Kenvue (KVUE, Financial) was featured as a new holding in the Oakmark Fund's 1st-Quarter Commentary 2024. The fund, led by William C. Nygren, noted Kenvue's position as the largest standalone consumer health company following its separation from Johnson & Johnson. Despite owning market-leading brands such as Neutrogena and Tylenol, Kenvue's first year as a public entity was marred by litigation and market share losses in certain categories. This has led to the stock trading at a significant discount to the market and other consumer health companies. The fund sees potential for Kenvue to enhance efficiency and reinvest cost savings into product development and marketing, which could bolster growth and brand equity.
"We see an opportunity for the company to improve efficiency and re-invest the cost savings into increased product development and marketing, which should help improve its growth and brand equity." — William C. Nygren, Oakmark Fund, Q1 2024 Fund Letter
Read full letter at gurufocus Bill Nygren's Oakmark Fund 1st-Quarter Commentary 2024 Q1 page.
