Teal Linde’s Top Picks for June 1, 2026

Teal Linde, Manager of the Linde Equity Fund

Focus: North American large and mid-cap stocks

Top Picks: Hubspot, Colliers, Blue Owl Capital

MARKET OUTLOOK:

Traditionally, markets have anchored themselves to earnings, cash flows, and economic data. Those factors still matter, but they’re no longer setting the pace.

Instead, positioning, narratives, and momentum are increasingly driving price action. You can see it in the speed of reversals.

Stocks are reacting less to what companies report and more to how investors feel about the story surrounding those reports.

A “good” earnings report can result in a sell off if expectations were too high, while a mediocre one can spur a rally simply because sentiment had gotten too negative. These reactions are being amplified by structural changes in the market.

Passive flows, algorithmic trading, and retail participation have all increased the feedback loop. When sentiment shifts, capital moves faster than ever, which further reinforces the trend.

The result is a market that can detach from fundamentals for longer stretches. Valuations can expand without clear justification, and corrections can happen abruptly when sentiment finally turns.

None of this means fundamentals are irrelevant. Over the long term, they still tend to win. But in the short term, and increasingly in the medium term, investors are operating in a sentiment-driven environment.

In such a market the key question isn’t just “How are the fundamentals?”, but rather “What does the market believe and how long will it last before it quickly changes?”

Reflecting just how much market the market has detached from fundamentals, Warren Buffet’s Berkshire Hathaway now sits on approximately US$400 billion in cash, representing about half of its entire investment portfolio.

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TOP PICKS:

Hubspot (HUBS NYSE)

HubSpot is a leading customer relationship management (CRM) platform that helps businesses grow through integrated marketing, sales, service, content management, and operations tools. Designed primarily for small and mid-sized companies, HubSpot provides a unified, cloud-based system that centralizes customer data and automates engagement across the entire customer lifecycle.

In its latest quarterly results, the company delivered a beat and raise on both revenues and earnings per share. However, the guidance included a change in the company’s pricing method that will include more artificial intelligence (AI) consumption-based pricing. Feeling some uncertainty about the change, analysts expressed reservations in buying into the improved guidance until they see more evidence that the new pricing method actually works.

As a result of their uncertainty, Hubspot’s stock sold off further. Displaying more conviction than these Wall Street analysts, the CEO and CTO took advantage of the sell off and bought US$0.5 million and US$1.8 million worth of shares, respectively.

Our bet is with the CEO and CTO. Hubspot trades at 17 times 2026 expected earnings, with revenues and EPS expected to grow 18 and 35 per cent, respectively, this year

Colliers (CIGI TSX)

Colliers has seen its stock price hit hard over fears that AI is going to displace human agents. However, Colliers’ business is not a commodity service but a relationship-driven advisory model that relies on proprietary data, professional licensure, experience, and trusted client relationships to execute complex and highly customized transactions.

Recognizing the power of AI, Colliers is also investing in internal AI capabilities to strengthen its own competitive position, which should enable further industry consolidation opportunities as smaller competitors struggle to keep pace. Seeing the selloff as a buying opportunity, in February, when Collier’s stock fell 25 per cent in four days due to AI fears, CEO and Chairman Jay Hennick bought $16 million worth of shares for his family foundation. And if you look at a five year chart, the company is expected to achieve its highest adjusted EPS this year, yet its stock is trading near its five year base line, which means its cheapest valuation in many years.

That’s probably why CEO and Chairman, Jay Hennick, bought another $29 million shares just two to three weeks ago, along with Collier CFO who bought $230,000.

Blue Owl Capital (OWL NYSE)

Blue Owl’s peers typically trade between 20 to 30 times earnings. While the whole group has traded off due to private credit fears, Blue Owl now trades at less than 12 times 2026 expected earnings per share (EPS) of US$0.88.

As a result of its discounted valuation, its dividend now yields nine per cent. Similar to Hubspot and Colliers, AI fears have driven down Blue Owl’s stock as retail investors have fled from private credit investments worried that AI will materially harm the software companies Blue Owl and other private credit companies have lent to.

Yet, with Blue Owl’s latest quarterly report, the company raised another US$9 billion in assets, including US$4 billion for private credit, reaching a total of US$315 billion, stated their commitment to paying a 92 cent per share dividend in 2026 and to bringing their payout ratio down to 85 per cent over the next three to four years through growth (and not via a dividend cut), which will be supported by the company’s US$30 billion in yet to be deployed fee earning capital.

The largest investment managers have a strong history of managing through challenging periods. As a new member of this cohort, Blue Owl is likely to do the same.

PAST PICKS: JUNE 23, 2025

UiPath (PATH NYSE)

Then: US$12.23

Now: US$12.12

Return: -0.8%

Total Return: -0.8%

Pembina Pipeline (PPL TSX)

Then: $50.59

Now: $64.31

Return: 27.1%

Total Return: 31%

Delta Air Lines (DAL NYSE)

Then: US$48.25

Now: US$80.50

Return: 67%

Total Return: 69%

Total Return Average: 99.2%