Evidence tells us that emotion, when investing, is the primary threat to long-term success. Instead of acting on hunches or theories, we believe in acting with discipline, based upon decades of research and data.
—John Montgomery, Founder and Chief Investment Officer
The Investing Principles That Support Everything We Do
Data Drives Everything
We believe statistical analysis of data over decades and market cycles offers insight into investments.
Factors Shape Returns
Equity returns can be broken down into factors, which are proxies for risk and return drivers. We spend significant resources researching and evaluating factors for our clients’ portfolios. Our objective is to understand how multiple factors impact each other within any given strategy.
Strong Factor Exposure and Diversification Improves Portfolios
Our research indicates that strong factor exposure can provide higher returns but at the risk of more volatility. We address that risk through diversification — from factors, models, or holdings — which can also increase the consistency of returns.
Discipline, Research, and Continuous Investment Produces Results
Success is realized through continuous investment in research and a disciplined process, not through market timing. We are firm believers in a disciplined and repeatable investment process that strives to meet our clients’ goals.
We are driven by four investment principles. It’s these principles that drive us every day to produce the investment results expected by our clients. All portfolios at Bridgeway are team managed and continuity is not dependent on any one person. Cross-training is thorough and ongoing, and documentation is in place for all critical aspects of the investment process.