Why AEGIS Financial Corp Is Loading Up on Vermilion Energy VET Stock—And What It Means for Your Portfolio

Energy investors are paying attention to what institutional funds are doing, and AEGIS Financial Corp just made a bold move. The fund increased its stake in Vermilion Energy (NYSE: VET) by 350,000 shares during Q3 2025, bringing its total position to 870,492 shares worth approximately $6.80 million.

The Numbers Behind the Move

This isn’t just a casual add. AEGIS boosted its VET holding by $3.01 million in quarter-end value, representing a 1.03% increase in the fund’s 13F reportable assets under management. Now VET represents 2.6% of the fund’s total AUM—a meaningful allocation that signals confidence in the company’s direction.

For context, AEGIS manages $261.32 million across 26 U.S. equity holdings, with its portfolio heavily weighted toward energy and natural resources. Top positions include EQX ($53.99 million), HNRG ($39.36 million), and PDS ($25.49 million). The new VET weighting places it outside the top five, yet the aggressive buying suggests AEGIS sees undervalued upside.

What’s the Investment Thesis?

Vermilion Energy operates as a diversified upstream oil and gas producer with significant international presence spanning North America, Europe, and Australia. Unlike pure-play energy companies, Vermilion combines exploration, development, and production operations across multiple geographies—reducing single-region risk.

The company’s business model hinges on commodity prices and production efficiency. With a market cap of $1.40 billion, revenue of $1.48 billion (TTM), and a 4.02% dividend yield, VET appeals to income-focused investors seeking exposure to energy without overconcentration in any single basin.

The Performance Context

As of November 11, 2025, VET traded at $9.08 per share, down 2.05% over the trailing 12 months. This underperformance relative to the broader S&P 500 (lagging by 17.91 percentage points) has created what contrarian investors view as opportunity. The stock has recovered significantly from its 2020 lows of $3, though it remains well below the 2014 peak of $69.

AEGIS’s timing suggests the fund believes this recovery has further runway. Vermilion’s stability through 2025, combined with its integrated business model and global asset base, provides resilience in volatile commodity markets.

Should You Follow the Money?

Institutional buying is informative but not prescriptive. However, several factors support AEGIS’s conviction:

Dividend resilience: The 4.02% yield provides downside cushion and regular income regardless of stock price movements.

Geographic diversification: Operations across multiple regions reduce geopolitical risk and provide multiple demand drivers.

Upstream positioning: As commodity prices stabilize or recover, upstream producers like Vermilion typically benefit from margin expansion.

Valuation angle: The fund’s shift of VET from its lower holdings to the upper half of its portfolio indicates management believes the risk-reward has shifted favorably.

The Bottom Line

AEGIS Financial Corp’s 350,000-share increase in Vermilion Energy reflects institutional confidence in the energy sector’s trajectory and this particular company’s execution. While dividend yield and international production assets make VET attractive to certain investor profiles, individual circumstances matter more than fund positioning. The move is worth monitoring as a signal that sophisticated energy-focused investors see value at current levels.