Gotham Asset Management’s Joel Greenblatt sees better opportunities for value investing on the horizon, based on a recent study by his firm. This according to an article in Institutional Investor. Using data from the past 30 years, Gotham valued all the stocks in the S&P 500 without adjusting for interest rate changes. The analysis showed that the market has been cheaper for investors about 88 percent of the time and, at similar valuation levels, market… Read More
In a recent interview with The Wall Street Journal, Joel Greenblatt—described as “maybe the best-known value investor this side of Warren Buffett,” shared insights on the subject of value investing and the strategy’s near decade-long struggle with underperformance. Here are some highlights: · On his definition of value investing, Greenblatt clarifies, “It does not mean low price-to-book-value, low price-to-sales ratio investing, which is how most people define it.” If you think about stocks as shares of… Read More
During a recent interview at the CFA Society New York, author and legendary investor Joel Greenblatt offered perspective and insights regarding the state of value investing and its future outlook. Here are some highlights: · Greenblatt defines value investing as buying shares of a strong business at a discount. “The whole value versus growth thing is a little bit off,” he said, arguing that low price-book and low price-sales metrics are factors more than indicators of… Read More
In a recent Masters in Business podcast interview with Bloomberg columnist Barry Ritholtz, investor, professor, author and co-chief investment officer of Gotham Asset Management Joel Greenblatt talks about his early days in investing, the concepts behind his books, and his firm’s investing methodology. Here are highlights from the interview: Greenblatt recalled first becoming interested in Benjamin Graham’s strategy as a junior at the Wharton School. At the time, he was being taught the efficient market… Read More
In recent interview with CNBC, author, investor and Columbia University finance professor Joel Greenblatt talked about the challenges faced by value investors. “My students ask the same question,” he said, adding, “I’ve taught at Columbia for 23 years, and I always make a promise to my students on the first day of class—that if they do good valuation work, the market will agree with them. I just never tell them when.” Greenblatt underscored periods of… Read More
In a Bloomberg interview with host Erik Schatzker, Gotham Asset Management co-chief investment officer Joel Greenblatt talked about his value investing approach. Greenblatt explained that his firm doesn’t focus on price-earnings ratio but rather on a company’s cash flow—and that they evaluate all S&P 500 companies “bottoms up” using data going back to 1990. He said, “we can actually contextualize where we stand today, according to how we value companies” (using absolute and relative value… Read More
An article in Barron’s profiles the evolution of the Gotham index Plus fund, which was created by Gotham Asset Management founder Joel Greenblatt in an effort to “marry the steadiness of index investing with the market-beating advantage of active management—which, in this case, means both stock-picking and shorting.” The fund is now three years old, and the article reports it has returned 15.7% annually since its inception, “ahead of the S&P 500’s 13% and 99%… Read More
In a recent episode of WealthTrack, Consuelo Mack interviewed Gotham Asset Management’s Joel Greenblatt, who shared his thoughts on active and passive investing and how he has combined the two in an effort to discourage investors from bailing out of a strategy in tough times. Greenblatt explained that human nature leads investors to pile into well-performing funds and pile out of underperformers—which ends in lost opportunity and dollar losses as well. He discussed the genesis… Read More
In a recent Forbes article, Validea CEO John Reese shared a list of core investing concepts outlined in an essay for the CFA institute by Vanguard founder Jack Bogle, and offered parallels with tenets of market gurus such as Warren Buffett, Peter Lynch, and Joel Greenblatt: Invest you must. Failure to earn an adequate return is riskier than short term market volatility. According to Joel Greenblatt: “The strategy of putting all your eggs in one… Read More
Joel Greenblatt, managing partner of Gotham Asset Management, may have figured out a way to make active strategies appeal to passive investors, according to a recent article in Forbes. The legendary investor and author of The Little Book that Beats the Market (2010) has started a new fund called the Gotham Index Plus Fund that seeks to bend passive an active management strategies by tracking the S&P 500 and using it, the article says, as… Read More