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Mutual funds from Bridgeway
tend to be attractive because:
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Bridgeway is one of the most
ethically operated organizations we've ever seen. They are obsessive
about operating in an ethical fashion. This is refreshingly evidenced
by:
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Their honest commentary in official
reports and statements. As an example, see their
investment philosophy.
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Their
code of ethics.
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Their CEO's lack of greed. John Montgomery, Bridgeway's founder, CEO, and portfolio manager, deliberately keeps his total compensation
extremely low by any standard: for the period 1995-2009, his average
salary was $359,986/year. In fact, he instituted a rule that nobody in
the company (including himself) could earn more than seven times the salary of
the lowest-paid employee.
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Their relatively low fees.
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Bridgeway has some very innovative
funds. In particular, they have the smallest-cap passively managed
open-end small-cap fund we are aware of.
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This is the kind of company we like
dealing with. However, their product offerings are unfortunately quite
limited — we are currently recommending only two of
their funds.
For more information on Bridgeway, see:
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Bridgeway's
website.
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"Black
Box with a Heart: Talking with John Montgomery" an article from
Barron's in 2007.
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"Quant
with a Conscience" an article from Financial Advisor in 2006.
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"Standard
bearer: Bridgeway Funds founder Montgomery takes a high road" an interview
from CBS Market Watch in 2004.
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"Bridgeway
founder wins with integrity," an article from USA Today in 2003.
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"Behind
Bridgeway's Coke Formula (and Why "Ultra Small" is the Real Thing): Interview
with John Montgomery," an article from Small Cap Manager in 2003.
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"Who
Says Nice Guys Finish Last? Fund Manager John Montgomery cares about his
shareholders, and it shows," an article from Business Week in 2003.
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"Bridgeway's
Montgomery 'Indexes' the Market's Smallest Companies," an article from
Indexfunds.com in 2003.
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"Engineered
Success," an article from Investment Advisor magazine in 2003.
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"One
of a Kind: The eccentric Bridgeway
boutique is one of 'the fund world's best-kept secrets'," an article
from Money magazine in 2001.
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An
on-line Q&A
session with John Montgomery from Morningstar in 2001 (you may have
to register for free to read it).
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"Bridgeway
Capital," an article from TheStreet.com in 1998 which tells how
Bridgeway would have been the top scoring mutual fund company in its survey of
which mutual fund companies are most shareholder-friendly. Bridgeway
didn't make it onto the list because it was too small a company.
Smaller, but better, apparently. |
This web page contains the current opinions of Eric E. Haas at the time it is
written — and such opinions are subject to change
without notice. This web page is for educational purposes only —
we believe the information provided here to be useful and accurate at the time
it is written.
Information contained herein has been obtained from sources believed to be
reliable, but is not guaranteed.
No investor should invest solely on the basis of information listed here.
Before investing, it is important to consult each prospective investment's
prospectus and consider both its risk/return characteristics and its effect on
your overall portfolio.
This information is not intended to be a
substitute for specific individualized tax, legal, or investment planning
advice. Where specific advice is necessary or appropriate, Altruist
recommends consultation with a qualified tax adviser, CPA, financial planner, or
investment adviser. If you would like to discuss the rationale or support
for any particular idea expressed on this web page, feel free to
contact us. |
