Elliott Management, a prominent hedge fund, has acquired nearly a 5% stake in the German energy company RWE. The investment group is urging RWE to enhance and speed up its share buyback program.
RWE, recognized as one of Europe’s major power producers, has recently decided to cut its investment in green technologies by €10 billion over the next five years. This decision comes amid challenges posed by the Trump administration’s stance against offshore wind energy, which adds uncertainty to renewable energy investments.
Elliott has been increasing its holdings in RWE since at least last year. On Monday, they confirmed their significant economic interest in the firm.
This investment marks another significant move by Elliott in the European energy sector, following its stake in BP, a company it has pressured to shift away from green energy initiatives.
Last week, RWE announced its plan to reduce spending on renewable energy projects. Elliott welcomed this decision, describing it as “an important first step towards more disciplined capital allocation.” However, the hedge fund criticized RWE for not being clearer about boosting returns for shareholders and pointed out that the company is still undervalued.
“With the announced reduction in capital spending and RWE’s ongoing undervaluation, we see a strong opportunity to significantly increase and accelerate the existing share buyback program,” Elliott stated.
RWE has been pulling back on its renewable investments, especially after Donald Trump won the U.S. presidency. A couple of years ago, the company invested nearly $7 billion to acquire Con Edison Clean Energy Business, which manages solar and wind projects in the United States.
In the past year, RWE’s shares have risen by 3%, and they have climbed approximately 9% in 2025. Currently, RWE’s market value is around €24 billion, with shares increasing by 2.5% in early Monday trading.
Recently, RWE reported earnings of €5.7 billion for 2024 and confirmed its mid- to long-term financial goals, despite the reduced capital expenditure.
Earlier this year, Elliott took an almost 5% stake in BP and has been advocating for a stronger focus on oil and gas. Additionally, they recently established a €670 million short position in TotalEnergies, which serves as a hedge against their long investments in the energy sector.