“Most people have a tough time sticking with active managers who underperform for a period of time. But of course, if you’re going to beat the market, you have to do something different than the market. And active managers will zig and zag differently,” explains Joel Greenblatt, founder of Gotham Asset Management, in a recent interview with Morningstar. Greenblatt discusses his firm’s disciplined valuation process that uses both absolute and relative value metrics to rank… Read More
Hedge fund manager Joel Greenblatt, author of The Little Book that Beats the Market, uses what he calls a “magic formula” to earn returns that outperform the market. In a recent article for TheStreet.com, John Reese, CEO of Validea, explains Greenblatt’s strategy of focusing on return-on-capital and earnings yield to find “good companies at bargain prices.” But this straightforward, seemingly simple strategy is no magic bullet. It is based on a long-term view (3 to… Read More
“I think the big move now is from active [investing] to passive, and that’s good for most people,” says Joel Greenblatt, Managing Principal of Gotham Asset Management and the guru Validea’s “Earnings Yield Investor” is based on. In a recent interview with CNBC, Greenblatt shared his opinion that “most people shouldn’t be picking individual stocks unless they know how to value businesses. That’s hard work, and a full time job.” When it comes to selecting… Read More
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.
Hedge fund guru Joel Greenblatt says that the large-cap universe is looking a lot more attractive than the small-cap space from a valuation perspective right now.
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.