Esteemed investor Joel Greenblatt recently submitted his 13F report for the second quarter of 2023, which concluded on June 30, 2023. Greenblatt, renowned for his 'Magic Formula' investing strategy, is a firm believer in the principles of buying good companies at bargain prices. His investment philosophy is rooted in the fundamentals of value investing, focusing on companies with high return on capital and earnings yield.
As of the end of Q2 2023, Greenblatt's portfolio encompassed 1,296 stocks with a total value of $4.60 billion. The portfolio's top holdings were SPY (7.20%), GSPY (5.81%), and AAPL (1.69%).
Top Three Trades of the Quarter
Greenblatt's most significant transactions for the quarter involved S&P 500 ETF TRUST ETF (ARCA:SPY), Gotham Enhanced 500 ETF (ARCA:GSPY), and Apple Inc (NAS:AAPL).
S&P 500 ETF TRUST ETF (ARCA:SPY)
During the quarter, Greenblatt purchased 114,089 shares of ARCA:SPY, bringing his total holding to 746,740 shares. This transaction had a 1.1% impact on the equity portfolio. The stock traded at an average price of $418.22 during the quarter. As of August 14, 2023, SPY's price was $448.11, with a market cap of $421.15 billion. The ETF has returned 6.62% over the past year. GuruFocus gives SPY a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10. The ETF's EV-to-Ebitda ratio stands at 15.14, and its price-sales ratio is 2.64.
Gotham Enhanced 500 ETF (ARCA:GSPY)
Greenblatt reduced his investment in ARCA:GSPY by 1,051,916 shares, impacting the equity portfolio by 0.57%. The stock traded at an average price of $22.98 during the quarter. As of August 14, 2023, GSPY's price was $24.6084, with a market cap of $303.40 million. The stock has returned 8.05% over the past year.
Apple Inc (NAS:AAPL)
Greenblatt bought 94,530 shares of NAS:AAPL during the quarter, bringing his total holding to 400,591 shares. This transaction had a 0.4% impact on the equity portfolio. The stock traded at an average price of $174.1 during the quarter. As of August 14, 2023, AAPL's price was $179.46, with a market cap of $2,805.72 billion. The stock has returned 4.90% over the past year. GuruFocus gives AAPL a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10. AAPL's valuation metrics include a price-earnings ratio of 30.16, a price-book ratio of 46.61, a PEG ratio of 1.73, an EV-to-Ebitda ratio of 22.28, and a price-sales ratio of 7.43.
In conclusion, Greenblatt's Q2 2023 13F filing reveals a strategic balance between ETFs and individual stocks, with a clear focus on value investing principles. His portfolio adjustments reflect his ongoing commitment to investing in high-return, reasonably priced assets.
