Batman, Robin and Joel Greenblatt II

All superhero movies have a sequel - so why not this post ? Although I am not sure I can go as far as the Batman sequels - they must be at number 5 or 6 by now.

Somebody pointed out on the Yahoo Magic Formula group that the Gotham fund only represents their stock investments and we do not really know about their other investments - which is a good point. But Greenblatt is famous for focusing on 5-8 stocks in the portfolio and I believe the historical returns of his funds are based just on these stocks funds. They had about 6 stocks a year ago -but now it's just those 2. And on top of that -- options - (sorry I just can't get over that)

You must have the following convictions for doing this:
- total faith in the overall market not having an adjustment >> even a 10-15% adjustment could wipe out the total investment - so there must be very little concern about that happening.

- believe in these stocks to really gain fairly quickly >> I guess one could sell the options and buy new ones - but the turnaround cost are pretty high and with this type of volume it can't be that easy to make buy and sell decisions. So no 2-3 year window here ..

- believe the stocks really take off >> again, these are option investments - the volume can be a big problem. A 30% gain may mean very little if you can't sell and turn into a much smaller return. I am not an expert on options - but I see my gains not fully materialize on good days and the volume is soooo low.