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Joel Greenblatt founded Gotham Capital in 1985 with $7 million. The hedge fund has impressive returns over the years. Greenblatt is a value investor with a focus on special situations. He also has a quantitative investment strategy, Magic Formula Investing, which is described in one of his books: “The Little Book That Beats the Market.” Greenblatt is not so secretive about his investment style. Besides The Little Book, he has also authored two other books explaining his investment philosophy.

Here are his new top 14 Magic Formula stocks:

Company

Ticker

Value (x1000)

Return Since June

SPDR S & P 500 ETF TRUST

SPY

28797

-10%

SAFEWAY INC

SWY

3263

-20%

BEST BUY COMPANY INC

BBY

2894

-23%

APPLE INC

AAPL

2877

14%

JOY GLOBAL INC

JOYG

2877

-14%

VIACOM Inc. NEW

VIA-B

2837

-12%

HUBBELL INC

HUB-B

2665

-13%

C V S CAREMARK CORP

CVS

2592

-1%

STANLEY BLACK & DECKER

SWK

2543

-20%

INGERSOLL RAND PLC

IR

2411

-27%

MEDTRONIC INC

MDT

2408

-10%

PARKER HANNIFIN CORP

PH

2271

-22%

BROWN FORMAN CORP

BF-B

2178

-7%

TESORO CORP

TSO

2096

6%

SPDR S&P 500 ETF Trust (SPY): Greenblatt holds $29 Million in SPY, which has lost 10% since the end of June. SPY has a market cap of $79.16B and a P/E ratio of 6.70. Ray Dalio had the largest position in SPY at the end of June (check out Dalio’s stock picks).

Safeway Inc. (SWY): Safeway is a food and drug retailer in North America. Greenblatt holds $3.3 Million in SWY, which has lost 20% since the end of June. SWY has a market cap of $6.27B and a P/E ratio of 12.54. Dan Loeb had the largest position in SWY at the end of June, and he increased his position by 97% during the second quarter.

Best Buy Company Inc. (BBY): Best Buy is a multinational retailer of consumer electronics, home office products, entertainment products, appliances and related services. Greenblatt holds $2.9 Million in BBY, which has lost 23% since the end of June. BBY has a market cap of $9.16B and a P/E ratio of 7.90. David Einhorn had the largest position in BBY at the end of June, and he increased his position by 15% during the second quarter (check out Einhom’s stock picks).

Apple Inc. (AAPL): Apple designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related products. Greenblatt holds $2.9 Million in AAPL, which has gained 14% since the end of June. AAPL has a market cap of $349.82B and a P/E ratio of 14.94. Rob Citrone had the largest position in AAPL at the end of June, and he increased his position by 16% during the second quarter.

Joy Global Inc. (JOYG): Joy Global is a manufacturer and servicer of mining equipment for the extraction of coal and other minerals, and ores. Greenblatt holds $2.9 Million in JOYG, which has lost 14% since the end of June. JOYG has a market cap of $8.25B and a P/E ratio of 14.33. Jeffrey Vinik had the largest position in JOYG at the end of June, and he largely increased his position by 1236% during the second quarter (see Jeff Vinik’s stock picks).

Viacom Inc. New (VIA.B): Viacom is an entertainment content company that engages audiences on television, motion picture, Internet and mobile platforms through many brands. Greenblatt holds $2.8 Million in VIA-B, which has lost 12% since the end of June. VIA-B has a market cap of $25.01B and a P/E ratio of 12.75.

Hubbell Inc. (HUB.B): Hubbell is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. Greenblatt holds $2.7 Million in HUB-B, which has lost 13% since the end of June. HUB-B has a market cap of $3.28B and a P/E ratio of 14.13.

CVS Caremark Corp. (CVS): CVS Caremark is a pharmacy healthcare provider in the United States. Greenblatt holds $2.6 Million in CVS, which has lost only 1% vs. -10% for SPY since the end of June. CVS has a market cap of $49.09B and a P/E ratio of 14.79. Jonathon Jacobson had the largest position in CVS at the end of June.

Stanley Black & Decker Inc. (SWK): Stanley Black & Decker is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems and more. Greenblatt holds $2.5 Million in SWK, which has lost 20% since the end of June. SWK has a market cap of $9.24B and a P/E ratio of 15.24. John W. Rogers had the largest position in SWK at the end of June, and he reduced his position by 16% during the second quarter (check out Rogers’ stock picks).

Ingersoll Rand Plc. (IR): Ingersoll Rand provides products, services and solutions to enhance the comfort of air in homes and buildings, transport and protect food and perishables, and secure homes and commercial properties. Greenblatt holds $2.4 Million in IR, which has lost 27% since the end of June. IR has a market cap of $10.68B and a P/E ratio of 12.22. Phill Gross and Robert Atchinson had the largest position in IR at the end of June, and they significantly increased their position by 1525% during the second quarter.

Medtronic Inc. (MDT): Medtronic is a medical technology company. Greenblatt holds $2.4 Million in MDT, which has lost 10% since the end of June. MDT has a market cap of $35.41B and a P/E ratio of 11.64. Ken Fisher had the largest position in MDT at the end of June, and he largely increased his position by 2563% during the second quarter.

Parker Hannifin Corp. (PH): Parker is a full-line diversified manufacturer of motion and control technologies and systems, including fluid power systems, electromechanical controls and related components. Greenblatt holds $2.3 Million in PH, which has lost 22% since the end of June. PH has a market cap of $10.29B and a P/E ratio of 10.45. Ric Dillon had the largest position in PH at the end of June.

Brown Forman Corp. (BF.B): Brown-Forman manufactures, bottles, imports, exports and markets a variety of alcoholic beverage brands. Greenblatt holds $2.2 Million in BF-B, which has lost 7% since the end of June. BF-B has a market cap of $9.77B and a P/E ratio of 17.05.

Tesoro Corp. (TSO): Tesoro is an independent petroleum refiners and marketers in the United States. Greenblatt holds $2.1Million in TSO which has gained 6% since the end of June. TSO has a market cap of $3.37B and a P/E ratio of 8.79. David Dreman had the largest position in TSO at the end of June (check out Dreman’s top stock picks).

Source: Joel Greenblatt's New Magic Formula Stocks