During his recent interview with ETF Think Tank, Joel Greenblatt explained why he’s very excited about the value opportunity right now. Here’s an excerpt from the interview:
Q3 2022 hedge fund letters, conferences and more
Greenblatt: And my answer to those who say you know things don’t look so good right now. The FED is raising rates. We’re about to hit a recession. Of course you’re able to construct a portfolio that’s fairly cheap.
And I would say every time over the last 30 years we’ve been in the 92nd percentile it’s looked at least this bad.
So it always looks bad when you’re able to buy them this cheap, and I’m very excited about the value opportunities, my bottom line.
There’s a huge dichotomy. I’m not saying it’s like you know what happened to us in 98/99. We were losing money, everybody’s making money, and then in 2000 you know it reversed completely.
But I am saying it does rhyme. I’m saying there’s a huge dichotomy between the way we perceive value and what the market is paying for.
You can watch the entire discussion here:
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Article by The Acquirer's Multiple.
