Small-cap stocks have significantly outperformed their large-cap
peers so far this year but valuations remain at a massive
discount, so what names should be on your radar?
On this episode of In the Money with Amber Kanwar, Aubrey Hearn,
Senior Vice-President, Portfolio Manager & Lead – U.S. &
Small Cap Equities at CI Global Asset Management, makes the case
that the small-cap opportunity is far from over. He explains why
this is more than just a catch-up trade, pointing to a massive
valuation gap where small caps are trading at a 30% discount to
large caps despite typically commanding a premium. Hearn also
breaks down why fundamentals have quietly remained strong beneath
the surface, with many high-quality small caps delivering
consistent earnings growth even as multiples compressed. He
shares why a stronger U.S. economy, fiscal stimulus, and broader
earnings growth beyond the “Magnificent 7” are now creating a
much wider opportunity set for investors willing to look beyond
mega-cap tech.
In the Mailbag, Hearn tackles a range of investor questions
across cyclicals, private equity, and AI exposure. He explains
why he would buy TFI International (TFII) on a cyclical recovery
in transport, outlines the hidden value inside Brookfield
Business Corp. (BBUC), and makes the case for KKR (KKR) despite
concerns around private credit. He also weighs in on the AI
trade, warning that “you have way too much software if you own
any,” while selectively adding exposure. On Canadian names, he
discusses Celestica (CLS) as a picks-and-shovels AI play, breaks
down the controversy around GFL Environmental (GFL), and calls
Cargojet (CJT.TO) “stupid cheap” despite years of
underperformance—highlighting its dominant market share and
strong pricing power.
In Pro Picks, Hearn leans into battleground stocks with
asymmetric upside. He highlights Live Nation (LYV) as a long-term
compounder driven by the global growth of live events, despite
regulatory overhangs. He also makes a contrarian case for Pollard
Banknote (PBL.TO), pointing to explosive growth in its iLottery
business alongside deeply discounted valuation, and sees a
turnaround opportunity in Colliers (CIGI) as commercial real
estate activity recovers. Across all three ideas, the common
thread is clear: misunderstood businesses, strong underlying
fundamentals, and significant upside if sentiment shifts.
Timestamps
00:00 Trailer
01:00 Intro
04:00 What’s exciting about the small-cap universe?
05:30 What’s driving the resurgence in the small-cap
sector?
08:40 Stay in the blue-chip version of small-caps
10:30 This year the Russell should grow faster than the S&P
500
12:00 What’s the buying opportunity today?
16:00 ITM Mailbag: TFI International stock (TFII)
20:00 Brookfield Business Corp stock (BBUC)
23:50 KKR stock (KKR)
26:30 AI vs. Software in small-caps
30:45 Celestica stock (CLS)
34:00 GFL Environmental (GFL)
39:00 Cargojet stock (CJT)
43:50 Aubrey’s Pro Picks (LYV, PBL, CIGI)
Sponsors
For over 25 years, Raymond James has been helping Canadians
achieve their financial goals. Visit https://raymondjames.ca
today to discover how you can live a life well planned.
Pro Picks is brought to you by ATB Financial. For more
information on ATB Cormark Capital Markets visit
https://ATB.com/inthemoney
This episode is sponsored by CI Global Asset Management. For more
on CI’s Small-Cap Funds visit:
CLML:
https://funds.cifinancial.com/en/funds/mutual-funds/CIGlobalClimateLeadersFund.html?currencySelector=1&classId=482&redirect_type=class_id&cid=podcast-en_email_podcast-en_CIGAMMunroPodcastMay2026
CMGG:
https://funds.cifinancial.com/en/funds/mutual-funds/CIMunroGlobalGrowthEquityFund.html?currencySelector=1&classId=481&redirect_type=class_id&cid=podcast-en_email_podcast-en_CIGAMMunroPodcastMay2026
CI Canadian Small/Mid Cap Equity Fund :
https://funds.cifinancial.com/en/funds/mutual-funds/CICanadianSmallMidCapEquityFund.html?currencySelector=1&seriesId=20660&cid=PL_email_fnd-en_CIGAMAubreyApril2026
CI Global Small/Mid Cap Equity Fund:
https://funds.cifinancial.com/en/funds/mutual-funds/CIGlobalSmallMidCapEquityFund.html?currencySelector=1&seriesId=13574&cid=PL_email_fnd-en_CIGAMAubreyApril2026
CI U.S. Small/Mid Cap Equity Private Pool :
https://funds.cifinancial.com/en/funds/private_pools/CIU.S.SmallMidCapEquityPrivatePool.html?classId=298&type=-1&redirect_type=class_id¤cySelector=1&cid=PL_email_fnd-en_CIGAMAubreyApril2026
CSMD :
https://funds.cifinancial.com/en/funds/private_pools/CIU.S.SmallMidCapEquityPrivatePool.html?currencySelector=1&classId=482&redirect_type=class_id&cid=PL_email_fnd-en_CIGAMAubreyApril2026
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DISCLAIMERS
The information provided in this podcast is for informational
purposes only and does not constitute financial, investment, or
professional advice.The views expressed by the host and guests
are their own and do not necessarily reflect the opinions of any
organization or company. The host and guests may maintain
positions in any securities discussed on the podcast. Always
consult with a qualified financial advisor or professional before
making any investment decisions. On this episode we discuss
Cargojet which is a stock Amber owns.
Disclaimers for Aubrey Hearn
This segment of “In the Money" with Aubrey Hearn” has been paid
in part by CI Global Asset Management.
Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please read
the prospectus before investing. Mutual funds are not guaranteed,
their values change frequently, and past performance may not be
repeated.
This podcast is provided as a general source of information and
should not be considere...
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