He puts greater weight on shares of consumer services, retail and semiconductor companies. His picks include Gamestop, American Eagle , Best Buy , Microsoft, Wells Fargo and Hewlett-Packard.
What they have in common is "each one of those companies is hated brutally by most people."
Take HP , whose board replaced CEO Leo Apotheker with former eBay CEO Meg Whitman last week.
"We know the story" with HP, Greenblatt said. "Then again, it earns close to $5 and is trading a little over four times earnings. You pays your money and you takes your chances."
Greenblatt acknowledged his formula isn't perfect. "I'm not projecting the future," he said. "All I know how to do is figure out what [a stock is] worth and pay a lot less. It doesn’t always work."
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Disclosure information was not available for Joel Greenblatt or his company.