Investor Tom Sandell declared Ethan Allen his best investment idea at a hedge-fund conference in New York on Wednesday. The investor, who runs Sandell Asset Management, referred to the furniture chain as an ideal target to be acquired by private-equity firms. Shares of Ethan Allen soared more than 5% in midday trade after the hedge fund investor’s comments, which were made at Delivering Alpha, a hedge fund conference sponsored by CNBC and Institutional Investor. The Swedish-born investor Sandell noted that about half of Ethan Allen’s assets are real estate related, which make it a prime target for private-equity investors, who tend to use debt to help generate returns on their investments.
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