Activist investor Starboard Value has fully exited its position in Pfizer Inc. (PFE.N), according to a regulatory 13-F filing released Friday, ending its campaign aimed at boosting the pharmaceutical giant’s shareholder value.

The hedge fund sold approximately 8.5 million Pfizer shares during the third quarter, reducing its stake from 15.4 million shares at the end of Q4 2024. Starboard’s high-profile engagement with Pfizer began last year when it announced a roughly $1 billion investment in the company, during a period when Pfizer shares were trading at roughly half of their pandemic-era highs.

Starboard’s Activist Campaign

Starboard, led by founder Jeffrey Smith, had pushed for management accountability and strategic changes to improve Pfizer’s performance. At an industry conference, Smith criticized Pfizer’s board for underperformance, signaling the hedge fund’s intent to influence corporate governance and operational decisions.

To advance its agenda, Starboard even reached out to former Pfizer executives, including ex-CEO Ian Read, to lend support to the campaign. However, cooperation from these executives did not materialize, and the activist push eventually fizzled.

Since Starboard’s initial investment, Pfizer’s market value has declined from approximately $162 billion in October 2024 to $142 billion, reflecting both market pressures and the challenges the fund faced in implementing its proposed changes.

Broader Activist Investments

Starboard remains one of the most active activist hedge funds in the market. In 2025, it initiated positions in several publicly traded companies, including:

• TripAdvisor (TRIP.O) – online travel site
• Rogers (ROG.N) – engineering firm
• BILL Holdings (BILL.N) – financial automation software company, where Starboard successfully secured a board seat

The hedge fund also sold 2.5 million shares in Fortrea Holdings (FTRE.O) during the third quarter. Fortrea, a contract research organization spun out of Laboratory Corp in 2023, has seen its share price decline nearly 50% since Starboard disclosed its investment.

Implications for Shareholders and the Pharma Sector

Starboard’s exit from Pfizer highlights the challenges activist investors face in driving change in large-cap pharmaceutical companies. Despite strategic pressure and high-profile campaigns, achieving operational or governance shifts in such heavily regulated sectors can be difficult.

The Pfizer divestment, combined with Starboard’s broader portfolio adjustments, underscores a trend among hedge funds to reassess activist positions when market performance or cooperation from management falls short of expectations.