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Look at this quote from the WSJ:

Legendary fund manager Marty Whitman is pinning the blame squarely on an "irrational" stock market meltdown for this year's hefty losses at his Third Avenue Value fund.

"As far as we are concerned," Mr. Whitman declares in his latest shareholder letter to investors, "the fund's poor 2008 performance is attributable to an irrational stock market, not any fundamental deterioration in the businesses in which [Third Avenue Funds] has invested."

I don't really know what to say. There is no deterioration in MBIA's (NYSE:MBI) business? Ambac (ABK)? St. Joe (NYSE:JOE)?

What I don't like about Third Avenue is they never learned their lesson. Never started giving much weight to the possibility of a global depression (which is what is actually happening).

Although it does look like they are finally getting rid of JOE. Evidently, they sold out of Applied Materials (NASDAQ:AMAT) in the 4th quarter. I am short AMAT and JOE. If Third Avenue is not going to defend the price any longer then it is probably safe for me to pile on the shorts.

Disclosure: Short AMAT and JOE

Source: Third Avenue Never Learned Their Lesson