On Wednesday, David Einhorn made the announcement to the public that he’s shorting St. Joe.At the recent Value Investing Conference, which was attended by over 500 people and covered by dozens of media outlets, Einhorn gave an emphatic 139-page presentation on why he’s shorting St. Joe, a real estate development company.
Einhorn apparently emailed Fairholme Capital Management’s Bruce Berkowitz, a mutual fund manager who’s a loud fan of and investor in St. Joe, before he gave his presentation to ask if Berkowitz would debate him about the stock.
Berkowitz apparently never responded – until yesterday, when he told Einhorn what he thinks in a new filing with the SEC.
Turns out, as soon as news broke that Einhorn was shorting St. Joe, Berkowitz went and bought 135,600 extra shares.
Now we know why Berkowitz never responded to Einhorn. Berkowitz thinks Einhorn’s an idiot for this call and he doesn’t want to convince Einhorn otherwise, he wants to make money off him.
Here’s the SEC filing, which is basically a very formal “F U” to David Einhorn.
For what it’s worth, everyone loved Einhorn’s presentation – including fellow hedge fund manager Whitney Tilson.