Ultra-Small Company Market

Overview

Investment Objective

To provide long-term capital appreciation through a passive approach to investing in the smallest publicly traded stocks.

Investment Universe

The strategy invests in ultra-small companies, defined as those with market capitalizations in the smallest 10% of companies listed on the New York Stock Exchange, as reflected in the roughly 800 companies included in the University of Chicago's Center for Research in Security Prices Cap-Based Portfolio 10 Index (CRSP 10).

Investment Strategies

Management of this strategy seeks to roughly match the sector and industry makeup and financial characteristics of the CRSP 10 Index. Stocks are roughly equally weighted 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 has high potential to underperform. Bridgeway focuses strongly on trading efficiency and managing bid/ask spreads to the advantage of investors.