Joel Greenblatt, the founder of Gotham Asset Management, is best known for his “Magic Formula” approach to value investing and his focus on systematic, disciplined strategies. Yet Gotham’s current portfolio reveals something notable: a heavy tilt toward broad-based ETFs. This suggests a balance between Greenblatt’s quantitative methods and a recognition that sometimes, the best way to compound wealth is through diversified market exposure.
Rather than relying solely on single-stock bets, Gotham leans on products like the SPDR S&P 500 ETF Trust and its own Gotham Enhanced 500 ETF. These positions reflect a belief that efficient exposure to the S&P 500, combined with the firm’s proprietary enhancements, can deliver strong returns without the same degree of stock-specific risk. It’s a pragmatic choice that matches Gotham’s long history of blending quantitative precision with scalable strategies.
At the same time, Gotham continues to hold significant positions in individual names like NVIDIA and Apple, aligning with long-term structural growth trends in technology. This dual approach, anchoring with ETFs while selectively leaning into tech innovators, reflects Greenblatt’s ability to adapt, combining timeless investing principles with today’s market realities.
1. SPDR S&P 500 ETF Trust (SPY) 21.76% of portfolio
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The SPDR S&P 500 ETF Trust is Gotham’s largest single holding, accounting for nearly 22% of the portfolio. With more than 4.3 million shares held, Gotham boosted its position by 32% last quarter. The move underscores the firm’s conviction that broad market exposure remains one of the most efficient ways to compound wealth over time, especially given the S&P 500’s blend of mega-cap tech, financials, healthcare, and industrials.
For Greenblatt, SPY serves as both a portfolio anchor and a reflection of discipline. By maintaining such a large position in the ETF, Gotham ensures it participates in overall market upside without having to predict short-term sector rotations. It’s a simple but effective way to balance concentrated bets with steady exposure to the U.S. economy’s biggest and most resilient companies.
2. Gotham Enhanced 500 ETF (GSPY) 4.35% of portfolio
The Gotham Enhanced 500 ETF represents about 4.4% of the firm’s portfolio, with nearly 15.9 million shares. As a proprietary product, GSPY embodies Greenblatt’s investing philosophy, it tracks the S&P 500 but overlays Gotham’s rules-based system to tilt weightings toward value opportunities. This creates a balance between passive exposure and active enhancement.
By committing significant capital to GSPY, Gotham demonstrates faith in its own process. The ETF allows investors (and the firm itself) to capture market-level returns with an added layer of alpha potential. For Greenblatt, it’s also a way to put his formula into practice at scale, showing how disciplined rules can drive consistent long-term outperformance.
3. NVIDIA (NVDA) 2.90% of portfolio
NVIDIA is Gotham’s largest individual stock position, worth about $359 million and representing 2.9% of the portfolio. The firm increased its stake by 6.6% last quarter, adding more than 140,000 shares. With its leadership in AI, GPUs, and data center chips, NVIDIA remains at the heart of the digital transformation that is reshaping everything from cloud infrastructure to autonomous vehicles.
For Gotham, NVIDIA is one of the few exceptions to its ETF-heavy approach, a single stock whose fundamentals justify concentrated exposure. Greenblatt’s rules favor companies with strong earnings power and high returns on capital, and NVIDIA fits squarely into that framework. It’s a recognition that while diversification is important, sometimes a standout growth engine deserves direct ownership.
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4. Apple (AAPL) 1.48% of portfolio
Apple makes up 1.5% of Gotham’s portfolio, with about 890,000 shares. The firm added more than 95,000 shares last quarter, increasing its stake by 12%. Apple’s recurring revenue streams from services, its dominant hardware ecosystem, and a fortress-like balance sheet make it a favorite among value-oriented managers who still want exposure to tech’s most reliable compounders.
Greenblatt’s inclusion of Apple fits his focus on durable businesses with strong cash generation. Even as Gotham emphasizes ETFs, Apple’s consistent capital returns, through dividends and buybacks, make it an ideal stock for long-term compounding. It bridges the gap between growth and value, reinforcing Gotham’s blended strategy.
5. iShares Core S&P 500 (IVV) 1.37% of portfolio
Rounding out Gotham’s top ETF positions, the iShares Core S&P 500 ETF accounts for 1.4% of the portfolio. While small compared to SPY and GSPY, this holding reflects Gotham’s preference for redundancy in terms of broad-based exposure. Even a modest allocation to IVV ensures another layer of liquidity and diversification.
For Gotham, IVV plays a supporting role, less about making a bold bet and more about reinforcing a theme. The firm’s heavy use of S&P 500 ETFs reflects a belief that long-term wealth is often built by owning the market itself. By combining passive ETFs with selective active bets, Gotham seeks the best of both worlds: steady compounding and opportunistic alpha.
Anchored in the Index, Selective in Stocks
Joel Greenblatt’s Gotham Asset Management portfolio stands out for its ETF concentration, reflecting a pragmatic embrace of broad market exposure. At the same time, the inclusion of NVIDIA and Apple shows the firm’s willingness to go beyond passive exposure when a company’s fundamentals align with Greenblatt’s rules-based philosophy. By combining ETFs with selective stock picks, Gotham blends discipline with flexibility, a strategy designed to deliver long-term compounding while avoiding unnecessary risks.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
