Offering long-short “hedge fund” capabilities at mutual fund prices1
Seeking returns uncorrelated with stock market indexes2
Drawing from Bridgeway’s extensive research on intangible capital intensity3
Limiting the opportunity—Fund will close when net assets reach $100-$150 million4
1 Per eVestment, the median fee for market neutral hedge fund strategies is 1.5% management fee plus performance fee of 20% of appreciation. This management fee is in addition to potential upfront fees, lock up periods, high minimums, high leverage (debt), sometimes poor oversight, and more complex tax reporting. Per Morningstar, the median management fee for mutual funds in the market neutral category is 1.25% with no performance fee. Bridgeway Global Opportunities Fund is offered at a flat 1.25% management fee and caps expenses at 1.50% of net assets. Gross (Net) expense ratio: 3.06% (1.68%). The investment adviser to the Fund is contractually obligated, until at least November 1, 2025, to waive fees and/or pay Fund expenses. Please refer to the prospectus for more information. Why is Bridgeway giving up the opportunity to earn a performance fee?
2 Based on returns correlated with the S&P 500 and MSCI All Country World IMI stock market indexes.
3 See “Introduction to Intangible Capital Intensity” and “Measuring Global Intangible Capital Intensity: A Global Analysis .”
4 The Fund’s adviser, Bridgeway Capital Management, will close Bridgeway Global Opportunities Fund to new investors when net assets reach the range of $100-$150 million based on the prior day close. Why would Bridgeway close a fund at such a low level?
Expenditures on intangible capital—such as research and development, general sales, and administration—have increased in recent decades. However, accounting standards have not kept pace. Bridgeway’s Global Opportunities Fund applies our research on intangible capital intensity, published in three peer reviewed articles, in 35 countries across the globe.
Measuring Intangible Capital Intensity: A Global Analysis
The Adviser believes that the Fund is appropriate as:
The Fund is not an appropriate investment for short-term investors or those trying to time the market.
While ETFs do offer some tax efficiency and cost advantages over mutual funds, they present some operational restrictions in this case. ETFs are unable to close to new investments, preventing them from holding less liquid securities in proportion to a target or model. In addition, shorting individual stocks inside an ETF can be an issue. Mutual funds can handle all these items.
The four members of the management team bring together extensive experience in international and US equity strategies, quantitative research, and risk management. They have a robust background in developing innovative solutions, spanning global, developed, and emerging markets. With a strong track record of integrating quantitative models and rigorous research, the team is dedicated to delivering scalable investment strategies while actively supporting client relationships and thought leadership initiatives across the global investment landscape.
Jacob Pozharny, PhD
John Montgomery
Christine Wang, CFA, CPA
Elena Khoziaeva, CFA
In addition to the experience of the Fund managers, Bridgeway has over 30 years of proven experience in capacity-constrained investment strategies—ones demanding a smaller, more nimble investment firm. As a purpose-driven firm, we stand apart by donating 50% of the adviser’s, Bridgeway Capital Management’s, profits, while focusing on our clients (investors), colleagues, and the world community. These elements of our unique culture contribute to our numerous awards as a great place to work.
Larger firms and funds with many billions under management are often too big to invest in smaller companies. Reasons for this can include ownership limits, trading costs, and number of company shares available. As an example, $1 million of an illiquid stock is 1% of a $100 million Fund, but 0.1% of a $1 billion fund. If such a company’s price were to double, its impact is meaningful in the smaller fund and tiny in the bigger fund.
We do not believe in timing the market. We do believe in managing risk. Our current view is that equity, inflation, and interest rate risks are all at high historical levels. Bridgeway Global Opportunities seeks to dial down the risk exposure to all three and provide increased diversification.
Once the Fund reaches $100-$150 million in assets, it will close, and the strategy will only be available through larger separately managed accounts and our private pooled fund structure.
Institutions typically do not want to be first movers or own more than a particular percentage of a strategy. As an independent boutique firm, we could pursue a partnership with a distribution organization that typically takes half of the fee revenue earned on the first investments, known as “seed capital.”
As we considered this, we thought, “Why not share that half of revenues with the investors/mutual fund shareholders themselves, rather than with a sales organization?” The concept was born:
Reduce the fee substantially,
Offer Global Opportunities to mutual fund investors, but close it to new investors when the seed capital is raised,
Then charge the normal higher fee (including performance fees) to subsequent investors in a classical private pooled fund (hedge fund) investment vehicle with a higher investment minimum.
We hope to attract shareholders who appreciate the lower fee, the strategy design and execution, daily fund pricing and liquidity, annual independent audit, and who plan to remain invested years beyond the close of the mutual fund to new investors.
To invest in the Bridgeway Global Opportunities Fund, you can either:
For more information, contact the Bridgeway team.
Disclosures:
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information are in the prospectus, a copy of which may be obtained by calling 800-661-3550 or visiting the Fund's website at bridgewayfunds.com. Please read the prospectus carefully before you invest.
Investing involves risk. Principal loss is possible. The Fund’s use of derivatives, swaps, and leverage can magnify the risk of loss in an unfavorable market, and the Fund's use of short-sale positions can, in theory, expose shareholders to unlimited loss. The Fund invests in foreign securities, which involve greater volatility and political, economic, and currency risks, and differences in accounting methods. These risks are greater in emerging markets. The Fund is new and has no operating history.
