A Stalwart Picker of Value Stocks Joins the Indexing Crowd
- The veteran manager is banking on a hybrid active-passive approach
- This article is part of a series on the future of investing
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Each fall, aspiring value investors flock to Columbia Business School to take hedge fund manager Joel Greenblatt’s class. Recently they’ve arrived with doubts. Someone will say, “Hey, Joel, congrats on a nice 35-year career,” Greenblatt said, “but isn’t the party kind of over for us?”
Bargain-hunting has been a favored strategy for generations of investors. But an eight-year rally in stocks, lagging performance for many value-oriented managers, and a flood of money to passive funds has removed the shine. Even at Columbia — the vaunted MBA program where Benjamin Graham once taught the craft to a young Warren Buffett — students are questioning its premise.