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 ideas from the Greenblatt-based investment strategy. Taken from the September 12, 2014 issue of The Validea Hot List
Hedge fund guru Joel Greenblatt says he’s seeing a wide disparity in the way the current market values large stocks and small stocks.
While people often use the words simple and easy to describe the same thing, there’s a big difference — a difference Validea CEO John Reese says has big implications in investing.
Hedge fund guru Joel Greenblatt is known for the “Magic Formula” approach that he laid out in his Little Book That Beats The Market. But more than two decades before that, Greenblatt detailed another strategy that may have even more magic in it, according to ValueWalk.
In his latest column for Forbes.com, Validea CEO John Reese invokes mutual fund legend Peter Lynch in discussing the importance of staying disciplined when the market gets rough.