Tiffany Sparkles in Nelson Peltz Hedge Fund

Chidem Kurdas

Diamonds are really forever, it turns out, despite a Great Recession and all. That’s how it looks from the stake activist investor Nelson Peltz took in Tiffany & Co.

His firm, Trian Fund Management, bought some 7.5 million shares in the luxury retailer in early 2007. In retrospect that does not seem the best time to invest in a jewelry seller.  But in 2008, after the price dived, Mr. Peltz went ahead and acquired more shares.

Trian co-founder Peter May got a seat on Tiffany’s board. In March 2009, Trian sold 2.3 million Tiffany shares but remained the company’s largest shareholder.

Despite that paring down, the value of the Tiffany holding has recovered more robustly than the other big investments in the Trian portfolio. It now  looms larger in the flagship fund than Heinz, the condiment maker where Mr. Peltz won a seat on the board after a proxy battle in 2006.

The fund’s Tiffany holding was worth about $363 million as of April, up from  $171 million a year ago.

Wendy’s Arby’s Group is still the largest Trian investment, as it has been for years. But Tiffany is the second largest. Four companies – Wendy’s, Tiffany, Heinz and the money manager Legg Mason – represent about $1.25 billion of the Trian fund’s assets.

So, hamburgers, ketchup, diamonds and mutual funds—it’s not an obvious portfolio, but diversified in its own way.

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3 Responses to “Tiffany Sparkles in Nelson Peltz Hedge Fund”

  1. Maria Sharapova Hairstyle at Paloma Picasso Tiffany & Co Earrings Event Says:

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  2. Peltz Stays with Financials « HedgeFundSmarts Says:

    […] Trian’s top three holdings are Wendys Arbys Group, Legg Mason and Tiffany & Co. […]

  3. Tiffany Glitter Continues for Peltz « HedgeFundSmarts Says:

    […] bubbles were collapsing. Jewelry businesses did not look promising amid the recession, but he went on acquiring more Tiffany stock in 2008—of course, it was cheap […]

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