In this article, we will discuss the 11 Best TSX Stocks to Buy According to Hedge Funds.
Canadian equities produced a standout performance in 2025. The S&P/TSX Composite Index, which tracks the performance of the largest and most liquid companies listed on the Toronto Stock Exchange, or TSX, closed the year with a gain of over 28%. By comparison, the S&P 500 returned 18% as of December 2025. An analysis by John Zechner of J. Zechner Associates shows that this is only the third time in 15 years that the TSX outpaced its American counterpart.
Zechner attributed the outperformance largely to gold stocks, which surged over 90% within the Basic Materials sector and alone accounted for more than one-third of the TSX’s overall 2025 gain, despite representing just 12% of the index’s weight. He noted that while the artificial intelligence craze continued to dominate US markets, price gains for most of the big AI names were “much more muted” as excessive valuations and growing doubts about the sector’s growth trajectory took hold.
An analysis by economists at the National Bank of Canada indicates that the TSX’s resilience has carried into 2026. The S&P/TSX was down just 1.2% year-to-date as of March 20 against the S&P 500’s 5.0% decline over the same period, the analysis shows. In that light, the economists drew a direct parallel to 2022, when the TSX fell 8.7% over twelve months versus 19.4% for the S&P 500, a performance that the TSX owed to its heavier commodity exposure and lighter technology weighting.
“In 2026, that same composition is once again working in Canada’s favor,” the economists wrote. They noted that while Financials and Technology remain drags on the TSX, “their combined weight in the index is not large enough to offset the tailwind from commodities, a dynamic that should persist as long as crude prices remain elevated and gold continues to benefit from global uncertainty.”
Incidentally, Dorian Carrell, head of multi-asset income at Schroders, believes the opportunity set for this year “appears skewed to sectors and regions outside the U.S. market.” For Daniel Casali, Chief Investment Strategist at Evelyn Partners, there has never been a more ideal time to maintain a balanced exposure between US equities and other global markets. Both analysts argue that there is relative weakness in US equities.
Against this backdrop, the following analysis identifies the 11 best TSX stocks to buy according to hedge funds.
Our Methodology
To identify the 11 Best TSX Stocks to Buy According to Hedge Funds, we used the Finviz stock screener to compile a list of companies listed on the Toronto Stock Exchange (TSX) and also listed in the US on either the NYSE or NASDAQ. We then narrowed to stocks that were the most popular among elite hedge funds and that analysts were bullish on (as of April 23). The stocks are ranked in ascending order by the number of hedge funds that hold stakes in them as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best TSX Stocks to Buy According to Hedge Funds
11. Orla Mining Ltd. (NYSEAMERICAN:ORLA)
Number of Hedge Fund Holders: 25
Stock Upside: 58.21%
Orla Mining Ltd. (NYSEAMERICAN:ORLA) is one of the best TSX stocks to buy according to hedge funds. On April 13, Orla Mining Ltd. (NYSEAMERICAN:ORLA) said it produced a combined 81,206 ounces of gold across its two operating mines for the first quarter of 2026. The mines are the Musselwhite Mine in Northwestern Ontario, Canada, and the Camino Rojo Mine in Zacatecas, Mexico. This production, the company said, puts it on track to hit its full-year guidance of between 340,000 and 360,000 ounces.
Specifically, the Musselwhite carried the bulk of the output, Orla said. It contributed 62,985 ounces after processing 332,822 tons of ore at a grade of 6.29 g/t gold and achieving a strong recovery rate of nearly 96%. Orla added that beyond production, Musselwhite also advanced its long-term growth agenda during the quarter by completing 3,437 meters of lateral underground development. This includes work on a dedicated exploration drift being used to set up diamond drilling in the PQ Extensions area.
For Camino Rojo, Orla said the mine added 18,221 ounces for the quarter. The mine stacked 1.83 million tons of ore at 0.59 g/t gold through its open-pit heap leach process at a daily rate of roughly 20,300 tons. Still at this mine, Orla said it received the final environmental permit from Mexico’s environmental authority SEMARNAT in March this year. This means the company now has all the approvals it needs to mine the full remaining oxide open-pit, including the previously restricted layback area.
Orla Mining Ltd. (NYSEAMERICAN:ORLA) is a mining company focused on the acquisition, development, and operation of gold projects in the Americas. Its flagship asset is the Camino Rojo oxide gold mine in Zacatecas, Mexico, which produces gold through open-pit, heap leach operations.
10. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 36
Stock Upside: 11.08%
Nutrien Ltd. (NYSE:NTR) is one of the best TSX stocks to buy according to hedge funds. On April 20, Scotiabank analyst Ben Isaacson raised his price target on Nutrien Ltd. (NYSE:NTR) to $75 from $70 while keeping the stock at a Sector Perform rating.
Isaacson argued that the conflict in the Middle East has made Nutrien’s nitrogen business worth more than it was before. This is because geopolitical disruptions have effectively lowered the risk-adjusted availability of nitrogen supply globally, which, in turn, benefits North American producers like Nutrien. To this end, the analyst revised his nitrogen price forecast upward. He lifted his mid-cycle estimate for NOLA urea, a key benchmark for US nitrogen prices, to $400 per short ton. Scotiabank estimates this price deck revision alone could add roughly $800 million in run-rate EBITDA across nitrogen producers like Nutrien, which translates to about $600 million in incremental free cash flow.
The analyst also noted that Canpotex, Nutrien’s export marketing arm, is sold out through June with no signs of demand destruction. However, the analyst is not yet convinced that margins have fully followed the recent price increases, with higher freight costs, rather than genuine demand strength, largely responsible for elevated delivered prices.
Scotiabank also flagged that energy-driven cost inflation could weigh on potash cash costs over the next one to two quarters. Isaacson said that the firm is watching for possible volume pressure to emerge in the fall. In other words, the firm made no meaningful changes to its potash price forecasts.
Nutrien Ltd. (NYSE:NTR) is an agricultural inputs company formed through the merger of Potash Corporation and Agrium. It produces and distributes crop nutrients, including potash, nitrogen, and phosphate fertilizers, and operates a large global retail network supplying seeds, crop protection products, and agronomic services to farmers.