Joel Greenblatt is a man of many talents. He is currently an academic, serving as an adjunct professor at the Columbia University Graduate School of Business. He is also a writer, investor and successful hedge fund manager of Gotham Asset Management LCC. Joel Greenblatt is widely regarded as being a value investor.

The $8.92 billion fund generated a 3.02% gain for investors in the first quarter. Greenblatt focuses mostly on services and technology stocks, with healthcare and consumer goods to follow. According to TipRanks, Greenblatt is ranked #59 out of 213 hedge funds. Let’s take a closer look at Greenblatt’s Q1 activity in Apple Inc. (NASDAQ:AAPL) and Gilead Sciences, Inc. (NASDAQ:GILD)

Apple Inc.

In the first quarter, the hedge fund manager saw opportunity in Apple, though many others have sold their stake in the tech giant. The firm has increased its holdings in Apple by a massive 56.32% in the first quarter, now owning 725,489 shares worth $79.07 million. This is in major contradiction to the views of several other investment firms on this company. So far this year, Apple has been struggling to keep up with its former growth levels due to the maturation of the iPhone, demand concerns, and macroeconomic challenges. Other criticisms include a lack of base level models and price points availability.

Despite Greenblatt’s optimism, hedge funds have decreased their holdings by 49.2 million shares in the first quarter, according to TipRanks.

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Gilead Sciences, Inc.

Another key adjustment to Gotham’s holdings was a 10.68% increase in pharma giant Gilead. The fund now owns 967,642 shares of the company valued at $88.89 million. Gilead posted disappointing first quarter results marked by lower than expected revenues and earnings. Specifically, the company reported a 15% decrease in Harvoni sales due to discounts and rebates for patients enrolled in government healthcare programs. Throughout the first quarter, the stock fell over 9%. In line with the company strategy, Gotham notched up its holdings in this undervalued company. There are currently fears that growth at Gilead has stalled, but the company still has ample resources and opportunities for growth.

According to TipRanks, hedge funds have decreased their holdings by an average of 208,800 shares in the first quarter. 

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