By Sean Goldsmith in the S&A Digest:

The legendary Marty Whitman and his Third Avenue Funds released their second-quarter letter to investors recently. The value guru is getting way long Hong Kong real estate. As of April 30, 39% of the Third Avenue Value Fund is in common stocks of Hong Kong-based companies.

The two biggest positions, at 12.5% of the total portfolio each, are Cheung Kong - the holding company of Chinese billionaire Li Ka-shing - and Henderson Land Development. Both companies trade at huge discounts to net asset value and have over 40% insider ownership.

While Whitman is loading up on Hong Kong, he's bearish on the U.S. He eliminated his common-stock positions in St. Joe, Suncor, MGIC, and Radian.

You can read the full Third Avenue letter here.

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