O Canada, O Gains: Stephen Takacsy’s Great White North Picks for 2025
Canadian Strongholds: Why Stephen Takacsy Is Betting Big on EQB, Altus Group, and Tecsys Amid Global Turmoil
Editorial Team (ET)April 30, 2025
Canadian investors are stepping into 2025 with cautious optimism, but under the surface, geopolitical tremors are shaking the foundation of global markets. Stephen Takacsy, the president, CEO, and chief investment officer of Lester Asset Management, isn’t rattled. In fact, he’s doubled down on a strategy that’s as resilient as it is opportunistic—focusing squarely on Canadian equities that can weather the chaos and even thrive through the turbulence. His top picks this time? EQB, Altus Group, and Tecsys—three power plays that he believes offer not just shelter from the storm, but serious upside in a market distorted by uncertainty, tariffs, and a shaky U.S. dollar.
While 2025 started with tailwinds—lower inflation, declining interest rates, and strong job markets—Donald Trump’s trade tantrums have thrown sand into the gears. His renewed assault on America’s allies with tariffs has not only sparked retaliatory measures, but it’s also led to boycotts of U.S. goods and a selloff of U.S. bonds and equities. The damage isn’t just economic; it’s reputational. In response, Takacsy has carefully structured his Canadian equity portfolio to limit exposure to global volatility and consumer pullbacks. He’s been opportunistically adding to positions punished by market overreaction—names like Savaria, Jamieson Wellness, Pollard Banknote, and CCL. But the crown jewels of his current strategy are clear.
EQB: The Challenger Bank Ready to Break Out
EQB, formerly Equitable Bank, isn’t just Canada’s seventh-largest bank—it’s the country’s most dynamic financial disruptor. Long pigeonholed as a niche alternative mortgage lender, EQB has exploded into a full-spectrum financial institution since its 2022 acquisition of Concentra Bank. It now boasts a robust mix of consumer and commercial lending, equipment financing, and asset management. With a return on equity north of 15 percent, a forward P/E under eight, and a price-to-book of just 1.2, EQB’s valuation metrics look more like a bargain bin than a blue-chip bank. And yet, it’s been the best-performing bank stock on the TSX for more than a decade. The bank’s consistent growth in book value—between 10 to 15 percent annually—and its double-digit dividend hikes make it a clear standout. The recent 20 percent pullback? Takacsy calls it a gift. Even more convincing is that Stephen Smith, the bank’s largest shareholder, has recently boosted his stake beyond 17 percent, signaling confidence at the highest level.
Altus Group: The Real Estate Data Powerhouse
Altus Group is transforming from a traditional real estate consultancy into a tech-driven analytics juggernaut. Now laser-focused on its proprietary software platform, Altus offers mission-critical analytics tools for institutional clients including banks, insurers, pension funds, and real estate asset managers. It’s essentially become the Bloomberg Terminal of commercial real estate—high-margin, data-heavy, and indispensable. With recurring software revenue now making up nearly 75 percent of its top line and EBITDA margins approaching 30 percent, Altus is earning its stripes as a true SaaS player. Yet, it continues to trade at a steep discount to peers in the tech analytics space. After selling off its tax advisory unit, the company has been aggressively buying back shares at over $54, clearly signaling belief in its own valuation. And with major U.S. players like CoStar, S&P, and MSCI circling the analytics space, Altus is positioned as a highly attractive takeover candidate.
Tecsys: The Silent Giant of Healthcare Supply Chains
Tecsys, a small-cap software company based in Canada, is punching well above its weight in the healthcare and logistics sectors. Tecsys specializes in end-to-end supply chain solutions, serving hospital networks across the U.S. and expanding into pharmacies and broader distribution markets. Think of it as the invisible nervous system of complex logistics operations—from purchase order to fulfillment to accounting. And while small-cap tech has had a rough go of it, Tecsys is defying gravity. Its recurring SaaS revenue is growing by more than 30 percent annually. Gross margins now exceed 70 percent, and EBITDA margins are projected to surpass 10 percent next year. Even after tripling in price post-2019, the stock corrected with the broader tech market and has now pulled back by 20 percent—a move Takacsy sees as temporary and unjustified. He believes that Tecsys could ultimately fetch as much as $100 per share in a strategic sale. At just three times revenue, it’s dramatically undervalued compared to its peer group, yet it’s doing all the right things—tightening margins, expanding its customer base, and buying back its own stock.
Takacsy’s broader outlook paints a stark contrast between Canada’s stability and the U.S.’s unraveling narrative. Canadian bonds, while volatile, offer compelling yields in the 5 to 7 percent range—attractive enough to outpace inflation and conservative enough to sidestep undue risk. His fixed-income strategy leans into short-term, high-yield corporate paper. It’s a safe haven that still delivers returns, particularly when U.S. Treasury markets are flashing warnings and foreign capital is fleeing south of the border.
What’s clear is that while political theater in Washington steals the headlines, Takacsy is writing a different script—one focused on durability, value, and strategic patience. His picks—EQB, Altus, and Tecsys—don’t just offer upside, they offer conviction. These are companies with buybacks in motion, insider confidence, and business models designed to profit in a fractured, inflation-tugged, and tech-transformed world.
In a year where confusion reigns and rhetoric drives volatility, Stephen Takacsy isn’t following the noise—he’s following the numbers. And in the Canadian market, that strategy is not just playing defense. It’s aiming for the win.
Conclusion
Stephen Takacsy’s top picks aren’t just hot takes—they’re deeply researched convictions in a market clouded by global uncertainty and U.S. political instability. EQB offers growth and profitability at a discount, Altus is a tech transformation story in the real estate sector, and Tecsys is an underappreciated SaaS play with takeover potential. Each company aligns with Takacsy’s overarching philosophy: buy quality, stay Canadian, and lean into market pullbacks with confidence, not fear.
