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.
He then set up a mutual fund based this method. Since inception in Oct. 2010, the fund gained 8.8%, while the S&P500 gained 7.59%. For 2011, the fund is almost even with the market. As of 12/31/2011, Joel Greenblatt’s firm Gotham Capital owns 644 stocks with a total value of $829 million. The portfolio does have quite high turnovers. The quarter to quarter turnover is 20%.
These are the top 20 new purchases by the magic formula portfolio. These stocks have ranked high with the magic formula Joel Greenblatt invented:
New Purchases: TECD, AZN, VIA, AVY, BGC, BIO, THO, CEO, PLXS, BTM, FL, SCHL, SANM, LPNT, HLF, AEIS, AGCO, BMS, CBOU, HSC.
For the details of Joel Greenblatt's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Joel+Greenblatt
This is the sector weightings of his portfolio:
These are the top 5 holdings of Joel Greenblatt
Astrazeneca Plc (AZN, Financial)
Joel Greenblatt initiated holdings in Astrazeneca Plc. His purchase prices were between $42.53 and $49.89, with an estimated average price of $46.11. The impact to his portfolio due to this purchase was 0.25%. His holdings were 44,699 shares as of 12/31/2011.
Tech Data Corp. (TECD, Financial)
Joel Greenblatt initiated holdings in Tech Data Corp.. His purchase prices were between $41.61 and $51.46, with an estimated average price of $48.38. The impact to his portfolio due to this purchase was 0.25%. His holdings were 41,478 shares as of 12/31/2011.
Viacom Inc. (VIA, Financial)
Joel Greenblatt initiated holdings in Viacom Inc.. His purchase prices were between $45.91 and $54.77, with an estimated average price of $50.97. The impact to his portfolio due to this purchase was 0.24%. His holdings were 43,652 shares as of 12/31/2011.
Avery Dennison Corp. (AVY, Financial)
Joel Greenblatt initiated holdings in Avery Dennison Corp.. His purchase prices were between $23.97 and $28.77, with an estimated average price of $26.65. The impact to his portfolio due to this purchase was 0.18%. His holdings were 51,183 shares as of 12/31/2011.
General Cable Corp. (BGC, Financial)
Joel Greenblatt initiated holdings in General Cable Corp.. His purchase prices were between $21.36 and $30.37, with an estimated average price of $25.97. The impact to his portfolio due to this purchase was 0.17%. His holdings were 57,785 shares as of 12/31/2011.
Thor Industries Inc. (THO, Financial)
Joel Greenblatt initiated holdings in Thor Industries Inc.. His purchase prices were between $21.87 and $28.89, with an estimated average price of $25.4. The impact to his portfolio due to this purchase was 0.16%. His holdings were 49,461 shares as of 12/31/2011.
Biorad Laboratories Inc (BIO, Financial)
Joel Greenblatt initiated holdings in Biorad Laboratories Inc. His purchase prices were between $88.92 and $102.55, with an estimated average price of $95.3. The impact to his portfolio due to this purchase was 0.16%. His holdings were 14,185 shares as of 12/31/2011.
Cnooc Ltd. (CEO, Financial)
Joel Greenblatt initiated holdings in Cnooc Ltd.. His purchase prices were between $150.35 and $201.47, with an estimated average price of $181.86. The impact to his portfolio due to this purchase was 0.14%. His holdings were 6,501 shares as of 12/31/2011.
Foot Locker Inc. (FL, Financial)
Joel Greenblatt initiated holdings in Foot Locker Inc.. His purchase prices were between $19.34 and $25.19, with an estimated average price of $22.51. The impact to his portfolio due to this purchase was 0.13%. His holdings were 43,501 shares as of 12/31/2011.
Plexus Corp. (PLXS, Financial)
Joel Greenblatt initiated holdings in Plexus Corp.. His purchase prices were between $21.39 and $28.84, with an estimated average price of $26.19. The impact to his portfolio due to this purchase was 0.13%. His holdings were 40,655 shares as of 12/31/2011.
Brasil Telecom S.a. (BTM, Financial)
Joel Greenblatt initiated holdings in Brasil Telecom S.a.. His purchase prices were between $16.32 and $21.21, with an estimated average price of $18.41. The impact to his portfolio due to this purchase was 0.13%. His holdings were 60,997 shares as of 12/31/2011.
Agco Corp. (AGCO)
Joel Greenblatt initiated holdings in Agco Corp.. His purchase prices were between $32.39 and $46.82, with an estimated average price of $41.97. The impact to his portfolio due to this purchase was 0.12%. His holdings were 23,160 shares as of 12/31/2011.
Exelis Inc. (XLS)
Joel Greenblatt initiated holdings in Exelis Inc.. His purchase prices were between $8.34 and $11.7, with an estimated average price of $9.91. The impact to his portfolio due to this purchase was 0.12%. His holdings were 110,036 shares as of 12/31/2011.
