When 20 Investors Control 85% of Canadian Capital, Global Expansion Becomes Imperative

In collaboration with the Canadian Investor Relations Institute (CIRI), Rose & Company hosted a discussion on the state of equity capital markets and what it means for Canadian issuers. The panel brings together perspectives from the buy side and investor relations to explore how capital is flowing, where investor attention is focused, and how IR teams can compete for it. The insights below highlight the key takeaways from the conversation.

Canadian capital is highly concentrated, leaving issuers competing for attention from the same 20 domestic investors year after year.

The last public data filing shows roughly $700 billion is invested in Canadian equities, with about 85% held by just 20 domestic institutions. The rest is spread across hundreds of smaller investors with limited capacity to take meaningful positions. As a result, most issuers are calling on the same funds year after year in a zero-sum game.

“You’re really trying to convince a manager to sell one of your peers to buy you. That’s just the reality of a finite domestic market.”

The U.S. and Europe represent 3,656 institutions with deep capital pools that Canadian issuers systematically under-engage.

The U.S. alone has $194 billion managed by 2,560 institutions investing in Canadian equities, while Europe adds another $88 billion across 1,096. Yet most Canadian companies continue to meet the same 5–10 U.S. hedge funds and a handful of large asset managers.

“In Canada, you know 20 investors, and you’ve covered the market. In the U.S., there are hundreds of institutions that matter.”

S&P data reveals that roughly 90% of Canadian company meetings still occur in just five cities: Toronto, Montreal, New York, Boston, and London. Yet significant capital exists beyond these major centers, in markets like Des Moines, Kansas City, Dallas, Houston, Atlanta, Philadelphia, Chicago, Santa Fe, and across New Jersey. Reaching these under-engaged regions represents the real incremental opportunity for Canadian issuers.

Meeting data reveals up to 70% of investor interactions fail to meet basic qualification criteria, wasting valuable management time on investors who lack the mandate, capacity, or intent to buy.

Rose & Co.’s meeting analysis indicates that only 10% of meetings are with prospective investors likely to initiate new positions, 20% are with existing holders, and the remaining 70% offer limited strategic value. S&P findings echo this data, revealing a systematic problem: hedge funds consume 50%+ of U.S. meetings for Canadian companies, yet none of the top 20 holders of Canadian equities are hedge funds. Firms like Balyasny consistently rank among the top five by meeting volume but are absent from the top ranks of actual shareholders.

“When we look at the data, hedge funds drive meeting volume, but they don’t drive ownership. They take a lot of meetings, but very few positions.”

Every meeting should meet strict qualification criteria: the investor must have a long-term investment horizon, the ability to take a meaningful position, decision-making authority, and a mandate that allows ownership of your security. A $500 million fund with $20 million average positions is a better target for a $1 billion company than a massive fund where you would be immaterial to the portfolio.

Portfolio managers invest by conviction, not geography—issuers must earn inclusion through valuation discipline and differentiation.

Global portfolio managers run concentrated portfolios of 40–60 securities built on valuation discipline and alpha potential, not corporate address. A company earns inclusion only when its risk-adjusted return profile surpasses existing holdings, justified against global peers. Managers take many introductory meetings to understand management and strategy but allocate only when valuation, cash-flow visibility, and capital discipline align. Many keep “bench lists” of names they’d like to own at the right entry price, revisiting them when valuations turn. Follow-up meetings should add new developments, not repeat the same story. Investors care more about where profits are generated than where a company is domiciled. Canada competes directly with Australia and other resource-heavy markets for the same pool of global capital.

Virtual meetings enable efficient geographic expansion and should be used strategically for initial screening.

Fund managers increasingly prefer virtual meetings for initial contact, viewing them as an efficient use of time before committing to face-to-face engagement.

“A virtual meeting for the first touchpoint works well. You can tell pretty quickly if it’s a company worth going deeper on, and it saves time on both sides.”

A hybrid approach — virtual first meetings for screening, followed by in-person sessions for relationship deepening — allows for broader reach and better targeting precision. In-person meetings are still critical, but they’re most valuable once genuine investor interest has been established.

Investor relations functions as the "chief valuation department" and deserves resources proportional to its impact.

Valuation isn't determined by financial metrics alone. Borrowing costs are largely fixed by credit ratings, but the cost of equity capital is significantly influenced by subjective investor perception.

“Valuation isn’t just about performance — it’s about perception. How the story is told and to whom determines how the market prices it.”

Companies with identical fundamentals can trade at very different valuations depending on how well their story is understood, and investor relations is the function that controls this variable. Yet IR remains systematically underfunded across the market, often viewed as a cost center rather than a valuation driver. Educating management teams on the return on strategic IR investment is essential — because strong IR amplifies value creation, while weak IR erodes it, widening the discount and attracting opportunistic buyers.

Conclusion

With domestic capital increasingly concentrated, the real opportunity lies abroad — but accessing it requires precision, discipline, and the right strategy. Competing for global capital means knowing exactly which investors matter and how to reach them effectively. We partner with many Canadian issuers to identify qualified investors, execute targeted outreach, and convert interest into lasting ownership.

About Rose & Company

Rose & Company is a leading independent capital markets advisory firm offering strategic counsel and tailored solutions to help companies increase market valuation. Serving a broad range of companies across industries and geographies, we employ a forward-thinking approach to investor engagement and acquisition, leveraging our significant experience and our broad relationships within the investment community. We align our interests with those of our clients and focus on creating long-term value by identifying, engaging, and building relationships with high-quality, long-term investors.

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