How Andrey Omelchak Targets Long-Term Value in North American Small and Mid-Caps
How fundamental investors are tuning out macroeconomic noise to ride a massive, under-the-radar North American industrial boom.
Forget trying to read the macroeconomic tea leaves or guessing when central banks will finally stop playing chicken with interest rates. While the broader market fixes its gaze on short-term volatility and geopolitical anxiety, a far more predictable, brick-and-mortar reality is quietly taking shape across North American equities. The smart money isn't timing the next sentiment swing; it is anchoring itself to a massive, structural domestic building boom that is poised to reshape the continent's economic backbone.
According to Andrey Omelchak, the CEO and CIO of LionGuard Capital Management, we are witnessing the opening chapters of a multi-year investment cycle focused on building sovereign industrial capability. From modernizing crumbling utility grids and scaling artificial intelligence data infrastructure to securing aerospace supply chains, Canada and its allies are pivoting toward localized industrial strength. For disciplined, fundamentally driven investors, this "Build Canada" macro-theme has unlocked a fertile hunting ground within the often-overlooked small and mid-cap space.
The frontline of this capital wave belongs to the companies doing the literal heavy lifting, and few illustrate this better than Badger Infrastructure (TSX: BDGI). The market continues to drastically underestimate both the duration and the sheer scale of the North American infrastructure refresh, which is estimated to clear well over US$4 trillion in announced projects over the next eighteen months. Whether the task is road widening, clean water overhauls, or carving out foundations for power-hungry semiconductor facilities, Badger Infrastructure (TSX: BDGI) cannot build its signature hydrovac trucks fast enough to satisfy demand. Because virtually every new asset is deployed into the field almost immediately, the company is capturing immense operating leverage and pricing discipline, signaling a multi-year earnings expansion that is still in its infancy.
This frantic pace of industrial development naturally creates a massive logistical domino effect, which is precisely where Civeo (NYSE: CVEO) comes into play. Trading at a severe discount relative to its modular housing peers, the company sits on thousands of idle rooms across its Canadian network. The beauty of the investment thesis here is that absorbing this vacant capacity requires almost zero new capital expenditure. As massive resource undertakings like the potential LNG Canada Phase 2 project march toward final investment decisions, this dormant capacity is positioned to be swallowed up at exceptionally high incremental profit margins. With a shareholder-aligned board aggressively purchasing shares, this high embedded leverage is quietly being primed to supercharge free cash flow.
Of course, a nation cannot secure its future by just digging trenches and housing workers; it must also defend its assets and secure its skies. This reality positions Magellan Aerospace (TSX: MAL) as a compelling, decade-long play on a global aerospace and defense upcycle. Deeply integrated into the primary manufacturing supply chains of global titans like Boeing (NYSE: BA) and Airbus (OTC: EADSY), the company is riding a wave of unprecedented Western defense procurement. As Canada pushes to fortify its domestic industrial base, Magellan Aerospace (TSX: MAL) is translating higher production volumes and superior capacity utilization into robust margin expansion, a reality that current sell-side estimates have yet to fully price in.
This same demand for specialized, secure infrastructure is fueling quieter corners of the market, such as the niche carved out by Electrovaya Inc. (TSX: ELVA). The lithium-ion developer has found its sweet spot providing critical backup power and ultra-fast charging solutions to automated logistics hubs and defense applications. When data centers and robotic facilities require immense spikes of instantaneous power, the proprietary technology from Electrovaya Inc. (TSX: ELVA) steps in, aligning the company perfectly with the automated future of domestic supply chains.
The undeniable proof that this structural cycle is already paying dividends can be found in the stunning performance of civil construction powerhouse Bird Construction (TSX: BDT). Having surged roughly 105 percent since mid-January, the stock has left skeptics wondering if it is time to take profits. However, the underlying fundamentals suggest the run is far from over. Driven by massive data center contracts and long-cycle energy developments, the company's backlog is hitting historic highs.
"Our business is aligned with some of the most significant long-cycle investment programs in Canada's history, getting underway across the country, including defense, nuclear and renewable energy, oil, gas, LNG, healthcare and educational infrastructure." — Teri McKibbon, CEO of Bird Construction (TSX: BDT)
When executive commentary perfectly mirrors the broader macro data, the investment thesis transitions from speculative to undeniable. Even when short-term market noise temporarily penalizes a stellar operator, such as specialty insurer Trisura Group (TSX: TSU), which slipped about 6 percent as the broader property and casualty sector softened, the underlying business economics tell a completely different story. Because Trisura Group (TSX: TSU) is heavily insulated within high-margin specialty lines and surety bonds rather than generic insurance, it remains uniquely positioned to underwrite the very mega-projects driving this economic renaissance.
Ultimately, the foundational blocks of this multi-year domestic rebuild are being cemented right now. The volatile macro headlines will continue to distract the crowd, but for investors looking closely, the companies holding the contracts, the specialized fleets, and the manufacturing capabilities are the ones poised to deliver the real generational returns.
Source:
- Market data and corporate insights synthesized from the official BNN Bloomberg Market Call broadcast and accompanying transcripts published on June 26, 2026.