Show notes
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.Timestamps00:00 Trailer01:00 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) SponsorsFor 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_CIGAMAubreyApril2026Linkshttps://inthemoneypod.com/ https://instagram.com/inthemoneypodhttps://facebook.com/profile.php?id=61569721774740 https://twitter.com/inthemoneypod https://tiktok.com/@[email protected] 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...