Third Point Invests in Kenvue Amid Activist Pressure

Daniel Loeb's hedge fund, Third Point, has acquired a stake in Kenvue, the $44 billion consumer healthcare company known for brands like Band-Aid and Tylenol, signaling increased activist investor pressure on the firm. Kenvue, spun off from Johnson & Johnson two years ago, has already faced calls for strategic changes from activist investors Starboard Value and Toms Capital, including demands for reviews of brand strategy and pricing, as well as consideration of a potential sale of the company or some of its assets. News of Third Point's investment boosted Kenvue's shares by over 2% before settling at $23.01. While Third Point’s exact intentions remain unclear, its history of proactive activism suggests it may push for significant changes to enhance shareholder value. Despite a strong portfolio, Kenvue's net sales remained flat at $15.5 billion in 2024 and its stock price is still down 13.2% from its 2022 IPO, though it is up 8% this year. The involvement of multiple activist investors may lead to strategic shifts or management changes as Kenvue seeks to respond to investor pressures.