1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Adage Capital Management increased its stake in Exxon Mobil Corporation (NYSE:XOM) by 34% in Q3 2021. The company accounted for 1% of Phill Gross’s portfolio.
Exxon Mobil Corporation (NYSE:XOM) is one of the top options for income investors because it is one of the stable and reliable dividend aristocrats in history. In the last 39 years, the Texas-based company has increased its annual payouts, and it now pays its shareholders an annual dividend of $3.52 per share.
Overall, 64 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes Exxon Mobil Corporation (NYSE:XOM) at the end of September 2021. Florida-based investment firm GQG Partners is the largest shareholder of the company with a total stake of $1.56 billion.
Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since the production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
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