Joel Greenblatt is an American investor, hedge fund manager, and professor at Columbia Business School. He is best known for his "Magic Formula" investing strategy and for generating extraordinary returns at Gotham Capital.

Gotham Capital

Greenblatt founded Gotham Capital in 1985 and achieved one of the best track records in hedge fund history. From 1985 to 2005, Gotham Capital generated annualized returns of approximately 40%, turning $7 million into $1 billion before returning capital to outside investors.

The Magic Formula

In his book "The Little Book That Beats the Market," Greenblatt introduced the Magic Formula—a simple, systematic approach to finding good companies at bargain prices. The formula ranks stocks based on earnings yield and return on capital.

Teaching

Greenblatt has taught at Columbia Business School for over 20 years, sharing his investment wisdom with the next generation of investors. He is known for making complex concepts accessible and actionable.

Special Situations

Much of Gotham's success came from special situations investing—spinoffs, restructurings, and other corporate events that create mispricings. Greenblatt's book "You Can Be a Stock Market Genius" details these strategies.