Hedge Fund Titan Einhorn Short St. Joe

Shares of Florida-based real estate company St. Joe tank after David Einhorn said the company would take more write-downs.
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NEW YORK (

TheStreet

) --

St.Joe

(JOE) - Get Report

, the Florida-based real estate development company, plunged nearly 10% after hedge fund manager

David Einhorn

said he was short the stock.

At a value investing conference in New York on Tuesday, Einhorn warned that the real estate company would have to make more writedowns, as its residential development plans were heading for trouble.

Einhorn singled out the company's RiverTown development. "The proposed development site looks more like a moonscape than a luxury development," said Einhorn, according to a

Reuters

report.

Einhorn manages

Greenlight Capital

, which had $3.7 billion under management in June. He is best known for shorting shares of Lehman Brothers ahead of its bankruptcy.

More than 8 million shares changed hands compared to an average volume of 700,000. The stock was trading lower by 9.1% at $22.31.

-- Written by Shanthi Venkataraman in New York

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