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%

Countries:

Details: Top Buys | Top Sales | Top Holdings Embed:

Bookmark

Add to Personalized Guru List

Email Alerts

RSS Update

Joel Greenblatt Watch

What Is in the GuruFocus Premium Membership?
by gurufocus - Jun 27, 2011
Over the years since we started in 2004, we have created many screens for our users to locate the best value investing ideas. With this article we would like to summarize these ideas.

We have added three monthly newsletters to the GuruFocus Premium Membership over the past three years. The newsletters are: Continue Reading »
Joel Greenblatt Article: Anyone—Even The Little Guy—Can Beat the Market
by joel greenblatt - Jun 14, 2011
From Registered Rep:

As most financial advisors know, the secret to successful investing is relatively simple: Figure out the value of something and then — pay a lot less. Unfortunately, as it turns out, it's really hard to figure out the value of a business. And finding good fund managers that can do the job for you — that can be just as difficult. There are several inherent reasons why this is so. Mutual fund managers have to do the things that private investors, such as me, can afford to do. We can own just a few stocks — say as few as 10 to 25 of our favorites — and we can choose stocks that are too small for big funds to buy and for Wall Street firms to follow. Also funds often get too big and charge too much to beat the market. Complicating things further, retail investors — even their financial advisors — are unwilling to hold a good manager when his style is, well, out of style. Of course, a big impediment to beating the market that all managers must overcome is fees. Most actively managed mutual funds charge fees and expenses based on the size of the fund, usually 1 percent to 2 percent of the total assets under management. This means that the more assets a fund has, the more money the management company makes. As you might suspect, this incentive to gather more assets isn't necessarily good for investors. Continue Reading »
How “Magic” is the Magic Formula?
by Wesley Gray - Jun 11, 2011
The underlying concept of the magic formula is a genius marketing platform, but it is unclear how “magic” the formula actually is–examine ‘cheapness,’ examine ‘quality,’ combine the analysis and buy the best value (get the most bang for your buck). The magic formula identifies quality via EBIT / (NPPE +net working capital) and cheapness via EBIT / TEV. These two measures are certainly not ‘bad’; however, they are also not necessarily optimal.

We are always exploring alternatives to the magic formula found in the academic literature. In fact, we highlighted the ‘academic version’ of the magic formula in the following post: Continue Reading »
Options as a Tool for the Value Investor: An Elementary Perspective (Part 1)
by Humberto Fosado - Jun 10, 2011
Derivatives have been called “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal” (Buffett).

Option trading is no exception. The buyer of an option could find his investment rendered worthless in a relatively short time. By the same token, an option writer (if uncovered) finds herself in an extremely risky position and might incur very large loses, many times the premium received for shorting the underlying interest. Continue Reading »
Joel Greenblatt on Value Weighted Indexing at Ira Sohn Conference Today
by Jacob Wolinsky - May 25, 2011
Joel Greenblatt is a managing principal and co-chief investment officer of Gotham Asset Management, LLC and the managing partner of Gotham Capital, which he founded in April 1985. Since 1996, he has been a professor on the adjunct faculty of Columbia Business School. Mr. Greenblatt serves on the Investment Boards for the University of Pennsylvania and UJA Federation, and is a director of Pzena Investment Management Inc. He is the former chairman of the board of Alliant Techsystems. Mr. Greenblatt is the author of "You Can Be a Stock Market Genius," "The Little Book That Still Beats the Market" and "The Big Secret for the Small Investor." He holds a BS and MBA from the Wharton School of the University of Pennsylvania.

From his talk: Continue Reading »
Special – May Microcap “Magic Formula” Newsletter
by - May 20, 2011
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 »
New Magic Formula Stocks from Joel Greenblatt: DLB, LLTC, LEA, XLNX, ASNA
by - May 17, 2011
Renowned value investor Joel Greenblatt reported his portfolio as of the first quarter. He now runs three magic formula mutual funds, and these are the picks based on his magic formula. As of 03/31/2011, Joe Greenblatt’s firm Gotham Capital owns 507 stocks with a total value of $333 million. These are the details of the buys and sells that have the impact to portfolio of more than 0.2%.

This is the portfolio chart of Joel Greenblatt. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position. Continue Reading »
Not Forgetting to Yield: CSCO , TGT , WMT , INTC
by David Chulak - May 17, 2011
Investors sometimes become too mechanical in their selection of stocks and do not really consider what they are actually looking at. We attempt to mechanize our process and may decide, as an example, that we want to screen our stocks to omit those with a return on equity of less than 15. While that is a great number, it also excludes stocks that have ROE’s of 14 that may actually be a better selection.

