Excess Returns A Detailed Look at Joel Greenblatt's Magic Formula Method
Joel Greenblatt produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades .In his 2005 bestseller The Little Book That Beats The Market, Greenblatt laid out a very simple two variable strategy that more than doubled the market return in his testing.
In this episode, we take a deep dive into the magic formula, how it works, and its pros and cons.
We hope you enjoy the discussion.
ABOUT THE PODCAST
Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.
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