software exposure—less than 1 percent of assets—has helped insulate it. The firm has not had to gate any funds, and Jerusalim expects it to deliver record fundraising for the year. He also flagged Brookfield as a potential beneficiary of ongoing AI-driven investments in infrastructure, energy, real estate, and data sectors, adding that he is overweight both Brookfield Asset Management and its parent company Brookfield Corp. relative to the S&P/TSX Composite Index.

Cameco Corp., the Saskatoon-based uranium producer, remains another preferred holding. Jerusalim noted that despite Cameco’s valuation not being inexpensive, a roughly 30 percent decline from February highs offered a timely entry point to increase exposure. He pointed to heightened global energy security concerns—amplified by conflicts such as the war in Iran—and the growing role of nuclear energy in both energy security and greenhouse gas reduction strategies worldwide. Cameco’s 49 percent stake in Westinghouse Electric Co., a leading nuclear services firm acquired in 2023 alongside Brookfield Renewable Partners, was cited as an additional strategic advantage.

Regarding sectors where exposure has been reduced, Jerusalim said his team has recently trimmed their positions in Canadian banks, moving to an underweight stance relative to the benchmark. While acknowledging strong performance from the Big Six banks—driven by margin expansion, wealth management growth, capital markets activity, and favorable regulatory moves like OSFI’s June reduction of the domestic stability buffer—Jerusalim expressed caution due to the group’s elevated valuations. The Canadian banks are trading at approximately 16 times forward price-to-earnings ratios, well above U.S. peers and previous pre-financial crisis peaks. Given the premium pricing, he reasoned the sector is vulnerable to correction should any adverse developments occur. Nevertheless, significant exposure remains in his portfolios, with a continued long-term positive outlook on the sector.

Overall, Jerusalim emphasized a long-term bullish stance on the Canadian equity market, encouraging investors to view short-term volatility as an entry point rather than a deterrent.