(born December 13, 1957) is an American academic, hedge fund manager, investor, and writer. He is avalue investor, is an alumnus of theWharton School of the University of Pennsylvania, andadjunct professorat the. He runs Gotham Funds with his partner, Robert Goldstein. He is the former chairman of the board ofAlliant Techsystemsand founder of the New York Securities Auction Corporation. He is also a director at Pzena Investment Management, a high-end value firm.
Greenblatt was born to aJewishfamily2inGreat Neck, New York. Greenblatt is a graduate ofThe Wharton Schoolat theUniversity of Pennsylvania, receiving his B.S. in 1979 and M.B.A. in 1980.3At Wharton, his paper How the small investor can beat the market was published inThe Journal of Portfolio Management.4
In 1985, Greenblatt started a hedge fund,Gotham Capital, with $7 million, most of which was provided by junk-bond kingMichael Milken.3Through his firm Gotham Capital, Greenblatt presided over an annualized return of 40% from 1985 to 2006.5
Greenblatt co-founded a website with John Petry called the Value Investors Club,6where investors approved through an application process exchange value and special situation investment ideas. Membership is capped at 250 members and considered highly prestigious.7A 2012 academic study showed that the recommendations of members do in fact appear to generate significant abnormal profits.8The club awards $5000 bimonthly to members who provide the best advice.9
His bookThe Little Book that Beats the Marketintroduced an investment strategy ofmagic formula investing, which is a method for determining which stocks to buy: cheap and good companies with a highearnings yieldand a highreturn on invested capital. His strategy is featured inThe Guru InvestorbyJohn P. Reese.
In October 2009 he launched Formula Investing,10an online money management firm that follows the investment strategy described in his New York Times bestselling bookThe 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. The firm offers its services to individual investors and institutions and to registered investment advisors, who can use Formula Investing as a sub-advisor.
Formula Investing uses a system that determines portfolio selections based on a combination of their relative cheapness and quality, as measured by earnings yield and return on capital. Formula Investing allows money to be managed in a disciplined manner that removes factors, like excess emotion and future projections, that often lead to bad investment results.
Greenblatt is also famous for his contributions to education in New York City. In 2002, he donated $2.5 million to P.S. 65Q, a public elementary school in the borough ofQueens, whose students come largely from the neighborhoods South American and South Asian immigrant communities. This investment, equal to about $1,000 per student per year over five years, helped P.S. 65Q to go from a struggling school to an urban success story almost overnight. He continues to aid the school inOzone Parkcurrently as they have continued to rise. Recently the school and principal Rafael Morales received a progress report score of A, scoring 98 out of a possible 100 points.
In 2006, Greenblatt also helped start theSuccess Academy Charter Schools, then known as the Harlem Success Academy Charter School, an elementary school in the citys historicallyAfrican-American neighborhood.11He is also a board member of the Institute for Student Achievement, a national leader in developing new small high schools and transforming large comprehensive public high schools into small learning communities.12
Greenblatt is a founding Master Player of thePortfolios with Purposevirtual stock trading contest.13
The Big Secret for the Small Investor: A New Route to Long-Term Investment Success
You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits
(in French). Translated by Monet, Roland. Hendaye, France: Valor Editions.ISBN
Grego, Gabriele (December 8, 2014).The Jewish Origins of Value investing.
It also should be pointed out that most value investors, includingBenjamin GrahamSeth KlarmanBruce BerkowitzBruce GreenwaldLawrence Tischand Joel Greenblatt, are Jewish.
Gannon, Geoff.Value Investing Encyclopedia: Joel Greenblatt. December 28, 2005.
Newberg, Bruce L.; Pzena, Richard; Greenblatt, Joel M. (1981-07-31).How the small investor can beat the market.
Exclusive investor club reveals the value of ideas
Do Fund Managers Identify and Share Profitable Ideas?.
Institute for Student Achievement board of directors
Ziegler, Maseena (1 December 2012).When Quitting Is Not An Option – How You Can Find Purpose And Fulfillment Through Your Career.
Magic Formula stock picks scored in real time
American chief executives of financial services companies
Wharton School of the University of Pennsylvania alumni
Wikipedia articles with WorldCat-VIAF identifiers
This page was last edited on 8 November 2019, at 14:49