Benjamin Graham advocated finding stocks that have an earnings yield that are at least twice the AAA bond rate. The earnings yield is an easy find and all investors should look at it; however, they should also realize exactly what they are looking at. If stock ABC has earnings for the last 12 months of .75 and is currently selling for $10.00, the earnings yield would be 7.5%. (0.75/10.00). This number is then measured against the current AAA bond rate (say 5%) to determine whether the extra 2 ½% return compensates the investor for the risk taken. In this example, we can see that the earnings yield is not twice the bond rate; therefore, we may choose to exclude it for now. Continue Reading »
The Big Secret for the Small Investor by Joel Greenblatt
by Jacob Wolinsky - May 09, 2011
Joel Greenblatt is, without a doubt, one of the best investors of our time. Greenblatt produced annual returns of 40% for 20 years at Gotham Capital. Additionally, Greenblatt is famous for the invention of the Magic Formula Investing. Greenblatt has released a total of three books which include "You Can Be a Stock Market Genius" — which has been recommended by Seth Klarman (here), Dan Loeb (here), and David Einhorn (here) — "The Little Book That Still Beats the Market," and his latest book, "The Big Secret for the Small Investor." Proved by the fanatical popularity of the first two books, Joel Greenblatt can undeniably deliver when it comes to talking about investment.

The investing philosophy of Greenblatt, which is encapsulated by the Magical Formula, is highlighted in "The Little Book That Still Beats the Market." The basic principle of the Magical Formula is to concentrate on stocks with high returns on capital and a high earnings yield. Continue Reading »
AVX Corporation Reports Earnings Increase of 71%
by ABN - Apr 29, 2011
AVX Corporation, the South Carolina-based electronic components manufacturer, reported preliminary full year results to March 31 with a 71% increase in net income to $244.0 million and 82.5% increase in diluted EPS to $1.46.

Chief Executive Officer and President John Gilbertson said, “We are encouraged by the overall outlook for the electronic component industry as end user demand for electronic products continued to increase as evidenced by the strong bookings we received throughout the fiscal year. Continue Reading »
How does Magic Formula Investing Work?
by Stockopedia - Apr 21, 2011

In Brief
Magic Formula Investing is a value investing strategy based on buying 20-30 "good, cheap companies" defined as having the best available combined ranking in terms of earnings yield and a return on capital.

Background
A widely respected hedge-fund manager, Joel Greenblatt, started as a value purist but was influenced by Warren Buffett's view about growth being part of the value equation. He founded Gotham Capital, a fund which apparently returned over 40% annualized from 1985 to 2005. By 1995, it had returned all money to its outside investors. He has authored two books, "You Can Be a Stock Market Genius" and New York Times bestsellier, “The Little Book That Beats the Market,” and is also adjunct professor at Columbia University Business School. Greenblatt espouses MFI as a do-it-yourself version of the approach he has used while amassing his investment track record. With the “Little Book,” Greenblatt wanted to write a book his children could read and learn from. The main point Greenblatt makes is that investors should buy good companies at bargain prices. Continue Reading »
Special - Microcap “Magic Formula” Newsletter
by - Apr 20, 2011
Joel Greenblatt’s “Magic Formula” has proven to be one of the most popular (and successful) mechanical value investment screens. By finding stocks with above average earnings yields and returns on invested capital, the magic formula consistently outperforms the market. However, the magic formula has one blind spot: “micro-cap” stocks, specifically those under $50 million in market cap. The Micro-Cap Magic Formula Newsletter will capitalize on that blind spot by digging through stocks too small to make the official magic formula screen.

This is the link to download the special report: Continue Reading »
Book Review: The Big Secret for the Small Investor
by Geoff Gannon - Apr 15, 2011
Joel Greenblatt is out with a new book: "The Big Secret for the Small Investor."

I downloaded it onto my Kindle the second it became available – because Joel Greenblatt is our modern day Ben Graham. Continue Reading »
GuruFocus Interview with Renowned Investor Joel Greenblatt
by gurufocus - Apr 14, 2011
Joel Greenblatt is a renowned investor who invented Magic Formula Investing and founded the New York Securities Auction Corporation (NYSAC). He is the founder and Co-CIO of Gotham Capital, an investment partnership that achieved 40 percent annualized returns for the 20 years after its founding in 1985, and adjunct professor at Columbia Business School. Mr. Greenblatt has written three books on investing, including his most recent, "The Big Secret for the Small Investor."