Advanced Energy Industries Inc. (AEIS)
Joel Greenblatt initiated holdings in Advanced Energy Industries Inc.. His purchase prices were between $8.01 and $11.01, with an estimated average price of $9.48. The impact to his portfolio due to this purchase was 0.12%. His holdings were 91,723 shares as of 12/31/2011.
Sanminasci Corp. (SANM)
Joel Greenblatt initiated holdings in Sanminasci Corp.. His purchase prices were between $6.11 and $9.54, with an estimated average price of $8.37. The impact to his portfolio due to this purchase was 0.12%. His holdings were 105,252 shares as of 12/31/2011.
Herbalife Ltd. (HLF)
Joel Greenblatt initiated holdings in Herbalife Ltd.. His purchase prices were between $50.08 and $62.36, with an estimated average price of $55.21. The impact to his portfolio due to this purchase was 0.12%. His holdings were 19,141 shares as of 12/31/2011.
Bemis Company Inc. (BMS)
Joel Greenblatt initiated holdings in Bemis Company Inc.. His purchase prices were between $27.53 and $31.99, with an estimated average price of $29.29. The impact to his portfolio due to this purchase was 0.12%. His holdings were 34,281 shares as of 12/31/2011.
Scholastic Corp. (SCHL, Financial)
Joel Greenblatt initiated holdings in Scholastic Corp.. His purchase prices were between $24.28 and $30.57, with an estimated average price of $27.45. The impact to his portfolio due to this purchase was 0.12%. His holdings were 34,088 shares as of 12/31/2011.
Lifepoint Hospitals Inc. (LPNT)
Joel Greenblatt initiated holdings in Lifepoint Hospitals Inc.. His purchase prices were between $33.44 and $40.34, with an estimated average price of $37.47. The impact to his portfolio due to this purchase was 0.12%. His holdings were 27,684 shares as of 12/31/2011.
Here is the complete portfolio of Joel Greenblatt. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Joel Greenblatt.
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.
He then set up a mutual fund based this method. Since inception in Oct. 2010, the fund gained 8.8%, while the S&P500 gained 7.59%. For 2011, the fund is almost even with the market. As of 12/31/2011, Joel Greenblatt’s firm Gotham Capital owns 644 stocks with a total value of $829 million. The portfolio does have quite high turnovers. The quarter to quarter turnover is 20%.
These are the top 20 new purchases by the magic formula portfolio. These stocks have ranked high with the magic formula Joel Greenblatt invented:
New Purchases: TECD, AZN, VIA, AVY, BGC, BIO, THO, CEO, PLXS, BTM, FL, SCHL, SANM, LPNT, HLF, AEIS, AGCO, BMS, CBOU, HSC.
For the details of Joel Greenblatt's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Joel+Greenblatt
This is the sector weightings of his portfolio:
| Consumer Services | 22% |
| Technology | 22% |
| Industrials | 21.1% |
| Health Care | 13.1% |
| Consumer Goods | 8.2% |
| Basic Materials | 3.5% |
| Oil & Gas | 2.1% |
| Financials | 1.6% |
| Telecom | 0.7% |
| Utilities | 0.6% |
These are the top 5 holdings of Joel Greenblatt
- SPDR S&P 500 (SPY) - 334,491 shares, 5.1% of the total portfolio. Shares added by 76.13%
- KLATencor Corp. (KLAC) - 232,412 shares, 1.4% of the total portfolio. Shares added by 9.85%
- Northrop Grumman Corp. (NOC) - 181,477 shares, 1.3% of the total portfolio. Shares added by 22.41%
- Apollo Group Inc. (APOL) - 199,434 shares, 1.3% of the total portfolio. Shares reduced by 1.09%
- GameStop Corp. (GME) - 448,241 shares, 1.3% of the total portfolio. Shares added by 15.22%
Astrazeneca Plc (AZN, Financial)
Joel Greenblatt initiated holdings in Astrazeneca Plc. His purchase prices were between $42.53 and $49.89, with an estimated average price of $46.11. The impact to his portfolio due to this purchase was 0.25%. His holdings were 44,699 shares as of 12/31/2011.
Tech Data Corp. (TECD, Financial)
Joel Greenblatt initiated holdings in Tech Data Corp.. His purchase prices were between $41.61 and $51.46, with an estimated average price of $48.38. The impact to his portfolio due to this purchase was 0.25%. His holdings were 41,478 shares as of 12/31/2011.
Viacom Inc. (VIA, Financial)
Joel Greenblatt initiated holdings in Viacom Inc.. His purchase prices were between $45.91 and $54.77, with an estimated average price of $50.97. The impact to his portfolio due to this purchase was 0.24%. His holdings were 43,652 shares as of 12/31/2011.
