Joel Greenblatt

Gotham Capital

Last Update: 2013-05-15

Number of Stocks: 822
Number of New Stocks: 187

Total Value: $1,972 Mil
Q/Q Turnover: 29%

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Joel Greenblatt Watch

Joel Greenblatt: Four Things NOT to Do
by Greenbackd - May 10, 2012
Investors struggle to implement the Magic Formula strategy for behavioral reasons. They take a market beating model and proceed to underperform.

Greenblatt found that a compilation of all the “professionally managed” accounts earned 84.1 percent over two years against the [b]S&P 500 (up 62.7 percent)[/b]. A compilation of “self-managed” accounts over the same period showed a cumulative return of 59.4 percent, losing to the market by 20 percent, and to the machines by almost 25 percent. Continue Reading »
Joel Greenblatt on how and why investors struggle to follow the Magic Formula
by Greenbackd - May 09, 2012
Yesterday I looked at James Montier’s 2006 paper The Little Note That Beats The Market and his view that investors would struggle to implement the Magic Formula strategy for behavioral reasons.

The Magic Formula is a logical value strategy, it works in backtest, and, most importantly, it seems to work in practice, as this chart from Formula Investing attests: Continue Reading »
How to beat The Little Book That Beats The Market: An analysis of the Magic Formula
by Greenbackd - May 07, 2012
Since Joel Greenblatt’s introduction of the Magic Formula in the 2006 book “The Little Book That Beats The Market,” researchers have conducted a number of studies on the strategy and found it to be a market beater, both domestically and abroad.

Greenblatt claims returns in the order of 30.8 percent per year against a market average of 12.3 percent, and S&P500 return of 12.4 percent per year: Continue Reading »
SanDisk (SNDK.O) – Uniquely Positioned to Win?
by Kelpie Capital - Apr 15, 2012
This is an entry submitted to Value Idea Contest.

Overview Continue Reading »
Weekly CEO Buys Highlight: WINA, ANGO, FES, LTS, TBOW
by gurufocus - Apr 15, 2012
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

Winmark Corp (WINA): Chairman & CEO, 10% Owner John L Morgan Bought 10,000 Shares Continue Reading »
March Microcap Magic Formula Newsletter Pick: Growing 30% YoY But Trading for Under 10x P/E
by gurufocus - Mar 10, 2012
Joel Greenblatt's magic formula has proven to be one of most popular and successful quantitative screens. By finding stocks with better than average return characteristics selling for below average prices, the screen has proven its ability to outperform the market.

However, the screen has one blind spot — stocks with a market cap under $50 million. Continue Reading »
Greenblatt’s Book Spin-off
by Nicolas73 - Mar 05, 2012
You can be a … spin-off genius

I think Joel Greenblatt is one of the best investors of all times. I'm not alone. Continue Reading »
Joel Greenblatt’s Top Fourth-Quarter Magic Formula Stocks
by Holly LaFon - Feb 28, 2012
Joel Greenblatt is founder of Gotham Capital and the pioneer of Magic Formula investing. He developed the Magic Formula as a numbers-based, unemotional way for individual investors to beat the market over the long term. It is based on the following principles: · Buy a good business cheap like Ben Graham (figure out what it’s worth and pay a lot less).

· Look at free cash flow to the price we’re paying. Continue Reading »
Top 20 New Magic Formula Stocks from Joel Greenblatt
by gurufocus - Feb 16, 2012
Hedge fund manager Joel Greenblatt made his fame by building great track record investing in spin-offs and work outs.

He wrote an excellent called You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits. He then wrote another excellent book called The Little Book That Still Beats the Market (Little Books. Big Profits). This book discusses a ranking method where he ranks the stocks with return on capital, and the earnings yield. His backtest shows that the portfolio based on this ranking system beat the market by wide margins, although it does not do it every year. Continue Reading »
Pain and Patience: Net-Nets, Magic Formulas, and Micro Caps
by Geoff Gannon - Feb 13, 2012
Someone who reads my articles sent me this email:

Hello Geoff, Continue Reading »
Download February Issue of Micro-Cap Magic Formula Newsletter
by gurufocus - Feb 11, 2012
Joel Greenblatt's magic formula has proven to be one of most popular and successful quantitative screens. By finding stocks with better than average return characteristics selling for below average prices, the screen has proven its ability to outperform the market.

However, the screen has one blind spot — stocks with a market cap under $50 million. Continue Reading »
Weekly CEO Buys Highlight: BH, TRCR, SHOR, IEC, UNIS
by GuruFocus - Feb 10, 2012
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

Biglari Holdings (BH): Chairman and CEO, 10% Owner Sardar Biglari, Bought 3,000 Shares Continue Reading »
Hittite Microwave: Debt-free, 74% of Total Assets in Cash and Historical Return of 37x the S&P 500
by Anh Hoang - Jan 18, 2012
As described by Warren Buffett on the performance of the great businesses over time, the return on equity is one of the important figures as well as indicators for great investment opportunities in the long run. On the search for them, I personally thought that if a certain business has a record of increasing their revenues over time, improving profitability over time, including impressive double-digit return on equity, and consistent growing cash positions, it would fit nicely in a basket of long-term investment opportunities.

