Core Insights - The market performance in 2025 has been predominantly driven by large-cap growth equities, particularly those associated with artificial intelligence (AI) [1] Group 1 - Large-cap growth equities are benefiting significantly from the AI theme, indicating a strong investor interest in this sector [1] - There is a potential oversight by investors regarding other key ingredients that could influence market performance beyond just AI [1]

Company Overview - Vermilion Energy Inc. (VET) is a Canadian oil and natural gas producer, with the majority of its production in Canada, complemented by higher-margin production in Australia and Europe [2][3]. Investment Strategy - The company focuses on turnaround investments in the natural resource sector, emphasizing value to provide downside protection while still allowing for significant upside potential [1][3]. - The investment portfolio has achieved a compounded annual growth rate of 34% over the past seven years, indicating strong performance in the sector [1]. Market Conditions - The current investment focus is driven by favorable monetary and fiscal policies, underinvestment in the sector, and attractive valuations, which present opportunities for investors [3].

Group 1 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-4 years, emphasizing value for downside protection and upside participation, achieving a compounded annual growth rate of 34% over the last 7 years [1] - Whitecap Resources, a Canadian oil and natural gas producer, has become a large-cap producer following its acquisition of Veren, which closed in May of this year [2] - The investing group targets companies with quality characteristics trading at depressed valuations, allowing participation in the upside of natural resource investing while mitigating extreme drawdowns [3]