×

Starboard Value CEO Smith: Our best investment idea is Perrigo

  • Starboard Value Jeffrey Smith pitched store-brand pharmaceutical company Perrigo and Yahoo successor Altaba as his best ideas Tuesday.
  • Smith said that Perrigo also does not face the same online challenge from Amazon as many other retailers.

Starboard Value Jeffrey Smith pitched store-brand pharmaceutical company Perrigo as his best investment idea now, during a conference Tuesday.

In addition to Perrigo, Smith also advocated for Altaba, the former Yahoo, which he said will benefit from tax reform once it makes its way through Congress.

Perrigo makes versions of ibuprofen, liquid cold medicines and other products that fly under the name of retailers including CVS. The stock has fallen in recent years, but Smith said it presents strong value for investors.

"It's a beautiful business, and store-brand as a whole is actually a much larger business than any one brand," Smith said during the Delivering Alpha conference presented by CNBC and Institutional Investor in New York Tuesday.

Shares jumped more than 4 percent in morning trade.

Smith said that Perrigo also does not face the same online challenge from Amazon as many other retailers.

"While Amazon poses a real threat to many consumer companies, we actually believe it represents a very large opportunity for Perrigo, who is the store brand manufacturer," he said.

Smith is the CEO at Starboard Value. He is an activist investor and has been able to influence a number of companies by getting board members appointed. This year he placed five members on the board of Perrigo in addition to two new ones who came on late in 2016.

Earlier this year, he stressed the need for tax reform, particularly in allowing companies to bring back profits stored overseas at lower rates.

Smith said Altaba would be well-positioned to benefit once Congress agrees on a tax plan. In addition to repatriation, Republicans and the Trump administration are pushing for lower corporate and personal taxes.

This version clarifies an earlier accounting of the new board members at Perrigo.

Previous Years

  • CNBC and Institutional Investor hosted the 7th Annual Delivering Alpha Conference on September 12, 2017.

  • Delivering Alpha 2017 stage, signage

    Meet the 2017 advisory board of Delivering Alpha, which takes place on September 12, 2017 at The Pierre in New York City.

  • The stage at Delivering Alpha 2016 in New York on Sept. 13, 2016.

    CNBC and Institutional Investor hosted the 6th Annual Delivering Alpha Conference on September 13, 2016.

About

CNBC and Institutional Investor are pleased to host the 8th Annual Delivering Alpha Conference in New York City on July 18, 2018. Please take note of the new month for 2018. Delivering Alpha continues to be an incomparable who’s who of the investor community with leading asset manager and institutional investors offering candid views along with illustrious political and economic commentators appearing in short segments moderated by CNBC talent and II editors.

To request additional information on Delivering Alpha, please contact lyao@ttivanguard.com.