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What: Shares of real estate developer St. Joe
So what: Late yesterday, St. Joe announced that the Securities and Exchange Commission is launching an informal inquiry into the company's practices involving real estate asset impairments. The issue lies at the center of a fierce debate between hedge fund manager David Einhorn and Fairholme Fund's
Now what: With seriously high-caliber investors on both sides of the scuffle, it's tough to decide whom to support. Thankfully, I'm more than happy to watch this one play out from the sidelines. Now that Fairholme no longer has the standstill agreement blocking it, it seems very possible that the fund could look for ways to take St. Joe private so that it can tend to its business without the pressure of the public markets.
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