Bad headlines can scare investors away fast. Sometimes that makes sense. A broken balance sheet, collapsing demand, or permanent business damage can turn a falling stock into a trap. But other times, the headline looks worse than the long-term story.
That’s where patient investors can find opportunity. If a company still owns valuable assets, produces cash, and trades below what those assets may be worth, the market’s fear can create a much better entry point. That’s why today we’re looking at one for investors to consider.
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ONEX
That’s why Onex (TSX:ONEX) looks interesting right now. Onex stock is a Toronto-based investment manager and holding company. It invests its own capital and manages money for institutional investors, family offices, banks, insurers, pensions, sovereign wealth funds, and wealthy clients.
The scale is impressive. Onex stock controls about US$55.8 billion in assets under management (AUM), while also investing US$9.4 billion of its own capital alongside clients. That gives investors two layers of potential return. The company can earn fees by managing outside money and also makes money when its own investments grow in value.
Into earnings
The recent bad headline came from a few areas at once. In May 2026, Onex announced a change affecting the voting rights of its multiple and subordinate voting share classes. Governance headlines like that can make investors pause. At the same time, its first-quarter results showed some pressure. Net earnings fell to US$129 million from US$168 million a year earlier. Asset-management fee-related earnings dropped to US$5 million from US$11 million, while total fee-related earnings moved to a US$3 million loss from a US$2 million profit.
That’s not the kind of quarter that gets investors excited. Yet the full picture looks more balanced. Onex stock reported distributable earnings of US$217 million in the quarter, up sharply from US$38 million a year earlier. Net earnings per diluted share came in at US$1.76, down from US$2.36 last year. Private equity investments generated a 1% return, while credit investments posted a 3% loss because of market pressure and credit volatility. So yes, the quarter had weak spots.
Looking ahead
The more interesting part may be Convex. Onex stock acquired this specialty insurer and reinsurer in early 2026, and it has quickly become a major value driver. Onex valued its investment in Convex at US$4 billion at the end of the first quarter, up US$158 million, or 4%, since the deal closed in February. Convex generated US$106 million in adjusted net income in the quarter, compared with a US$8 million loss a year earlier. Its combined ratio improved to 86.8% from 112.8%, meaning the insurance business moved from underwriting losses to underwriting profits.
There are catalysts, too. Onex stock completed a US$1.6 billion multi-asset continuation vehicle in the first quarter, generating US$317 million of proceeds for the company. About half came in March 2026, with the rest expected in March 2027. It also announced the sale of Emerald to Apollo Funds, which should bring Onex about US$230 million when the deal closes in the second half of 2026.
Bottom line
The best part is that Onex stock trades at just 8.7 times earnings at writing. Today, investors may be buying the company at roughly two-thirds of its stated investment capital per share. That discount gives patient investors a margin of safety, especially if Onex keeps turning private assets into cash.
Still, that complexity may be exactly why the opportunity exists. Onex trades at a large discount to its investing capital per share, owns a fast-improving Convex stake, and continues to realize cash from private equity assets. The latest headline may have looked uncomfortable, but the long-term business still looks valuable. For investors willing to look past the noise, Onex looks like one TSX stock worth buying before the market gives it full credit again.