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Bridgeway Capital Management, LLC™ or any other affiliate.
| Ticker | Category | Benchmark | Inception |
|---|---|---|---|
| Aggressive Investors 1 Fund | |||
| BRAGX | Large-Cap Blend | S&P 500 Index | 08/05/1994 |
| Global Opportunities Fund | |||
| BRGOX | Equity Market-Neutral | FTSE 3-month Treasury Bill | 10/15/2024 |
| Managed Volatility Fund | |||
| BRBPX | Option Trading | S&P 500 Index | 06/30/2001 |
| Small-Cap Value Fund | |||
| BRSVX | Small Value | Russell 2000 Value Index | 10/31/2003 |
| Ultra-Small Company Fund | |||
| BRUSX | Small Value | RUSSELL_MICRO Index | 08/05/1994 |
| Ticker | Category | Benchmark | Inception |
|---|---|---|---|
| Omni Small-Cap Value Fund | |||
| BOSVX | Small Value | Russell 2000 Value Index | 08/31/2011 |
| Ultra-Small Company Market Fund | |||
| BRSIX | Small Value | RUSSELL_MICRO Index | 07/31/1997 |
| Last 3 Months | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Since Inception | Inception Date |
|---|---|---|---|---|---|---|---|
| Aggressive Investors 1 Fund | |||||||
| 9.17% | 28.40% | 50.24% | 6.65% | 12.16% | 7.71% | 11.80% | 08/05/1994 |
| Global Opportunities Fund | |||||||
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10/15/2024 |
| Managed Volatility Fund | |||||||
| -0.91% | 5.91% | 10.61% | 4.01% | 6.35% | 4.86% | 4.47% | 06/30/2001 |
| Small-Cap Value Fund | |||||||
| -6.30% | 2.98% | 24.82% | 2.95% | 16.56% | 9.76% | 8.91% | 10/31/2003 |
| Ultra-Small Company Fund | |||||||
| -3.08% | 3.50% | 30.55% | 1.63% | 15.41% | 5.94% | 12.48% | 08/05/1994 |
| Last 3 Months | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Since Inception | Inception Date |
|---|---|---|---|---|---|---|---|
| Omni Small-Cap Value Fund | |||||||
| -5.94% | 2.37% | 25.88% | 5.49% | 13.29% | 8.14% | 10.84% | 08/31/2011 |
| Ultra-Small Company Market Fund | |||||||
| -2.24% | 4.07% | 30.04% | -6.10% | 8.20% | 5.43% | 9.12% | 07/31/1997 |
| 1 Quarter | YTD | 1 YR | 3 YR | 5 YR | 10 YR | 15 YR | Since Inception | Inception Date |
|---|---|---|---|---|---|---|---|---|
| Aggressive Investors 1 Fund | ||||||||
| 7.49% | 26.06% | 40.96% | 8.00% | 11.87% | 7.81% | 10.40% | 11.76% | 08/05/1994 |
| Global Opportunities Fund | ||||||||
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10/15/2024 |
| Managed Volatility Fund | ||||||||
| 0.85% | 5.62% | 10.44% | 4.46% | 6.32% | 4.85% | 5.32% | 4.47% | 06/30/2001 |
| Small-Cap Value Fund | ||||||||
| 8.90% | 5.71% | 19.76% | 6.00% | 17.36% | 10.72% | 11.89% | 9.08% | 10/31/2003 |
| Ultra-Small Company Fund | ||||||||
| 9.54% | 4.75% | 26.72% | 2.53% | 15.32% | 6.41% | 9.23% | 12.56% | 08/05/1994 |
| 1 Quarter | YTD | 1 YR | 3 YR | 5 YR | 10 YR | 15 YR | Since Inception | Inception Date |
|---|---|---|---|---|---|---|---|---|
| Omni Small-Cap Value Fund | ||||||||
| 8.68% | 5.26% | 23.29% | 7.97% | 14.17% | 8.93% | — | 11.15% | 08/31/2011 |
| Ultra-Small Company Market Fund | ||||||||
| 8.40% | 3.80% | 19.99% | -6.47% | 7.86% | 5.88% | 8.89% | 9.14% | 07/31/1997 |
The total annual fund operating expense ratio prior to any fee waiver and/or expense reimbursement for each Fund are as follows: Aggressive Investors 1, 0.32%; Ultra-Small Company, 1.20%; Ultra-Small Company Market, 0.78%; Small-Cap Value, 0.86%; Omni Small-Cap Value, 0.62%; Managed Volatility, 1.27%.
The total annual fund operating expense ratio after any fee waiver and/or expense reimbursement for each Fund are as follows: Ultra-Small Company Market, 0.75%; Omni Small-Cap Value, 0.47%; Managed Volatility, 0.95%.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. For the most recent month-end performance, please click here or call 800-661-3550. Periods of less than one year are not annualized.Before investing you should carefully consider the Fund's investment objectives, risks, charges, and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 800-661-3550 or clicking here. Please read the prospectus carefully before you invest. Total return figures include the reinvestment of dividends and capital gains. Some of the fees were waived or expenses reimbursed; returns would have been lower had this not been the case.
The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Bridgeway Capital Management, LLC ™ or any other affiliate.
At Bridgeway, we believe a disciplined, statistical process — grounded in academic theory and fundamental data over long periods of time — drives success in long‐term investing.