U.S. activist investor Elliott Investment Management has taken a short position against British oil major Shell (NYSE:SHEL) as part of a global hedging program.
The move, which was first reported by British newspaper The Times on Thursday, comes shortly after it emerged Paul Singer’s hedge fund had taken a near 5% stake in Shell’s struggling rival, BP (NYSE:BP).
Elliott is said to have amassed an £850 million ($1.1 billion U.S.) bet against Shell, The Times reported, citing filings with the Financial Conduct Authority.
The position is reportedly worth 0.5% of Shell’s stock and is thought to represent the biggest short position disclosed against the energy major in nearly a decade. A short position refers to a bet that a company’s stock will fall in value.
Shares of Shell traded 0.5% lower at around 11 a.m. London time (7 a.m. E.T.) on Friday. The London-listed stock is up around 13.6% year-to-date. They opened Friday trading in New York -down 59 cents to $69.83.
Earlier this month, it was reported that Elliott had taken a short position of around 670 million euros ($722 million U.S.) in French oil giant TotalEnergies. A spokesperson for TotalEnergies did not immediately respond to a request for comment on Friday.