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Joel Greenblatt

Joel Greenblatt is the managing principal and co-chief investment officer (CIO) of Gotham Asset Management, an investment firm he founded in 1985.

He is also a director of Pzena Investment Management, a global investment management firm.

He went to the Wharton Business School at the University of Pennsylvania and graduated in the year 1979, receiving his Bachelor of Science degree and his Masters of Business Administration degree in 1980.

Joel Greenblatt has also written a couple of books over how to put a strategy in place to buy undervalued stocks with higher yields. His writings touch base on formula type investing.

In fact, the fund manager is regarded as the creator of the famous 'Magic Formula'. It involves buying undervalued stocks based on two parameters - high earnings yield and return on capital (RoC).

Greenblatt is hugely influenced by what he calls the Grahamian 'know nothing' investing. He recognised early that Graham's techniques needed tenacity and discipline more than anything else.

Inspired by Graham and his study, Greenblatt founded hedge fund Gotham Capital. The fund's stellar performance is a result of value investing and maintaining an extremely concentrated portfolio.

It's been decades since Greenblatt back tested and successfully implemented Benjamin Graham's 'know nothing' technique. With the help of this formula, several fund management companies have generated significant return.

Interested in knowing Greenblatt's magic formula? Check out Equitymaster's Indian stock screener.

We have specially designed a screener on Joel Greenblatt's magic formula which lists Indian stocks that rank well on the magic formula's parameters.


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Replicating the success story of Joel Greenblatt in buying Indian microcap stocks today.