[2007 Archive] News & Commentary
BlackBox With Heart
BARRON’S WebReprint, July 2007
In this interview with John Montgomery, BARRON’S learns that Bridgeway relies exclusively on its purely quantitative, model-driven investment process to manage money, but the firm’s culture is anything but cold and calculating. To the contrary, John Montgomery’s belief in making a difference in the world shines through in every facet of the Bridgeway business model. Of course, the investment results are quite exceptional as well.
The Green Zone: Worry-Free Financial Security – Computers That Print Money
Best Life, July 2007
Best Life describes John Montgomery’s background and how it led him into the investment industry. Bridgeway’s quantitative approach to investing is explained as is the reason for the guardedness and secrecy of the models. The article also explains Bridgeway’s policy of giving 50% of its management company profits to charity and John’s desire to have other companies take a similar approach.
The NUMBERS Guy
Kiplinger’s, June 2007
Kiplinger’s has a Q&A session with John Montgomery focusing on his quantitative investment methods. He doesn’t let day-to-day market gyrations affect his investment decisions. He thinks it is a poor investment strategy to chase hot funds and sell when the funds are down.
Better Know a Stock Picker
The Motley Fool, May 25, 2007
The Motley Fool speaks of John Montgomery’s eclectic background and entry into the Mutual Fund business. John is viewed as “uncommonly ethical” by closing funds to prevent people from chasing hot returns and for accepting responsibility when the SEC accused Bridgeway of improperly calculating performance-based fees. He allows his computer models make all of the investing decisions. John eats his own cooking as that is his only outlet for investing in the stock market. Three of the funds are part of Motley Fool Champion Funds advisor Shannon Zimmerman’s market beating portfolio.
The 25 Best Mutual Funds – Why settle for less?
These funds bear our mark of excellence
Kiplinger’s Personal Finance, May 2007
Kiplinger’s has named Bridgeway Aggressive Investors 2 as one of their best 25 mutual funds. Some of the criteria they use are: no sales loads, no ongoing high expenses, typically $2,500 minimums, and no asset bloat (allowing more money in the fund than is easily invested.) Other considerations are long manager tenure, outstanding long term performance and the way it is achieved, a solid link between risk and return, and whether the manager invests in the fund.
Investing: Mutual Funds: Value Added
Kiplinger.com, May 2007
John Montgomery wants to educate shareholders about the values of long term investing. What upsets him is that people sold Aggressive Investors 2 Fund at the end of 2006 and the beginning of 2007 after several months of poor performance. The Fund has about 3 times the volatility of the S&P 500 and almost certainly will bounce around month-to-month and year-to-year. The Fund covers essentially the entire market through the 6 computer models. There is one technical model, one growth at a reasonable price model, one value model, and three growth models that the investment team is constantly looking to improve.
FundInvestor 500 Funds with the Biggest Fee Cuts
Morningstar FundInvestor, May 2007
Bridgeway Aggressive Investors 2 Fund had its expense ratio dropped from 1.37% at fiscal year end June 30, 2005 to 1.12% at fiscal year end June 30, 2006, primarily because of asset growth in the fund.
Funds that Take a Hard Line on Soft Dollars
Morningstar FundInvestor, March 2007
Morningstar explains how using soft dollar arrangements can put a fund shareholder at a disadvantage because of hidden costs. Three of Bridgeway’s funds are listed as funds worth a look because they do not use soft dollars. It also says that John Montgomery testified before Congress about his belief that soft dollars should be banned.
Buyside Snapshot – The Responsible Trader
Traders Magazine, March 2007
Dick Cancelmo, Balanced Fund Manager and head of trading explains how Bridgeway is able to maintain an unbundled commission rate of seven-tenths of 1 cent. Bridgeway doesn’t pay for outside research and does 90% of its trades electronically. Traders Magazine also describes Dick’s background and love for options trading.
Five Domestic Fund Managers that Deserve More Attention
Morningstar’s Fund Spy, February 20, 2007
Morningstar has listed five domestic-stock mutual fund managers that deserve more acclaim than they have received. John Montgomery is listed as one of those managers for Bridgeway Large-Cap Value Fund. The management team uses a quantitative discipline to find both growth and value stocks. The fund invests in roughly 80 stocks while keeping turnover modest. The fund can be volatile as it can have sizable stakes in individual sectors, but similar approaches in other Bridgeway Funds have been encouraging. Bridgeway has been an exceptionally fundholder-friendly firm.
Five Great Funds for 2007
Kiplinger.com, January 2, 2007
Kiplinger’s currently believes the place to put the bulk of investment money is in large-caps with an emphasis on growth companies. One of their five favorite mutual funds for this purpose is Bridgeway Aggressive Investors 2 Fund. The Fund invests in stocks of all shapes and sizes. It can be a very volatile fund, but if you can hold on through the inevitable dips, it should serve investors well over the long-term. John Montgomery uses computer models to pick stocks for this fund, but he doesn’t reveal the inner workings of the models. Some of the models look for growth stocks and some look for under-valued stocks.
"We tell job applicants that, if they want to make millions right away, they should look elsewhere." Yet the Bridgeway funds usually trounce their benchmarks.
-Talking with John Montgomery
BlackBox With Heart
BARRON’S WebReprint, July 2007