No. of Recommendations: 3
Gemini reports the following on Joel's value weighted "index" funds: As of January 2026, Joel Greenblatt’s Gotham funds continue to follow his systematic, value-driven framework. Both **GSPFX** and **GARIX** are designed to capture the "value spread" (the difference between what a business is worth and its market price), but they do so with very different risk profiles.
Below is the performance comparison against the **VOO (S&P 500)** based on recent trailing data.
### **Trailing Annualized Returns (CAGR)**
*Data as of December 31, 2025 / January 2026*
| Fund / Benchmark | 1-Year | 3-Year | 5-Year | Since Inception |
| --- | --- | --- | --- | --- |
| **GSPFX** (Enhanced S&P 500) | 16.88% | 21.80% | 14.51% | ~15.05% |
| **GARIX** (Absolute Return) | 16.24% | 16.65% | 14.74% | ~9.01% |
| **VOO** (S&P 500 Index) | 17.88% | 23.01% | 14.42% | ~15.14% (since 2016) |
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### **Fund Analysis & Key Differences**
#### **1. GSPFX: Gotham Enhanced S&P 500 Index**
This is an "Index Plus" strategy. It holds all the stocks in the S&P 500 but **re-weights** them based on Greenblatt's value and quality metrics.
* **Performance vs. VOO:** Over the 5-year period, it has slightly outperformed the index (14.51% vs. 14.42%). However, over the 1-year and 3-year periods, it has slightly lagged. This is typical when mega-cap "Growth" stocks (which Greenblatt might find "expensive") lead the market rally, as his system will naturally underweight them relative to the cap-weighted index.
* **Strategy:** It aims to beat the S&P 500 by simply owning "more of the cheap ones and less of the expensive ones."
#### **2. GARIX: Gotham Absolute Return Fund**
This is a **Long/Short** equity fund. For every $100 you invest, the fund typically buys ~$120 of "cheap" stocks and shorts ~$60 of "expensive" stocks.
* **Risk Profile:** It is designed to be less volatile than the S&P 500. It targets a "net long" exposure of about 50–60%.
* **Performance:** You'll notice its 10-year and "Since Inception" returns (9.01%) are significantly lower than the S&P 500. This is by design—it is not intended to keep up with a raging bull market, but rather to provide steadier, risk-adjusted returns with lower drawdowns.
### **Summary for Investors**
* If you want **index-like returns with a value tilt**, **GSPFX** is the closer alternative to a market-cap fund.
* If you want **lower volatility and a hedge** against market drops, **GARIX** is the structural alternative.
**Would you like me to look up the current "Value Spread" Gotham is reporting for these funds to see if they believe the market is currently overvalued?**
