Third point buys stake in Shell

Hedge fund Third Point has built a large stake in Royal Dutch Shell. Yahoo Finance's Julie Hyman weighs in.

Video transcript

JULIE HYMAN: And, guys, as we look at this latest move by Third Point, I can't help but think of Engine No. 1's activist efforts at ExxonMobil. And it does seem as though there is this real sea change and shift within the fossil-fuel industry-- and I should say surrounding the fossil-fuel industry to try to force change here.

Shell also under fire from the Dutch government, which is forcing it to cut emissions more dramatically than the company itself had planned. And, Sozz, it seems like there is this real pile on, but at the same time, some investors like Dan Loeb, like Engine No. 1 also trying to find opportunities here in this situation.

BRIAN SOZZI: Yeah, and they're going to continue. I mean, so many of these hedge funds, they're working on these decks right now. And a lot of these oil-focused companies, they better be prepared because it could be a real horrible 2022 for them.

But I do think, Julie, it's a little bit different case between Shell and ExxonMobil. When Exxon attacked-- or when Engine attacked Exxon, you got the sense that Exxon's management team, CEO Darren Woods, its board of directors, I mean, those guys completely out to lunch. A bunch of lifers there on that management team really continuing to invest aggressively into a cycle that really doesn't exist.

Shell a little bit of a different case. In September, they sold some assets to ConocoPhillips for about $9 and 1/2 billion. And as you mentioned, a Dutch court-- the Dutch courts ruled that they had to cut their emissions by 45% to 2030. And also Shell's stock has been performing pretty well. So a little bit of a different case but really under the same-- under the same category, really.

JULIE HYMAN: Yes. And to your point, definitely expect more news on this front, both with these companies and perhaps others. We'll see what comes out of that hearing today too.