Last week famed hedge-fund manager David Einhorn of Greenlight Capital disclosed he is shorting Florida real-estate developer St. Joe Co., arguing that the company's properties, largely undeveloped land in the Panhandle, are worth only a fraction of what the company says they are worth.
Given Mr. Einhorn's notoriety, mainly for his bet against Lehman Brothers, any short position he takes will attract attention. But St. Joe happens to be a major holding of another famed money manager, Bruce Berkowitz of Fairholme Capital Management. Fairholme holds 29% of the company's stock.
Mr. Berkowitz's argument for St. Joe boils down to this: He trusts the company's numbers.