One of the stocks which meets all these criteria is called Hittite Microwave Corporation (HITT), the company involved in designing and developing high-performance integrated circuits, modules, subsystems and instrumentation for technically demanding radio frequency microwave and millimeter wave application. The business is supported strongly by the global demand for mobile communication services and for real-time access to diverse type of data. The systems could be integral to wireless networks such as cellular telephone, fixed wireless and satellite communication systems, as well as wired networks such as cable TV, broadband access and optical data networks. Continue Reading »
Joel Greenblatt - Adding Your Two Cents May Cost a Lot Over the Long Term
by Holly LaFon - Jan 16, 2012
Managing partner of Gotham Asset Management, professor and author of "The Magic Formula" Joel Greenblatt discusses why people using his Magic Formula underperformed professionally managed systematic accounts in his latest Morningstar article: Continue Reading »
January Issue of Micro-Cap Magic Formula Newsletter Is Ready for Download
by gurufocus - Jan 15, 2012
Joel Greenblatt's magic formula has proven to be one of most popular and successful quantitative screens. By finding stocks with better than average return characteristics selling for below average prices, the screen has proven its ability to outperform the market.

However, the screen has one blind spot — stocks with a market cap under $50 million. Continue Reading »
Medifast – 5-Star Predictability Rating Stock That Can Be Bought Cheaper Than Price Joel Greenblatt Paid
by Anh Hoang - Jan 12, 2012
I’ve was very impressed by one of the Value Strategies on GuruFocus.com, which is Undervalued Predictable Companies. As following the site, it is the most outperforming the S&P compared to other strategies since Inception. Whereas the Buffett-Munger Screener top 25 returned 64.5% since 2009, the Top 25 Undervalued Predictable Companies returned a breathtaking 87.4%.

The way GuruFocus ranked the predictability level based on the consistency of the revenue per share and EBITDA per share over the past 10 years, and on the correlation between stock performance and the predictability of the business. Indeed, as Warren Buffett say, in the short term, we should not care about the movement of the stock price. But over the long run, the stock price does reflect the fundamentals of the business. For stocks receiving a 5-star ranking, the average annualized gain in the period of 1998-2008 was 12.1% and only 3% that were in loss in that 10-year holding period. So I begin to search for 5-star predictability, combined with sustainable earnings and cash flows, trading at reasonable prices that plunged for a year. Continue Reading »
Very Low P/E Stocks Joel Greenblatt selected
by Federico Flom - Dec 22, 2011
Greenblatt is founder and managing partner of Gotham Capital. He has become widely known for the creation of the Magic Formula, by means of which he tries to find cheap and good companies. He looks for value with a catalyst. Greenblatt likes special situations, and thinks that they are simply different places to find cheap stocks.

This Magic Formula embodies the following basic principles: Look for high ROC and high earnings yield; figure out what "normalized earnings" will be 3-4 years into the future; make sure the stock is very cheap based on normalized earnings. He considers that it is worth concentrating in investing in 5 to 8 securities, which can make up 80% of his portfolio. One position could be as high as 30%. Continue Reading »
Kraft Spin-Off Appears Profitable for Shareholders
by Dheeraj Grover - Dec 22, 2011
Back in August 2011 Kraft (KFT) announced its plan to split into two companies — a high-growth global snacks business with estimated revenue of approximately $32 billion and a high-margin North American grocery business with estimated revenue of approximately $16 billion.

The company expects to create these companies through a tax-free spin-off of the North American grocery business to Kraft Foods shareholders. Global snacks will consist of the current Kraft Foods Europe and Developing Markets units as well as the North American snacks and confectionery businesses. The North American grocery business would consist of the current U.S. Beverages, Cheese, Convenient Meals and Grocery segments and the non-snack categories in Canada and Food Service. The spin-off to be completed in 12 months with new companies to be launched before year-end 2012. Continue Reading »
Joel Greenblatt’s New Magic Formula Portfolio Update
by gurufocus - Nov 15, 2011
Joel Greenblatt runs four mutual funds based on the magic formula he invented. Over the past year his US Value 1000 fund and US Value Select Fund outperformed the market. The Select Fund outperformed by more than 6% during the last 12 months.

As of 09/30/2011, Mr. Greenblatt’s firm Gotham Capital owns 588 stocks with a total value of $614 million. These are the details of the buys and sells that have the impact to portfolio of more than .1%. Continue Reading »
CACI International (CACI): Growing Niche Defense Contractor with a Checkered Past
by Ben Strubel - Nov 09, 2011
CACI International is an IT and professional services company primarily serving the U.S. federal government and the Department of Defense. The company was founded in 1962 by two former RAND Corporation employees, Herb Karr and Harry Markowitz (who should be familiar to investors as the father of the efficient market hypothesis). Today the company is headquartered in Annandale, Va. and employs 13,700 people worldwide.

CACI provides enterprise IT and network services; data, information and knowledge management services; business systems solutions; logistics and materials readiness services; C4ISR solutions and services; cyber security; integrated security and intelligence solutions; and program management and system engineering and technical assistance (SETA) services. Continue Reading »