Canada’s Smart Money Is Piling Into This TSX Leader

Canada’s smart money does not chase every shiny thing on the TSX. It usually moves with a purpose, and it often moves before the crowd notices. When you hear that big investors are piling into one stock, treat it like a clue, not a command. Ask what has changed, what is durable, and what could break. Check the balance sheet, the cash flow, and the incentives. Then check the price.

Even the smartest buyers can overpay, and you do not get to see their exit plan. Most disclosures come after the fact, and big investors may pair a long position with hedges you never see. Look for repeat buying across quarters, not one splashy headline. If the fundamentals look boring and strong, that is often the point. So let’s look at one to consider on the TSX today.

BN

Brookfield (TSX:BN) looks like a TSX stock built for this kind of market. It operates as a global investment firm that owns real assets and earns fees for managing other people’s capital. It is split into alternative asset management, wealth solutions, and operating businesses in renewables, infrastructure, real estate, and private equity. In October 2025, it completed a three-for-two stock split, which did not change the value but did broaden accessibility and liquidity.

The “smart money” angle shows up in the shareholder talk. Bill Ackman’s Pershing Square Capital Management has treated Brookfield as a core holding, now Pershing Square’s biggest position, at roughly 35 million shares in a disclosed filing. That kind of concentration signals conviction, even if it does not guarantee results.

Recent news fits the compounding playbook. In late 2025, Brookfield highlighted an agreement to acquire the remaining interest in Oaktree Capital Management, which would deepen its scaled credit platform. It also advanced its wealth solutions push, with a plan to buy Just Group, expected to close in the first half of 2026 if approvals arrive. On the operating side, it pointed to partnerships tied to next-generation power and AI infrastructure, including initiatives involving Westinghouse Electric Company and Bloom Energy.

Earnings support

Earnings give the clearest snapshot of momentum. In the third quarter of 2025, Brookfield reported distributable earnings of US$1.5 billion, or US$0.63 per share, and distributable earnings before realizations of US$1.3 billion, or US$0.56 per share. It also reported record fee-related earnings of US$754 million, supported by fee-bearing capital of US$581 billion. Brookfield ended the quarter with record deployable capital of US$178 billion.

It also boosted confidence with buybacks. The company reported it repurchased over US$950 million of Class A shares year to date at an average price of US$36, and it pegged its view of intrinsic value at US$69 at quarter end. You don’t need to accept that estimate, but you can respect the intent. If it keeps retiring shares below long-term value, per-share results can improve even if markets stay moody.

The outlook hinges on levers that can work in its favour, with real risks attached. If fundraising stays healthy, fee earnings can keep climbing. If transaction markets thaw, realizations and carried interest can add upside, and Brookfield has said it anticipates realizing significant carried interest into income over the next three years. Valuation debates here usually lean on distributable earnings and intrinsic value, so expect noise when accounting swings. Especially with earnings due Feb. 12.

Bottom line

So could BN be a buy for others? It can, if you want a TSX stock with multiple engines, deep capital, and a long record of compounding through cycles. It could also be the wrong fit if you need simplicity, low volatility, or a business you can value to with one tidy metric. Smart money may be piling in because it sees durable fees and discounted optionality. Your edge comes from patience, position sizing, and knowing what would make you sell.

The post Canada’s Smart Money Is Piling Into This TSX Leader appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.