We haven’t covered Joel Greenblatt’s stock picks recently. His flagship fund, Gotham Absolute Return (GARIX), returned 58.6% since its inception in August 2012. This fund is supposed to be 50-60% net long. S&P 500 Index returned 112% during the same period, a fund that’s 50-60% net long the S&P 500 Index would have returned 56-67% during this period. It seems like Greenblatt’s main strategy hasn’t really delivered any alpha after fees and expense.
Below, you can see Consuela Mack’s interview with Joel Greenblatt. Greenblatt talks about his better performing Gotham Index Plus (GINDX) fund. This fund is 190% long and 90% short, so its net exposure is comparable to the S&P 500 Index (though we believe it is riskier than the SPY). This fund returned 46% since its inception 3 years ago. S&P 500 Index returned only 37% during the same period. We should note that Gotham Index Plus’ returns are better than the market but not nearly as good as Insider Monkey’s flagship strategy which returned 81.5% since its inception 4 years ago and outperformed the SPY by 30 percentage points (you can download the latest issue of our quarterly newsletter by creating a free account).