As the market continued its march higher Thursday, investors were on the hunt for value. For Joel Greenblatt, managing principal and co-chief investment officer of Gotham Asset Management, there are always places to find opportunity.
Greenblatt's investment firm looks at the 2,000 largest companies and ranks them on a daily basis—and then buys 300 of the cheapest names and shorts 300 of the most expensive.
Gotham is long names that Greenblatt said people generally don't like: Energizer Holdings, Lockheed Martin and Procter & Gamble.
Energizer: While sales aren't growing, the company is splitting its battery and personal care divisions. "They're earning huge cash flows, huge returns on capital," he said.
Lockheed Martin: With military engagement in the Middle East winding down, it's obvious why people don't like defense contractors, Greenblatt said. However, Lockheed is "always coming up with great new technologies and you're getting it at a very bargain price."
Procter & Gamble: Greenblatt thinks this is an example of a very high-quality company that earns well over 50 percent returns on tangible capital. He called it "an excellent business at a good enough price."
Then there are the names Gotham is short: Stratasys, Carnival and Salesforce.com.
"They're all eating through cash," Greenblatt said. "They're all destroying capital as they invest, at least the way we look at it."
Stratasys: There is going to be a lot of competition in the 3-D printing space. "Seven times sales is a high price to pay for that, especially if they are not earning cash yet," he said.
Carnival: The company is spending a lot of money to build big ships and doesn't make a very good return on them, Greenblatt noted.
Salesforce.com: Greenblatt said some of Salesforce's growth is through acquisitions, which may not be sustainable. He also thinks it is expensive at seven times sales.
—By CNBC's Michelle Fox.
Disclosure: ENR, LMT, PG, SSYS, CCL and CRM are in Gotham Asset Management's long/short mutual funds as well as its private hedge funds.