Joel Greenblatt know the challenges of running portfolios intended to outperform their benchmarks as well as anyone. When he was running his concentrated, special situations portfolio at Gotham Capital, he compounded at 50% per year (before fees) for a decade. Despite large drawdowns and high volatility, his investors were understandably unhappy when he returned their capital.
Greenblatt is now co-chief investment officer and portfolio manager at Gotham Asset Management LLC. He has also been an adjunct professor at Columbia Business School since 1996, where he teaches classes on value and special situation investing. He is the author several books, most recently “The Big Secret for the Small Investor.”
His current mutual fund, Gotham Index Plus (GINDX), now three years old, was ranked the top performing fund in its category (large cap mixed) versus its 1200 peers. (Its flat YTD). It is designed as a long/short hedge fund substitute with a fee structure of a flat 1 percent.
Next week, we chat with Patty McCord, the chief talent officer at Netflix for 14 years, and author of the new book, Powerful: Building a Culture of Freedom and Responsibility.