Gotham’s Greenblatt Believes in Relative Value

(Bloomberg Opinion) — Why has value underperformed growth for so long in the stock market? Joel Greenblatt of Gotham Asset Management LLC, who is this week’s guest on Masters in Business, explains why traditional measures of value such as price-to-book value, price-to-earnings and debt-to-equity ratios are failing to identify companies with strong potential future cash flows and good growth prospects. He recommends investors instead look to “relative value” as a way to identify companies that have better prospects than suggested by traditional value metrics. 


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Greenblatt has shared this idea in his books, most notably “You Can Be A Stock Market Genius.” His mutual fund — Gotham Enhanced S&P 500 Index Fund — uses the relative value approach. It has a 4-star ranking from Morningstar and has outperformed 90% of its peers since inception. Greenblatt has been an adjunct professor at Columbia Business School since 1996, where he

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Forest Green chairman Dale Vince believes B teams in EFL is a ‘hideous’ idea

A proposal for Premier League clubs to play B teams in the English Football League is a “hideous” idea, according to one chairman.

Manchester City chief executive Ferran Soriano said football in the top flight was not a sustainable business even before the coronavirus crisis and suggested the introduction of second-string sides would rectify that.

However, Dale Vince, chairman at Sky Bet League Two Forest Green, believes the idea would destroy over a century of heritage and a better solution to the unsustainability argument would be for the Premier League to filter down more cash.

Manchester City chief executive Ferran Soriano suggested B teams could play in the EFL (Martin Rickett/PA)

“I think it is a hideous idea. It might be great for some clubs in the Premier League but it is not great for the EFL,” he told the PA news agency.

“We don’t just want to become

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