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Bristol Gate Capital Partners, an investment management company, recently released its Q3 2026 investor letter for “Canadian Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the S&P/TSX Composite Total Return Index, which gained 1.6% in the third quarter of 2026, as market returns were concentrated in a handful of large stocks. The strategy struggled to keep pace because technology and materials led the market, while defensive and rate-sensitive sectors weakened amid rising bond yields. Trade tensions between Canada and the United States, tariffs, and volatile commodity prices added to uncertainty. Bristol Gate remained focused on businesses capable of funding dividend growth through growing cash flows rather than chasing short-term market leaders. Looking ahead, the firm believes its emphasis on quality, dividend growth, and disciplined portfolio construction remains well-suited to uncertain market conditions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Bristol Gate Canadian Equity Strategy highlighted stocks like Shopify Inc. (NASDAQ:SHOP). Shopify Inc. provides a commerce platform that helps businesses manage online and in-person sales, payments, inventory, fulfillment, and customer relationships. The one-month return of Shopify Inc. (NASDAQ:SHOP) was 6.20%, while its shares traded between $94.00 and $180.88 over the last 52 weeks. On October 30, 2026, Shopify Inc. (NASDAQ:SHOP) stock closed at approximately $157.49 per share, with a market capitalization of about $202.63 billion.
Bristol Gate Canadian Equity Strategy stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its Q3 2026 investor letter:
“Shopify Inc. (NASDAQ:SHOP) rose 30.0% and contributed 1.2 points, about three-quarters of the index’s gain, after reporting second-quarter revenue of US$3.58 billion, up 34% year over year. The five largest contributors (Shopify, Suncor, Canadian Natural Resources, Agnico Eagle, and Wheaton Precious Metals) added 2.8 points combined, so the rest of the index subtracted about 1.2 points (Click Here To Read The Letter In Detail).”
Shopify Inc. (NASDAQ:SHOP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 82 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) at the end of the second quarter, compared with 88 in the previous quarter. While we acknowledge the risk and potential of Shopify Inc. (NASDAQ:SHOP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns within a shorter time frame. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
