The article summaries listed below contain, among other things, information related to Fund performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For each Fund's standardized returns as of the most recent calendar-quarter end please ClickHere.

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Archived Articles

Kiplinger.com
“Where to Find Good Funds”
December 12, 2006

Kiplinger’s suggests looking at companies that specialize in mutual funds to find superior funds.  Banks, insurance companies and brokerage firms all manage mutual funds as a sideline and not as their primary focus.  Bridgeway, a quant firm under the leadership of John Montgomery, is one of the firms they list as notable examples of first-class mutual fund firms.

MSN Money Online
“The Perfect Portfolio for 2007”
December 12, 2006

Tim Middleton writes that it is the time of year to take a hard look at your portfolio and suggests seven best-of-breed equity mutual funds.  Bridgeway Small-Cap Value is included in the list and is described as computer driven, low expense ratio and extremely volatile due to its focus on small stocks.

Barron’s Online
“Hitting Singles with Stock Options”
December 12, 2006
Q&A with Dick Cancelmo, portfolio manager of Bridgeway’s Balanced Fund.

Dick gives the analogy of the Fund’s investment approach to that of hitting singles in baseball while avoiding swinging for the long ball.  The use of stocks, bonds and options within the Fund is explained along with the Fund’s quantitative approach.

Financial Advisor Magazine
“Quant with a Conscience – For Bridgeway Funds founder
John Montgomery, investing is about more than money”
October 2006

John Montgomery views philanthropic work as part of Bridgeway’s mission and therefore donates half of Bridgeway’s investment advisory fee profits to charities, with a particular focus on small, grass-roots organizations.  Other unique philosophies at Bridgeway include a seven-to-one salary cap where the highest paid Partner (employee) can’t make more than seven times the lowest paid Partner, and Bridgeway’s dependence on word of mouth, media coverage and performance charts instead of a large marketing budget to attract shareholders.

John Montgomery received an Masters degree in Engineering from MIT and an MBA degree from Harvard and was director of Operations for the Houston Metropolitan Transit Authority when he decided to pursue his real passion – investing.  He established Bridgeway Capital Management in 1993.  Bridgeway now has 11 funds and over $4.5 billion under management.

Kiplinger.com
“Brands You Can Trust””
September 2006

Kiplinger picked their twelve favorite Mutual Fund families, 3 department store fund families where you can find all you need under one roof, and 9 boutique families which offer limited selections.  Bridgeway was one of their boutique selections.  One reason for the selection was performance-based management fees and one negative was high volatility among most of the funds.  Their picks within the family were Aggressive Investors 2, Small-Cap Growth and Ultra-Small Company Market Funds.

Morningstar FundInvestor
FundInvestor Portfolios
“Great Alternatives to Our Portfolios’ Closed Funds”
September 2006

Morningstar FundInvestor has designed three portfolios of mutual funds to suit investors with a variety of goals and time horizons.  Bogle Small Cap Growth, which recently closed, was a mutual fund pick within one of the portfolios and they suggested Bridgeway Small-Cap Growth Fund as an alternative.  They are both run by quant managers and both keep costs modest and close at low asset levels.

Morningstar
“Fund Picks and Pans”
August 1, 2006

Morningstar is of the opinion that there are buying opportunities in the largest cap stocks.  They have, in addition to their other selections, picked Bridgeway Blue Chip 35 Index Fund for its very large cap focus and its tax-friendliness.

MorningstarFundInvestor
“Five Funds that Beat ETFs”
July 2006

Bridgeway Ultra-Small Company Market Fund (1) is listed as one of five funds that might serve as an alternative to Exchange Traded Funds because of its tax management and low expense ratio.

Morningstar Fund Spy
“Our Favorite Quant Funds
(Can a computer pick stocks better than your active manager?)”
July 18, 2006

Bridgeway Large-Cap Growth Fund is listed as one of Morningstar’s three favorite quantitative mutual funds.  Some reasons for the pick are lower volatility, lower turnover and an expense ratio that is lower than the median expense ration for similar funds.

