Greenblatt’s Magic Formula-Worthy Picks

Most investors lack patience and don’t understand underperformance, which motivates them to abandon funds when performance dips—precisely the time they shouldn’t, says Joel Greenblatt, co-founder of Gotham Asset Management. In a recent Forbes article, Validea CEO John Reese explains the fundamentals of Greenblatt’s “Magic Formula,” which uses return-on-capital and earnings yield to identify good companies […]

Greenblatt on Gotham’s New Fund

Guru investor Joel Greenblatt—Columbia University professor and co-founder of Gotham Asset Management–has consistently made a strong case for value investing and created a series of hedge funds and mutual funds that would go long cheap stocks and short expensive stocks. However, in a recent interview with Barron’s, Greenblatt explains how underperformance and investor frustration led […]

Greenblatt: Why I Changed Strategies

Why did top strategist Joel Greenblatt change his investment strategy from a highly concentrated one to one that invests in hundreds of stocks? That is one of the many interesting topics Greenblatt covers in a recent interview with WealthTrack.

Good Companies, Cheap Shares: How To Win With The Greenblatt Approach

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged annual returns of 10.7% since its late 2005 inception vs. 5.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock […]

Why Greenblatt Altered His Approach

While he hasn’t changed his general value investing approach, hedge fund guru Joel Greenblatt has changed the way he implements that strategy. The reason? Many investors just can’t handle the ups and downs of a concentrated portfolio.

Greenblatt: Large Caps Looking Better Than Small Caps

Standout hedge fund manager Joel Greenblatt says his “Magic Formula” is finding more value in large-cap stocks than small caps right now. Greenblatt told CNBC that, based on a review of decades of history, he’s finding that large-caps are in the 38th percentile towards expensive right now, meaning they’ve been cheaper than they are now […]