11 Best Canadian Growth Stocks to Buy According to Hedge Funds

Core Insights - The article discusses the potential of Canadian growth stocks as an attractive investment alternative amid signs of fatigue in U.S. equity dominance, with a focus on companies that have shown significant earnings growth and hedge fund interest [1][2][4]. Group 1: Market Context - U.S. equities have led global markets for over a decade, but this leadership is showing signs of fatigue as of 2025, with valuation gaps narrowing between U.S. stocks and global peers [1]. - Major institutions suggest that developed international markets, including Canada, may offer stronger long-term returns than the U.S. due to valuation normalization and changing earnings dynamics [1]. Group 2: Canadian Equities - Canadian equities provide differentiated exposure to sectors that may behave differently from U.S. mega-cap technology and consumer companies, offering diversification benefits [2]. - Investing in Canadian stocks can reduce concentration risk and potentially benefit from currency tailwinds if the U.S. dollar weakens [2]. Group 3: Growth Metrics - Companies that have achieved an average EPS growth of over 20% in the past three years are highlighted as demonstrating expanding profitability and competitive strength, which are key drivers of long-term share price appreciation [3]. - Sustained earnings growth is often associated with higher valuations and increased investor demand [3]. Group 4: Hedge Fund Interest - Hedge fund ownership indicates a high level of conviction, as these funds invest significant resources in fundamental research and analysis [4]. - Focusing on Canadian growth stocks that attract hedge fund interest allows investors to align with sophisticated capital and gain exposure to businesses poised for continued earnings expansion [4]. Group 5: Methodology - The selection of Canadian stocks was based on their track record of delivering earnings growth, specifically those with at least 20% EPS growth over the past three years [7]. - The final selection included companies that have reported noteworthy developments likely to impact investor sentiment, ranked by the number of hedge funds holding stakes as of Q3 2025 [7]. Group 6: Featured Companies - Integra Resources Corp. (NYSE:ITRG): - Number of Hedge Fund Holders: 10 - 3-year EPS growth: 59.14% - Recent financing of approximately $61.6 million to advance the DeLamar Project, reducing execution risk and supporting a strong growth narrative [9][10][11]. - Americas Gold and Silver Corporation (NYSE:USAS): - Number of Hedge Fund Holders: 11 - 3-year EPS growth: 46.56% - Initiated coverage with a Buy rating and a C$13 price target, focusing on ramping silver production and a joint venture to enhance shareholder returns [12][13][14].