Ultra-Small Company

Objective

In managing ultra-small company portfolios, we seek to provide long-term capital appreciation through investment in the smallest publicly-traded stocks.

Investment Process

Benchmark
Security selection is designed to produce a portfolio that roughly matches the sector and industry makeup of the CRSP 10 Index.

Investment Universe
Bridgeway defines ultra-small companies as those with market capitalizations in the smallest 10% of companies listed on the New York Stock Exchange, as reflected in the roughly 1800-2000 companies included in Chicago’s Center for Research in Security Prices Cap-Based Portfolio 10 Index (“CRSP 10”).

Security Selection and Weighting
Stocks are weighted roughly equally at time of purchase, with initial position weights generally less than 0.5%. A company may be excluded from the portfolio if Bridgeway believes it is on its way to bankruptcy. Bridgeway focuses strongly on trading efficiency and managing bid/ask spreads to the advantage of shareholders.

Sell Decisions

Bridgeway employs a buy and hold approach to investing under this style. Factors which may result in the sale of some or all shares of a particular security include:

• Rebalancing of the portfolio to follow the sector and industry representation of the CRSP 10 Index
• Tax loss harvesting
• Liquidity considerations
• Market capitalization guidelines

Available Investment Vehicles