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4w ago

Elliott Management's £850m Short Against Shell Marks Largest Bet in Nine Years

The activist hedge fund's move is part of a hedging strategy tied to its £3.5 billion stake in BP, as it pressures energy giants to prioritize oil and gas investments.

The logo of oil and gas company Shell is seen at a charging station in Brussels, Belgium November 13, 2024. REUTERS/Yves Herman/File Photo
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Elliott Investment Management’s position is worth 0.5 per cent of Shell’s stock, FCA filings reveal

Overview

  • Elliott Investment Management has disclosed an £850 million short position against Shell, the largest such bet against the company since 2016.
  • This short position, representing 0.5% of Shell's stock, is part of Elliott's strategy to hedge its £3.5 billion stake in BP.
  • Elliott is pressuring BP to shift focus from renewables to oil and gas production, aligning with BP CEO Murray Auchincloss's revised strategy.
  • Shell CEO Wael Sawan has announced cost-cutting measures aimed at closing valuation gaps with U.S. competitors like Chevron and ExxonMobil.
  • Elliott's actions, including smaller shorts in TotalEnergies and Repsol, underscore its influential role in reshaping strategies within the energy sector.