Jim Chanos, Kyle Bass Rip Oil And Pharma At SALT 2015

It's midway through Day 3 of SALT 2015, presented by SkyBridge Capital, and a handful of publicly-traded names have been discussed by the biggest hedge fund managers on the planet.

Jim Chanos Short Royal Dutch Shell, Chevron

Chanos began his presentation with a slideshow covering his short thesis on oil and gas giant Royal Dutch Shell plc (ADR) RDS. In particular, he noted how the company's free cash flow has "begun to dramatically drop off," before adding that Shell hasn't build any reserve replacements.

BG Group plc (ADR) BRGYY, which was part of a pending $70 billion acquisition by Shell last month, has its own problems as well, according to Chanos. Simply, the company's "financials just don't look very good," he said.

Chanos then mentioned that the key in the Shell-BG deal: Shell is betting on LNG and Brazilian oil, because those are two of BG's strongest businesses.

BG announced a joint venture with Petroleo Br Sp ADR PBR, or Petrobras, in 2009.

The issue, as Chanos sees it, is two-fold. He says the Petrobras corruption scandal is "deeper" than most thought, and warns that Shell is using "very aggressive" energy price forecasts.

His conclusion? The 2015 reality is "not very pretty."

Chanos also mentioned he's currently short Chevron Corporation CVX, but didn't offer up any further details.

Kyle Bass Rips Pharma

Kyle Bass, of Hayman Capital, took the stage next and discussed the biopharmaceutical space. Talking Teva Pharmaceutical Industries Ltd (ADR) TEVA, he noted that the company's differentiated dosage schedule for its Multiple sclerosis drug was all that protects 55 percent of its earnings before interest and taxes.

Next Bass mentioned his firm has a long position in Perrigo Company PRGO, and said the company could be bought by someone else other than Mylan NV MYL.

One potential acquirer might be Abbott Laboratories ABT, he added.

Near the end of his presentation, Bass wasn't afraid to call out the entire industry. Seven years ago, he said, pharmaceutical companies spend 18 percent of their revenue on research and development. In 2015, that figure is 13 percent, but the industry's market size hasn't diminished.

Why? Drug prices are increasing at a rate that's "literally out of control."