AEGIS Financial Corp Expands Its Vermilion Energy Position in Q3 2025

2025-12-26 04:30:16

The Investment Move

AEGIS Financial Corp made a significant addition to its energy portfolio in Q3 2025, purchasing an additional 350,000 shares of Vermilion Energy (NYSE: VET). According to SEC filings from November 12, 2025, this move brought the fund’s total VET holding to 870,492 shares, valued at approximately $6.80 million at quarter-end. The new investment represents a $3.01 million increase in position size.

For context, this addition equals 1.03% of AEGIS’s 13F reportable assets under management (AUM), and places Vermilion Energy at 2.6% of the fund’s total portfolio—a notable position but outside the top five holdings.

About Vermilion Energy

Vermilion Energy is a Calgary-based upstream oil and gas producer with operations spanning North America, Europe, and Australia. The company generates revenue through petroleum and natural gas exploration, development, and production, serving utility companies, industrial users, and energy distributors across international markets.

Trading at $9.08 per share as of November 11, 2025, Vermilion Energy has a market capitalization of $1.40 billion and annual revenue (TTM) of $1.48 billion. The stock offers a dividend yield of 4.02%, which has historically been one of its attractive features for income-focused investors.

Historical Context

Vermilion Energy’s share price reflects the volatility of the energy sector. The stock peaked at $69 per share in 2014 before declining to $3 during the 2020 market downturn. Its subsequent recovery to around $8-$9 suggests the company has regained investor confidence, though it remains below historical highs.

AEGIS’s Position in Context

At quarter-end, AEGIS Financial Corp maintained total U.S. equity positions of $261.32 million across 26 holdings. The fund’s top five positions at that time were:

EQX (NYSEMKT): $53.99 million (20.66% of AUM)
HNRG (NASDAQ): $39.36 million (15.06% of AUM)
PDS (NYSE): $25.49 million (9.75% of AUM)
NGS (NYSE): $18.78 million (7.19% of AUM)
PBF (NYSE): $18.72 million (7.16% of AUM)

The fund’s portfolio reveals a clear focus on energy, oil, and mining sectors, with Vermilion Energy representing a mid-tier conviction position.

Performance and Market Perspective

As of mid-November 2025, Vermilion Energy shares were down 2.05% over the preceding year, underperforming the S&P 500 by 17.91 percentage points. However, the company’s stable production during 2025 and diversified geographic asset base provide some cushion against commodity market volatility.

The fund’s decision to increase its stake suggests confidence in Vermilion Energy’s business model and potential for market share expansion within the upstream oil and gas sector. The move repositioned Vermilion from the lower half of AEGIS’s portfolio to the upper portion, indicating elevated conviction in the company’s trajectory and management execution.

Key Takeaway

AEGIS Financial Corp’s 350,000-share purchase reflects ongoing strategic interest in Vermilion Energy as an upstream energy producer with international diversification. While any investment decision should be based on individual research and risk tolerance rather than institutional moves alone, Vermilion Energy’s operational resilience during 2025 and substantial dividend yield have maintained its appeal within energy-focused portfolios.

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