What Makes Canadian Imperial Bank of Commerce (CM) a Good Investment?

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as Canadian Imperial Bank of Commerce (NYSE:CM). Headquartered in Toronto, Canada, Canadian Imperial Bank of Commerce (NYSE:CM) is a diversified financial institution. The one-month return of Canadian Imperial Bank of Commerce (NYSE:CM) was 3.48%, and its shares gained 35.34% of their value over the last 52 weeks. On October 7, 2025, Canadian Imperial Bank of Commerce (NYSE:CM) stock closed at $81.58 per share, with a market capitalization of $75.9 billion.

LRT Global Opportunities Strategy stated the following regarding Canadian Imperial Bank of Commerce (NYSE:CM) in its third quarter 2025 investor letter:

"Canadian Imperial Bank of Commerce (NYSE:CM) is one of Canada’s largest and most established financial institutions, with a diversified business model built to serve clients across Canada and in select global markets. The bank’s operations are organized into four main segments: Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets. This structure allows CIBC to leverage its foundational strength in its domestic market to pursue strategic growth in higher-value segments, particularly in wealth management and cross-border banking.

The bedrock of CIBC’s franchise is its Canadian Personal and Business Banking division, which commands a significant share of the mature and stable Canadian banking sector. This segment provides a full suite of financial products and services to millions of retail and business clients across the country. The stability and scale of these operations generate consistent earnings and a low-cost deposit base, which provides the critical funding for the bank’s other strategic initiatives and its overall financial strength…” (Click here to read the full text)

Canadian Imperial Bank of Commerce (NYSE:CM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Canadian Imperial Bank of Commerce (NYSE:CM) at the end of the second quarter, compared to 23 in the previous quarter. While we acknowledge the potential of Canadian Imperial Bank of Commerce (NYSE:CM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.

In another article, we covered Canadian Imperial Bank of Commerce (NYSE:CM) and shared the list of cheap high dividend stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.