Daniel Loeb’s hedge fund, Third Point, is building a position in consumer healthcare company Kenvue, according to a report by the Financial Times citing sources familiar with the matter, adding fresh momentum to investor calls for strategic changes at the $44bn firm.
Shares in Kenvue, the maker of household brands including Band-Aid and Tylenol, rose more than 2% during Friday’s trading session following news of Third Point’s investment before closing at $23.01.
Kenvue, which was spun out of Johnson & Johnson two years ago, has already been under activist pressure. In March, it averted a proxy fight with Starboard Value by appointing the firm’s founder and CEO, Jeffrey Smith, to its board. Starboard has pushed Kenvue to review brand positioning and pricing strategies to drive performance improvements.
More recently, Toms Capital Investment Management also took a stake, urging the company to consider broader strategic alternatives, including a potential sale of the business or parts of it, according to sources.
It remains unclear how significant Third Point’s stake is or whether the hedge fund has directly engaged with Kenvue’s board or management. Third Point declined to comment on the matter. Kenvue, in a statement, said it routinely engages with investors but does not comment on individual discussions, emphasising its commitment to delivering sustainable, profitable growth and enhancing shareholder value.
While Kenvue boasts a portfolio of leading brands like Aveeno, Listerine, and Zyrtec, net sales were flat at $15.5bn in 2024. Although the share price is up 8% year-to-date, it remains down 13.2% from its initial listing in May 2022.
Third Point, which manages approximately $12bn in assets, returned 25% in 2024 — a sharp rebound from a 4% gain in 2023 and a 22% loss in 2022. The firm has a history of activist engagements, having previously pressured companies like Advance Auto Parts, Walt Disney, and Bath & Body Works to unlock shareholder value.
