Joel Greenblatt (December 13, 1957) is an American academic, hedge fund manager, investor, and writer. His net worth is estimated to be around $500 million (2015).

 

Greenblatt is the founder of Gotham Capital. He has outperformed his peers in the investment world with his fund returning an impressive annualized return of 40% from 1985 to 2006.

Joel Greenblatt is an adjunct professor at the Columbia University Graduate School of Business and founder of the New York Securities Auction Corporation. He is also a director at Pzena Investment Management, a high-end value firm and former chairman of the board of Alliant Techsystems.

Joel Greenblatt was born in Great Neck, New York and raised in a Jewish family. Greenblatt is a graduate of The Wharton School of the University of Pennsylvania, receiving his B.S. in 1979 and M.B.A. in 1980.

In 1985 Greenblatt started a hedge fund, Gotham Capital, with $7 million. His main backer was junk-bond king Michael Milken.

Greenblatt co-founded a website with John Petry called the Value Investors Club, where selected investors discussed market prices and investment ideas. Membership is capped at 250 members and considered highly prestigious.

In October 2009 Greenblatt launched Formula Investing, an online money management firm that follows the investment strategy described in his New York Times bestselling book, entitled “The Little Book That Beats the Market.”

Formula Investing is a money management firm that uses a proprietary stock-screening system and a disciplined approach to manage portfolios of value stocks.

He has outperformed his peers in the investment world with his fund returning an impressive annualized return of 40% from 1985 to 2006

INVESTMENT STYLE

Joel Greenblatt is a value investor. His “magic investing formula” is based on a fundamental analysis which aims to determine which stock to buy. Greenblatt seeks “cheap and good companies” with a high earnings yield and a high return on invested capital.

Joel Greenblatt manages money in a disciplined manner, through his “magic formula”, thereby he removes factors like excessive emotions and future projections which can often lead to bad investment decisions.

Invest in a strategy and a process that makes sense and stick with it – Joel Greenblatt

LEARNING RESOURCES

Joel Greenblatt co-founded website, the Value Investors Club which is a forum for investors. To date, the club continues to generate abnormal profits and outperform the index.

Greenblatt`s formula Investing also uses a proprietary stock-screening system and a disciplined approach to manage portfolios of value stocks.

Joel Greenblatt introduces his investment strategy of “magic formula investing” in his book entitled, “The Little Book that Beats the Market” (2005), a New York Times best seller and considered by many to be one of the classics of finance literature.

Joel Greenblatt - The Little Book That Beats the Market

There has been a big move to being passive because just buying an index over the last seven or eight years has been a cheap and great way to make money – Joel Greenblatt

CONNECT WITH INVESTOR

Follow this World Top Investor via their various social media channels and read more about their background and current investment interests on their official website:

Joel Greenblatt
www.gothamfunds.com

TRADING SOFTWARE

Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.

Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.

A year later and the activist investor Dan Loeb targets Sony

Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.