Craig Jerusalim, senior portfolio manager at CIBC Asset Management Inc. in Toronto, remains optimistic about the prospects for Canadian equities despite recent market volatility and tariff concerns. Jerusalim co-manages over $11 billion in assets across two investment strategies focused on Canadian growth at a reasonable price and Canadian dividend growth.

Jerusalim attributes recent market pullbacks to buying opportunities, noting that a long-term perspective is essential when navigating short-term volatility. His CIBC Dividend Growth Fund reported a 19.4 percent total return over the past year, with three- and five-year annualized returns of 18.6 percent and 12.8 percent, respectively, as of July 21. Meanwhile, the Renaissance Canadian Growth Fund returned 17.5 percent over the past year, with three- and five-year annualized returns of 18.1 percent and 11.6 percent.

Among his current favored investments is Kraken Robotics Inc., a marine technology company based in Mount Pearl, Newfoundland and Labrador. Jerusalim began acquiring shares earlier this year following Kraken’s acquisition of European competitor Covelya Group Ltd. He highlighted several positive developments, including stronger-than-expected orders for underwater robotics and batteries, increased demand from military and commercial customers amid evolving geopolitical tensions, and insider purchases by the company’s CEO and CFO. He also pointed to the potential for Kraken’s inclusion in major stock indexes and anticipated orders from the U.S. Navy as factors that could contribute to a stock revaluation.

Jerusalim has also been adding to Brookfield Asset Management Ltd., a Toronto-based private equity firm specializing in acquisitions and growth capital. Despite a broad sector sell-off linked to concerns about artificial intelligence disrupting software-driven businesses, Jerusalim emphasized that Brookfield’s direct software exposure remains minimal, under 1 percent. He noted Brookfield’s ongoing fundraising successes and its likely benefit from continued AI-related investments in infrastructure, energy, real estate, and data sectors. He indicated an overweight position in Brookfield’s asset management arm and parent company relative to the S&P/TSX Composite Index.

Cameco Corp., the Saskatoon uranium producer, is another key holding for Jerusalim. After purchasing the stock in 2023, he increased his stake following a roughly 30 percent pullback from February highs. Jerusalim cited heightened focus on national energy security and nuclear power’s role in reducing greenhouse gas emissions as drivers for long-term demand. He also noted Cameco’s strategic 49 percent ownership stake in Westinghouse Electric Co., a major global nuclear services provider, which complements the company’s growth prospects.

Conversely, Jerusalim reported trimming exposure to Canadian banks, moving to an underweight position relative to the market index. While acknowledging robust fundamentals, including margin expansion, wealth management growth, strong capital markets activity, and supportive regulatory actions such as the recent reduction of the domestic stability buffer by the Office of the Superintendent of Financial Institutions, he expressed concerns over valuations. The Big Six Canadian banks trade at a forward price-to-earnings ratio around 16 times, well above U.S. peers and pre-financial crisis peaks, leaving limited room for error and prompting a more cautious stance.

Overall, Jerusalim’s outlook remains positive for Canadian equities, especially in sectors tied to energy, technology, and asset management, with a measured approach to valuation risks in the financial sector.