Podcasts · In the Money with Amber Kanwar

Why $22 Billion Letko Brosseau is Bullish on Canada

4 Jun 2026 · 59 min · Episode 142

Episode Why $22 Billion Letko Brosseau is Bullish on Canada

0:00 58:45

Canada just slipped into a technical recession, stocks are sitting at record highs— and one renowned $22 billion firm is leaning in, not backing away.

On this episode of In the Money with Amber Kanwar, Alex Letko, Portfolio Manager at LetkoBrosseau, explains why he remains bullish on Canada despite growing skepticism. While headlines point to slowing GDP, he argues the underlying economy is more resilient than it feels—supported by real wage growth and steady consumer spending. He also tackles a debate in the market right now: Canadian banks trading at record highs and premium valuations. Rather than calling it a bubble, he makes the case that strong earnings, oligopolistic structure, and potential pension fund inflows could continue to support the group.

At the same time, Letko outlines why the firm has been more cautious globally—pointing to stretched valuations and extreme concentration in the U.S. market. With over 80% of the S&P 500 trading above 20x earnings, he explains why they’ve been trimming winners and holding cash to redeploy into better opportunities, including Canada.

In the Mailbag, the conversation starts with BCE (BCE.TO), where Letko sees a compelling turnaround story with a sustainable dividend and limited optimism priced in. He also weighs in on Canadian telcos more broadly, the surprising strength in auto parts makers like Linamar (LNR.TO) and Magna (MG.TO) despite tariff concerns, and why his firm has trimmed energy exposure even with oil prices pushing higher. The discussion then shifts globally, breaking down the AI-driven surge in semiconductor names like Samsung (005930.KS) and SK Hynix (000660.KS), where tight memory supply could persist—but the cycle remains key. He also highlights Brazil as an emerging opportunity, where improving fundamentals and potential political change could drive a re-rating.

In Pro Picks, Letko doubles down on those global themes—starting with Copel (CPLE6.SA), a Brazilian utility he sees as a high-quality, low-cost operator with strong dividend upside. He also highlights Bolsa Mexicana (BOLSAA.MX), the Mexican stock exchange, as a “moaty” way to play long-term financial penetration. And back in Canada, he makes a contrarian call on Air Canada (AC.TO), arguing that despite near-term volatility, improving margins and a shift toward premium travel could drive meaningful earnings growth over time.

Timestamps

00:00 Trailer

02:20 Intro 03:35 The roots of LetkoBrosseau 05:40 Is the firm more cautious right now?

07:35 Do we have to be patient for the pullback 09:00 Are the Canadian banks in a bubble? 12:00 Bringing Canadian pension funds back to Canada 14:30 Why LetkoBrosseau is bullish Canada 19:00 The future of Canada’s energy sector 20:50 LetkoBrosseau’s move into retail 24:30 Hamilton ETFs: MIX

26:30 ITM Mailbag: BCE

30:20 Linamar & Magna (LNR, MG) 34:00 Energy stocks 39:50 Samsung & SK Hynix 43:50 Brazil 46:00 Alex’s Pro Picks (Copel, Bolsa Mexicana, Air Canada)