His investment philosophy is to find cheap and good companies, usually those in special situations. In his own hedge fund, he employs the principals of the Magic Formula: Look for high ROC and earnings yield, try to figure out what "normalized earnings" will be 3-4 years into the future, and choose only stock that is very cheap based on normalized earnings. He typically has a concentrated portfolio of only 5-8 securities at a time. Continue Reading »
Joel Greenblatt Has a Big Secret for You
by Magic Diligence - Apr 13, 2011
The past few weeks have seen Joel Greenblatt, the father of Magic Formula Investing (MFI), out promoting his new book released Tuesday, titled The Big Secret for the Small Investor. MagicDiligence is in the process of reading the book, and a full review should be up as early as next week. From Greenblatt's interview with Morningstar, we already have a pretty good idea of what the book is about and the motivation behind it. The "big secret" is value weighted indexing. Most indexes, like the S&P 500 or Russell 3000, are weighted by market cap. That means that for every dollar you invest in them, the largest cap stocks get more pennies then the smaller cap stocks. For example, if you invest $100 in a S&P 500 index fund (SPY is a popular one), about $3.48 is invested in ExxonMobil (XOM), the largest-cap stock in the index, while about $2.52 is invested in Apple (AAPL), the second largest, and so on.

Greenblatt believes weighing the indexes by value parameters, such as the operating earnings yield and return on tangible capital used by MFI, produces better results. In the Morningstar interview, he says that market cap weighting removes about 2% of annual returns as opposed to equal weighting (where money is spread evenly among all stocks in an index). A quick Google search will net you dozens of studies corroborating that fact, and it makes intuitive sense as well -— very large cap stocks have more limited growth avenues and are more appropriately priced, in general. Continue Reading »
Guru Stocks Raising Dividends: SKT, PNC, RELL, TJX, GOV
by jameskuang - Apr 10, 2011
This is the group of companies who raised their dividend during the week: Tanger Factory Outlet Centers (SKT), Pnc Financial Services Group (PNC), Richardson Electronics Ltd. (RELL), Tjx Companies Inc. (TJX), and Government Properties Income Trust (GOV).

Tanger Factory Outlet Centers (SKT)
Tanger Factory Outlet Centers Inc. is a fully-integrated, self-administered and self-managed real estate investment trust which focuses exclusively on developing, acquiring, owning and operating factory outlet centers. Tanger Factory Outlet Centers has a market cap of $2.06 billion; its shares were traded at around $25.28 with a P/E ratio of 20.4 and P/S ratio of 7.4. On April 7th the company increased its quarterly dividend 3.2% to $0.20/share. The dividend is payable on May 13, 2011 to shareholders of record on April 29, 2011. The yield based on the new payout is 3.2%. Continue Reading »
Plan not to Panic
by DaveinHackensack - Apr 08, 2011
“Plan not to panic” next time your stock portfolio drops 40%. That was billionaire hedge fund manager Joel Greenblatt’s advice for the little people in a column on his Magic Formula investing site last year (by the way, Virginia, there are no magic formulas). So what did Greenblatt do when Mike Burry, a hedge fund manager Greenblatt’s Gotham Capital invested with, was down 18% in 2006 (after several years of spectacular returns), due to early, illiquid bets against subprime mortgages — bets that Burry wanted to hold to fruition? From p.190 of Michael Lewis’s book, The Big Short,

[quote]Immediately [...] Gotham Capital threatened to sue him. Continue Reading »
What if Your Investment Strategy Stops Working?
by Tim du Toit - Mar 28, 2011
A while ago I had an interesting discussion with a subscriber.

He asked a question that at first sounded easy, but the more I thought about it, the more I realised it was very difficult to answer. Continue Reading »
Book Review: You Can Be A Stock Market Genius: Chapter 1 - 2
by Barel Karsan - Feb 27, 2011
Value investor Joel Greenblatt takes the reader through a number of categories of investing examples where market inefficiencies exist. This book has numerous case studies, giving the investor a chance to learn and then apply the lessons to current and future market opportunities

Chapter 1. Continue Reading »
New Magic Formula Stocks from Joel Greenblatt: IDCC, SNDK, MHP, OSK, LO, MRX
by gurufocus - Feb 23, 2011
When famed value investor Joel Greenblatt published his little book “The Little Book That Beat The Market”, it was an immediate hit. We started to track the portfolio of Mr. Greenblatt’s hedge fund Gotham Capital. But for the last two years Gotham Capital did not report its portfolio, Magic Formula fans could not track Mr. Greenblatt’s portfolio closely.

To our delight, Mr. Greenblatt started to report his portfolio again. The portfolio consists of 358 stocks with the total value of $306 million on Dec. 31, 2010. As we look into these stocks, we found many of them have the characters of the stocks that would be top ranked in Mr. Greenblatt’s Magic Formula. Continue Reading »