Avery Dennison Corp. (AVY, Financial)
Joel Greenblatt initiated holdings in Avery Dennison Corp.. His purchase prices were between $23.97 and $28.77, with an estimated average price of $26.65. The impact to his portfolio due to this purchase was 0.18%. His holdings were 51,183 shares as of 12/31/2011.
General Cable Corp. (BGC, Financial)
Joel Greenblatt initiated holdings in General Cable Corp.. His purchase prices were between $21.36 and $30.37, with an estimated average price of $25.97. The impact to his portfolio due to this purchase was 0.17%. His holdings were 57,785 shares as of 12/31/2011.
Thor Industries Inc. (THO, Financial)
Joel Greenblatt initiated holdings in Thor Industries Inc.. His purchase prices were between $21.87 and $28.89, with an estimated average price of $25.4. The impact to his portfolio due to this purchase was 0.16%. His holdings were 49,461 shares as of 12/31/2011.
Biorad Laboratories Inc (BIO, Financial)
Joel Greenblatt initiated holdings in Biorad Laboratories Inc. His purchase prices were between $88.92 and $102.55, with an estimated average price of $95.3. The impact to his portfolio due to this purchase was 0.16%. His holdings were 14,185 shares as of 12/31/2011.
Cnooc Ltd. (CEO, Financial)
Joel Greenblatt initiated holdings in Cnooc Ltd.. His purchase prices were between $150.35 and $201.47, with an estimated average price of $181.86. The impact to his portfolio due to this purchase was 0.14%. His holdings were 6,501 shares as of 12/31/2011.
Foot Locker Inc. (FL, Financial)
Joel Greenblatt initiated holdings in Foot Locker Inc.. His purchase prices were between $19.34 and $25.19, with an estimated average price of $22.51. The impact to his portfolio due to this purchase was 0.13%. His holdings were 43,501 shares as of 12/31/2011.
Plexus Corp. (PLXS, Financial)
Joel Greenblatt initiated holdings in Plexus Corp.. His purchase prices were between $21.39 and $28.84, with an estimated average price of $26.19. The impact to his portfolio due to this purchase was 0.13%. His holdings were 40,655 shares as of 12/31/2011.
Brasil Telecom S.a. (BTM, Financial)
Joel Greenblatt initiated holdings in Brasil Telecom S.a.. His purchase prices were between $16.32 and $21.21, with an estimated average price of $18.41. The impact to his portfolio due to this purchase was 0.13%. His holdings were 60,997 shares as of 12/31/2011.
Agco Corp. (AGCO)
Joel Greenblatt initiated holdings in Agco Corp.. His purchase prices were between $32.39 and $46.82, with an estimated average price of $41.97. The impact to his portfolio due to this purchase was 0.12%. His holdings were 23,160 shares as of 12/31/2011.
Exelis Inc. (XLS)
Joel Greenblatt initiated holdings in Exelis Inc.. His purchase prices were between $8.34 and $11.7, with an estimated average price of $9.91. The impact to his portfolio due to this purchase was 0.12%. His holdings were 110,036 shares as of 12/31/2011.
Advanced Energy Industries Inc. (AEIS)
Joel Greenblatt initiated holdings in Advanced Energy Industries Inc.. His purchase prices were between $8.01 and $11.01, with an estimated average price of $9.48. The impact to his portfolio due to this purchase was 0.12%. His holdings were 91,723 shares as of 12/31/2011.
Sanminasci Corp. (SANM)
Joel Greenblatt initiated holdings in Sanminasci Corp.. His purchase prices were between $6.11 and $9.54, with an estimated average price of $8.37. The impact to his portfolio due to this purchase was 0.12%. His holdings were 105,252 shares as of 12/31/2011.
Herbalife Ltd. (HLF)
Joel Greenblatt initiated holdings in Herbalife Ltd.. His purchase prices were between $50.08 and $62.36, with an estimated average price of $55.21. The impact to his portfolio due to this purchase was 0.12%. His holdings were 19,141 shares as of 12/31/2011.
Bemis Company Inc. (BMS)
Joel Greenblatt initiated holdings in Bemis Company Inc.. His purchase prices were between $27.53 and $31.99, with an estimated average price of $29.29. The impact to his portfolio due to this purchase was 0.12%. His holdings were 34,281 shares as of 12/31/2011.
Scholastic Corp. (SCHL, Financial)
Joel Greenblatt initiated holdings in Scholastic Corp.. His purchase prices were between $24.28 and $30.57, with an estimated average price of $27.45. The impact to his portfolio due to this purchase was 0.12%. His holdings were 34,088 shares as of 12/31/2011.
Lifepoint Hospitals Inc. (LPNT)
Joel Greenblatt initiated holdings in Lifepoint Hospitals Inc.. His purchase prices were between $33.44 and $40.34, with an estimated average price of $37.47. The impact to his portfolio due to this purchase was 0.12%. His holdings were 27,684 shares as of 12/31/2011.
Here is the complete portfolio of Joel Greenblatt. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Joel Greenblatt.
