High Conviction: Hillsdale Investment Boosts Enerflex Stake by 436% With 3.8 Million Share Purchase

Hillsdale Investment Management made a significant purchase of Enerflex (NYSE:EFXT) shares, increasing its stake by $43.76 million, according to a November 10, 2025, SEC filing.

What happened

According to a filing with the Securities and Exchange Commission dated November 10, 2025, Hillsdale Investment Management increased its reported holding in Enerflex by 3,824,093 shares over the third quarter, bringing its total position to 4,701,464 shares. The value of the fund’s stake in Enerflex rose to $50.69 million at quarter-end.

What else to know

• This was a buy; the Enerflex stake now represents 1.53% of Hillsdale’s reported U.S. equity assets.
• Top holdings after the filing:
  • NYSE:RY: $125.92 million (3.80% of AUM)
  • NYSE:CM: $94.66 million (2.86% of AUM)
  • NYSE:TD: $86.95 million (2.63% of AUM)
  • NASDAQ:SHOP: $79.73 million (2.41% of AUM)
  • NYSE:BNS: $70.77 million (2.14% of AUM)
• As of November 7, 2025, Enerflex shares were priced at $13.39, up 85.7% over the past year, with a 73.52 percentage point alpha versus the S&P 500.

Company Overview

Company Snapshot

• Offers natural gas compression systems, oil and gas processing equipment, refrigeration systems, and energy transition solutions, with rental and after-market services supplementing core product sales.
• Generates revenue through equipment manufacturing, modular system installations, long-term service agreements, and compressor rentals, providing both capital equipment and recurring service income.
• Serves a global customer base including independent oil and gas producers, integrated energy companies, midstream operators, power generators, and carbon capture participants across North America, Latin America, EMEA, and Asia-Pacific.

Enerflex is a leading provider of engineered systems and services for the global energy sector, with a strong presence in natural gas compression and processing solutions. The company leverages its expertise in modular equipment and after-market services to deliver tailored offerings that support energy transition and operational efficiency for clients. Its diversified revenue streams and broad geographic footprint position Enerflex as a key partner for energy infrastructure and decarbonization initiatives worldwide.

Foolish take

Hillsdale Investment Management increased its Enerflex stake by an eye-popping 436% in Q3 2025, representing a significant institutional position increase rather than routine portfolio rebalancing. The timing is noteworthy, as Enerflex recently reached a new 52-week high and received positive analyst coverage, with Royal Bank of Canada raising its price target from $15 to $17 in early November. Hillsdale appears to be expressing strong conviction in Enerflex’s prospects in the natural gas infrastructure sector with this major buy.

Enerflex stock is currently experiencing strong momentum after a challenging period, but it remains volatile. The stock recently reached an all-time high of $13.78 and has delivered a 48% gain over the past year and a remarkable 92% return over the past six months. However, investors must absolutely consider Enerflex’s beta of 2, meaning its share price is 100% more volatile than the S&P 500. This means when energy markets rally, Enerflex tends to surge dramatically, but when sentiment sours, the stock can decline just as sharply.

For more aggressive investors who can tolerate price swings, the current momentum combined with positive analyst sentiment and strong fundamentals may present opportunity. But hold on tight and be prepared for potentially dramatic short-term price movements in either direction.

Glossary

13F assets under management (AUM): The total value of U.S. equity holdings reported by an institutional investment manager in quarterly SEC Form 13F filings.
Alpha: A measure of an investment's performance relative to a benchmark index, showing excess return above the benchmark.
Energy transition solutions: Products or services that help shift energy systems from fossil fuels to cleaner, more sustainable sources.
Modular system installations: Pre-fabricated equipment units that can be quickly assembled on-site for energy infrastructure projects.
After-market services: Support and maintenance provided to customers after the initial sale of equipment or systems.
Compressor rentals: Leasing of gas compression equipment to customers, providing recurring income for the provider.
Midstream operators: Companies that transport, store, and process oil and gas between production and end users.
Capital equipment: Large, long-lasting machinery or systems used in industrial operations, typically requiring significant investment.
Decarbonization initiatives: Efforts aimed at reducing carbon dioxide emissions, often through cleaner technologies or operational changes.
TTM: The 12-month period ending with the most recent quarterly report.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Bank Of Nova Scotia and Enerflex. The Motley Fool has a disclosure policy.