Joel Greenblatt
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Joel Greenblatt is an
associate professor at the Columbia University Graduate School of Business and a
US hedge fund manager. Joel Greenblatt is also known as the inventor of magic formula investing.
He presents this strategy in his book "The Little Book that Beats the Market”.
Greenblatt was born on December 13, 1957 in Great Neck, Long Island (NY) into a Jewish family. In 1985, Greenblatt graduated from the Wharton School of the University of Pennsylvania with an MBA degree. He founded Gotham Capital with a seed capital of $7 million the same year, thanks to the support of Michael Milken.
The success and skill of Greenblatt enabled him to provide his investors with annual returns of up to 50% before taxes or 30% after taxes and fees between 1988 and 1994.
Greenblatt's fund provided Michael Burry with $1 million in 2000 to help him build the Scion Fund. Burry has been entrusted with approximately $100 million by Gotham Capital over the years. The relationship was good until 2006, when disagreements over Burry's bet against the mortgage market caused Greenblatt, along with several other investors, to attempt to withdraw their capital, which Burry prevented. The verdict was in Burry's favor. Greenblatt, however, decided to withdraw his capital from Scion when the housing crisis began, and with it the 2008 financial crisis.
As of 2008, Greenblatt established a new company, Gotham Asset Management LLC. He has launched four funds with this firm by 2010 that have raised more than $360 million. It is due to Greenblatt's fame and prestige that he managed more than $5 billion by the end of 2019.
Aside from running his investment firm, Greenblatt is also a
professor at Columbia University's Graduate School of Business. He has also established an exclusive club, "The Value Investors Club", in which only 250 value investors are permitted to give each other useful advice and share their market assessments.
As well as continuing to run his exclusive club, Joel Greenblatt
remains active in the stock market and teaches at Columbia University. Additionally, he devotes time and resources to
philanthropy, especially in the field of education for marginalized groups such as African Americans and Latinos in New York. There is no doubt that it is necessary not only to know his views on the market, but also to consider the advice that he offers in his many books.
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