The New York Times
“Producing Strong Results With a Secret Strategy”
July 9, 2006

John Montgomery will reveal very little about his quantitative models and their inner workings in order to protect his shareholders.  Although Bridgeway is known for its prowess at picking small cap stocks, the models work on other areas of the market as well.  For instance, the Balanced Fund (2,3) was created to offer a much lower volatility fund that invests in large cap stocks, bonds, options and occasionally futures.

 The New York Times
“How a Computer Knows What Managers Don’t”
July 9, 2006

There are some advantages and disadvantages to quantitative investing. Some of the positives are the ability to examine a much larger universe of stocks, generally smaller expense ratios, and a lack of human emotion in the stock picking process.  Some of the negatives are reliance on historical information, an inability to assimilate new information quickly and generally higher turnover ratios.

Louis Rukeyser’s Mutual Funds
“Growth and Income – Safer Option?”
July 2006

Dick Cancelmo manages the Balanced Fund (2, 3) with the goal of 40% of the volatility of the S&P 500 Index.  He does this by investing at least 25% in bonds (mainly Treasury Bonds), 45% in S&P 500 stocks, and the remaining 30% split between growth and value stocks.  He also uses an options strategy designed to lower the risk of the Fund’s equity exposure while also creating some income.

Sound Mind Investing
Money Talk
“Q&A with John Montgomery of the Bridgeway Funds”
July 2006

John Montgomery says that quantitative investing methods, Bridgeway’s culture around values, community, shareholders and partners, and answering the question “What’s in the best, long-term interest of our current shareholder?” are the main reasons for the success of Bridgeway.  He also discusses details of Bridgeway’s giving to causes such as peacemaking, fighting genocide and education.

Kiplinger’s Retirement Report
“The 25 Best Mutual Funds”
June 2006

Bridgeway’s Aggressive Investors 2 (1) and Small-Cap Growth Funds (1) were 2 of the top 25 funds picked by Kiplinger’s.  Some of their criteria were long-term performance history, level of risk and management’s stock picking strategy.

Daily Record (Morristown, NJ)
Boroson on Money
“Mutual Fund Family is a Winner”
June 4, 2006

Bridgeway is complimented for being no-load, having low expenses, closing funds early, capping salaries at 7 times the lowest salaried employee, and giving half of its profits to charity.  Richard Cancelmo manages the Balanced Fund (2,3) with 45% in S&P 500 stocks, 15% each in a mixed bag of growth and value stocks and 25% in bonds, mostly treasuries.  Options are written against typically 22% of the stocks to create some income.  The result is a beta (4) of 0.37 against a mid-cap index.

FundAlarm.com
Stars in the Shadows
“Bridgeway Balanced: the least visible, least volatile offering in the Bridgeway Family, Balanced is an inexplicably tiny, superior core holding”
June 2006

The Balanced Fund (2, 3) is described as giving some equity exposure to mitigate the risk of massive losses and as a dampener to the volatility of an aggressive portfolio.  The portfolio is managed with a combination of stocks, bonds, covered calls and secured puts.  The portfolio is designed “to provide a high current return with short-term risk lower than or equal to 40% of the stock market.”

Investor’s Business Daily
Mutual Fund Profile
“Taking the Emotion Out of Investing”
March 29, 2006

John Montgomery uses 5 quantitative models that don’t correlate well to pick stocks which helps control risk and volatility.  One model uses technical factors, one uses valuations, one emphasizes growth at a reasonable price and the other two are opportunistic.

The Wall Street Transcript
December 3, 2001
"Money Manager Interview"

The Wall Street Transcript interviews John Montgomery on his investment philosophy.
(Click here for TWST 2001 article)

The Wall Street Transcript
October 4, 1999
"Money Manager Interview"

The Wall Street Transcript interviews John Montgomery on his investment philosophy.
(Click here for TWST 1999 article)