Formula Investing Announces the Launch of New International and Global Strategies

Tools

Unique, Proprietary Database Employed to Support Joel Greenblatt’s Value Strategy in Global Markets

NEW YORK--(BUSINESS WIRE)-- Formula Investing announced today the launch of four new separately managed account strategies, consisting of international companies for both individual and institutional investors, based on Joel Greenblatt’s fundamentally-based quantitative value methodology of selecting stocks. These approaches supplement Formula Investing’s existing retail and institutional domestic value strategies, which have already amassed over $100 million since the firm’s launch in 2009.

The four new strategies consist of two international approaches and two global approaches for individual investors and institutions. All the strategies use a newly created proprietary database of company financial data that is used to rank and select stocks from 26 countries. Each of the four strategies includes stocks from countries within Asia, Europe and the Americas, while the two global strategies also include stocks from the United States.

“Ever since we started Formula Investing last year, our clients have asked us when we would take our domestic equity strategy and apply the same disciplined, quantitative approach to international stocks,” said K. Blake Darcy, CEO, Formula Investing. “As a result of the painstaking creation of an international database of company financial information, we were finally able to apply our fundamentally-based quantitative methods to these four new strategies.”

Formula Investing will typically purchase stocks for its client portfolios directly in a stock’s originating country. This investment process enables the portfolios to hold more than just ADRs, thereby increasing the range of stocks purchased beyond many traditional international and global strategies. Individual clients can invest in the international or global strategies starting at $250,000, while the institutional offering starts at $5 million.

These new approaches represent the next evolution of Formula Investing and demonstrate a commitment to providing a suite of investing styles that help individuals and institutions invest in a known value strategy. The money management firm employs strategies developed by its co-founder, Joel Greenblatt, whom many consider to be one of the industry’s most respected money managers.

The proprietary quant strategy Formula Investing uses constructs client portfolios of value stocks with the objective of outperforming broad market indices over the long term. Stocks are chosen based on a combination of what Formula Investing believes is their relative cheapness and quality, as measured by earnings yield and return on capital.

About Formula Investing

Formula Investing is a money management firm that uses a unique, proprietary stock-screening system and a disciplined approach to manage portfolios of value stocks. The firm offers its services to individual investors, registered investment advisors and institutions. The system Formula Investing uses determines portfolio selections though a simple, logical and proprietary quantitative model that chooses stocks based on two key measures—earnings yield and return on capital. Formula Investing was co-founded by Joel Greenblatt, and its portfolio managers follow the strategy outlined in his New York Times bestselling book The Little Book That Beats the Market.