"Investors always seem to be looking for the next best thing, and much attention has recently turned toward emerging markets," says fund expert Walter Frank.

In MoneyLetter, the advisor explains, "In a recent BusinessWeek interview, Mark Mobius, emerging markets portfolio manager at Franklin Templeton funds, noted that one reason investors have flocked to equities -- and emerging markets in particular -- is a lack of yield on dollar deposits in the US.

Boston-based ice cream king and restaurateur Friendly's (AMEX: FRN) has agreed to be acquired by Sun Capital Partners for $337.2 million, much of which involves the assumption of the company's sizable debt load. Shares traded up more than 5% on the news, and currently trade $15.13 versus the buyout price of $15.50.

The company hasn't been particularly profitable in years and, although I'm sure Sun will be able to ring out some efficiency, it's hard to see this as being that great of a long-term acquisition. Friendly's has been around since 1935 and, based on a recent visit, it seems like the average customer has been too. The restaurants' gaudy decor (Americana, I know...) will never attract younger, hipper, more affluent customers, and you have to wonder: Will the 30 and 40-somethings of today replace Friendly's current 65+ customer base when they reach that age? I doubt it. Friendly's is a relic, and it seems increasingly irrelevant in today's restaurant industry. That's probably why the company went to a private equity fund (Sun also owns Bruegger's and Souper Salad) rather than a competitor.

Still, this is a big victory for Sardar Biglari and his Lion Fund. When they first took a position and began agitating for a sale months ago, I was skeptical. But he's proven me wrong with a very strong return on his investment in the company. I just wonder how this one will work out for Sun.