Fund Manager Smackdown!

It's fun when really rich guys fight. Especially when they do so publicly: there are deep pockets, the potential for ugly proxy fights — and, best of all, snarky slide shows.

Here's the background on the players: David Einhorn is a hedge fund manager, best known for making a killing shorting Lehman Brothers before they went bankrupt; Bruce Berkowitz is an equity fund manager, best known for being named Morning Star's Domestic-Stock Fund Manager of the decade.

According to the New York Post, the guys are engaged in a full on smackdown over a land development company called St. Joe Company.

The short version of the story is that Berkowitz is long and Einhorn is short: Berkowitz is St. Joe's largest shareholder, and a true believer in the project; meanwhile, Einhorn is aggressively pitching the notion that the company is wildly overvalued — and he stands to benefit handsomely with his short position if the stock price falls.

So Einhorn created a slideshow. The Title? "Field of Schemes — If You Build It They Won't Come"


Here's an innocent looking slide: Just a reference to an executive bio, right?


And who doesn't love Mickey Mouse — especially in a wizard's hat?

(Wait for it… Wait for it…)




Nantucket: Gorgeous!


Hilton Head: Beau-tee-ful!


Napa: Simply to die for.



JoCo: Not so much…


But if you want to see something really ugly…

Take a look at these numbers. What do they say about the long term

profitability potential for real estate development at JOE?


Will the bears ultimately have their way with JoCo?

It's difficult to say. According to an article in The Wall Street Journal, Einhorn believes that the $2.27 billion publically traded

company should be trading around — or below — ten bucks a share.

That's nowhere near its current $20-$28 trading range.

Berkowitz has yet to respond with a snappy slideshow of his own — but

he did buy 135,600 shares after Einhorn's presentation.

By the way, if you want to check out the full Einhorn slideshow, Bess Levin at DealBreaker is serving it up.


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