Tiffany & Co. (NYSE: TIF) shares may be well off or their 52-week highs but that isn’t discouraging one large activist investor from building up a sizable stake and banking on a turnaround. Shares in the jeweler rose almost 3 percent today after Nelson Peltz’s Trian Fund Management raised its stake in Tiffany from 5.54% to 7.9%. Shareholders are hoping that the activist investor can take action to help the company turn itself around and restore confidence.

Nelson Peltz is well known for his involvement in companies like Wendy’s International (NYSE: WEN) and H.J. Heinz (NYSE: HNZ), which rose 38% and 22% respectively since his involvement. In both instances, he took actions designed to unlock value by shedding certain business units and improving operating efficiency. Many are hoping that the activist can do the same for Tiffany’s, which has been struggling in a tough retail environment with sinking margins.

Tiffany’s recently announced overseas sales that were more robust than domestic sales with an 18% increase in net income in Europe and a 30% increase in Asian-Pacific countries. However, these numbers failed to impress the market who were looking for something more – shares plunged from around $40 per share to below $34 per share earlier this week.

In the end, Tiffany’s is a stock that is clearly in need of some help. Nelson Peltz is well known for taking action to unlock hidden value within companies and many shareholders are hoping that he will do the same for this company and help shareholders turn around their investments in the company. Combined, these factors make TIF a stock worth watching!

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