Hedge fund Starboard Value has acquired a stake in Kenvue, the consumer products company known for its brands like Band-Aid, Listerine, and Tylenol, which went public last year. Two sources familiar with the matter disclosed the news on Sunday, although the specific size of Starboard’s stake remains undisclosed.
Kenvue, which was previously part of Johnson & Johnson, has experienced an 18% decline in its stock price since its public listing in May 2023. The stock closed at $21.72 per share on Friday, giving Kenvue a market capitalization of approximately $41 billion.
According to one of the sources, Starboard may be urging Kenvue to reevaluate its brand positioning and pricing strategies to enhance its performance. The individuals involved were not authorized to discuss the hedge fund’s positions publicly and requested anonymity. A representative from Kenvue was not immediately available for comment.
This news, first reported by the Wall Street Journal, comes just two days before the 13D Monitor Active-Passive Investor Summit, where Starboard’s Chief Investment Officer, Jeffrey Smith, is scheduled to present investment ideas.
At the summit, Starboard is also expected to outline its new roughly $1 billion investment in pharmaceutical giant Pfizer. The hedge fund has indicated a desire for Pfizer to improve its financial performance. Smith met last week with Pfizer CEO Albert Bourla and the company’s lead independent director. Pfizer, which was pivotal in delivering the world’s first COVID-19 vaccine, has seen its stock price drop by nearly 50% since 2021 when vaccine demand peaked.
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