What makes Bridgeway different from other investment managers?
We see the world differently.
We are the leaders of relational investing, which bridges the gap between profit and people.
Relational investing is a statistical, evidence-based investment approach motivated by a passion for servant leadership and global impact which Bridgeway accomplishes by donating 50% of firm earnings to organizations making a positive impact for humanity. Since 1993, putting investors’ interests first has been a hallmark of the firm’s stewardship culture and core values of integrity, performance, efficiency, and service.
What is Bridgeway’s investment philosophy and process?
Our investment process is straightforward and statistically driven. It reflects our fundamental philosophy of putting the investor first, and it is driven by our passion for logic, data, and evidence. Our process seeks to avoid behavioral biases by focusing on objective data gathered from multiple sources over decades and through many market cycles. It is based on sound academic theory and includes a rigorous testing process. At all times we seek to continue improving our process through our investment in ongoing research.
Why does Bridgeway have two families of investment strategies?
We have two families of investment strategies, Select and Omni, designed to meet different investor needs and philosophies. While they are different, both styles incorporate our statistically driven, evidence-based process.
- Select strategies seek to capitalize on how markets work and capture risk premiums through statistical stock selection and multi-factor diversification.
- Omni strategies are designed to capture risk premiums by utilizing broad diversification in specific asset classes.
There are advantages and disadvantages to each of these investment styles, so investors and advisors must decide which style, or combination of styles, will satisfy their investment needs.
What is the personal investment philosophy instilled in Bridgeway by John Montgomery, Founder and CIO?
John Montgomery, founder and CIO, encourages everyone to follow a simple four-step plan for personal investments:
- Structure an asset allocation plan that matches your goals, investing time horizon, and tolerance for risk (getting help from a qualified financial advisor, as appropriate)
- Write the plan down
- Implement the plan
- Rebalance to the plan approximately annually (or as lifestyle changes occur)
For his own investments, John has a high pain threshold in market downturns and does not constantly look at personal account statements. He says this keeps him from obsessing about returns and alleviates undue stress.