A Look Into Billionaire Tom Sandell’s M&A and Activist Bets For 2016

Ethan Allen Interiors Inc. (NYSE:ETH)

– Shares Owned by Sandell as of December 31: 1.35 Million

– Value of Holding as of December 31: $37.66 Million

Ethan Allen Interiors Inc. (NYSE:ETH) also was among Sandell’s top picks for the first quarter of 2016, even though the firm trimmed its position by 2% over the quarter. The fund went activist on Ethan Allen Interiors and over the October-December period, Mr. Sandell battled for some seats on the company’s Board. However, in late-November, the company’s shareholders voted against all six of Sandell’s candidates. And, yet again, this was an M&A play, in the sense that Sandell was seeking to get seats at the Board to move forward its plans to either spin-off or sell the company’s real estate assets. Despite the fact that the fund’s plans have not been successful so far, shares of Ethan Allen have gained more than 2% since the beginning of the year. Chuck Royce’s Royce & Associates held 2.79 million shares of the company by February 8.

Bob Evans Farms Inc (NASDAQ:BOBE)

– Shares Owned by Sandell as of December 31: 1.4 Million

– Value of Holding as of December 31: $54.6 Million

Finally, Bob Evans Farms Inc (NASDAQ:BOBE) ranked as Sandell’s most valuable stake as of December 31. The stock, which performed poorly over the fourth quarter of 2015 and slid by 10.38%, has advanced by almost 8% since the start of 2016. Back in December, Sandell sent a strong-worded letter to the company’s Board, exhorting it to vote for a separation or sale of its food business, BEF Foods. Another fund betting on the company is Rob Citrone’s Discovery Capital Management, which disclosed ownership of 1.82 million shares in its latest 13F filing.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.