Hedge fund guru Joel Greenblatt has produced remarkable returns over the long haul using what he calls his Magic Formula. But in his latest column for Forbes.com, Validea CEO John Reese says there is much more to Greenblatt’s approach than magic. “While the remarkably simple strategy includes just two variables, Greenblatt — much like the […]
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Tag Archives: Joel Greenblatt
Beating The Market With Simplicity — And Discipline
February 1, 2013 
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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 6.6% since its December 2005 inception vs. 2.4% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]
Read moreWithout Discipline, The Numbers Won’t Help You In The Market
December 12, 2012 0 Comments
In a recent column for Canada’s Globe & Mail, Norman Rothery says that using simple numerical stock-picking models can lead to strong returns — but that sticking to those strategies is both critical and very difficult. “A huge pile of research points to an array of simple numerical stock strategies that boosts returns over the […]
Read moreGreenblatt Talks Market Valuation, Value Investing, and Much More
October 12, 2012 0 Comments
In a wide-ranging interview with the Columbia Business School’s Graham & Doddsville newsletter, hedge fund guru Joel Greenblatt says the stock market is in the “87th percentile towards cheap” right now, and discusses a myriad of aspects of his investment approach. Greenblatt says that, using the market-cap-weighted free cash flow yield of the Russell 1000 […]
Read moreGreenblatt Finding Value in Tech, Retail
May 11, 2012 0 Comments
Hedge fund guru Joel Greenblatt is finding value in the technology and retail sectors. Greenblatt tells CNBC that he’s high on tech firms like Apple and Microsoft, and retailers like Best Buy. He says some of the firms are facing headwinds, but that the headwinds are actually good, because they’ve lowered expectations and baked negative […]
Read moreBeating the Market with Simplicity — and Discipline
March 30, 2012 0 Comments
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 6.2% since its December 2005 inception vs. 1.7% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]
Read moreGreenblatt: Less Is More In Portfolio Management
January 31, 2012 0 Comments
The more you try to do with your portfolio, the worse your returns will often be, according to hedge fund guru Joel Greenblatt. In a column for Morningstar.com, Greenblatt explains why investors who tried to implement his “magic formula” investing plan by themselves have fared worse than those who have asked for the plan to […]
Read moreHow Many Stocks Is Enough?
December 30, 2011 1 Comment
How many stocks should an investor own in order to diversify away stock-specific risk? Some interesting data shows that it may be fewer than you think. The data comes from hedge fund guru Joel Greenblatt’s book, You Can Be A Stock Market Genius, and was highlighted by top value investor Whitney Tilson a few years back […]
Read moreGreenblatt Seeing Plenty of Value
October 18, 2011 0 Comments
Hedge fund guru Joel Greenblatt thinks the next year is setting up to be a good one for stocks. “Not only is the market cheap, but the value opportunity is really nice right now,” Greenblatt said at the Value Investing Congress in New York, according to The Wall Street Journal. “Greenblatt … opened the conference […]
Read moreGreenblatt: Stocks Looking Cheap — Very Cheap
September 27, 2011 1 Comment
Hedge fund guru Joel Greenblatt says that, based on trailing free cash flow yields, stocks are trading at levels that put them in about the 95th percentile of cheapness when examining the past 20 years of market history. Greenblatt tells CNBC that if the past is any indication, valuation levels this low could be proceeded […]
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