The Bridgeway Investment Process

The Bridgeway investment process is based on our belief that a strict adherence to our repeatable quantitative approach is the best way to discover stocks that will provide the strong, dependable performance we seek for investors.

Proprietary Models

We rely on numerous multi-variant quantitative models, all developed and refined here at Bridgeway, to systematically filter the market universe, ranking each stock by measures of attractiveness, downside risk, and other key variables. A wide range of statistics is used to populate the predictive algorithms within each model that evaluate risk and calculate future return potential.

We have great confidence in our models. In fact, we buy only those stocks that our models have ranked as the best opportunities, and we stay fully invested rather than trying to time the markets. We believe this enables us to remove personal bias and human emotion from the decision process.

Diligent Risk Management

Long-term risk is actively managed by recalibrating models, applying multiple models to a single portfolio, and managing exposure to any one stock, industry, or sector. For example, once we take a position, we have strict controls in place that trigger a change if a specific position or sector weighting falls outside our target ranges.

Of course, we’re still human beings. We are disciplined in following our investment process, but we won’t shy away from the use of our professional judgment and experience to follow this simple rule: do not destroy value.

Our reliance on a proprietary quantitative process, driven by a small but very talented and dedicated investment team, gives us a lean cost structure that helps us to aggressively manage trading costs and preserve investor capital whenever possible.

Performance Without Compromise™

In the end, this rigorous investment process is the key to picking one great stock at a time, which we believe allows us to minimize risk and produce market-beating long-term performance.