John Montgomery, the President and CEO of Bridgeway Capital Management, shares his unique journey from engineering to finance, highlights his firm's dedication to philanthropy by donating half of profits to support war crime victims, and discusses the evolution and strategic advantages of ETFs in investment. He dives into the intricacies of factor-based investing, blending metrics for optimal returns, and emphasizes the importance of a long-term perspective in navigating market volatility. Montgomery also reflects on mentorship and cultural influences in finance.
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question_answer ANECDOTE
Spousal Support Influenced Career Change
John Montgomery and his wife discussed his career shift to finance with no guarantees, highlighting her strong support.
She agreed as long as their daughters could still go to college and questioned involvement in cocktail parties.
insights INSIGHT
Sophisticated Multi-Metric Value Approach
Bridgeway integrates multiple value metrics like PE, price to sales, and price to book for more stable returns.
This mix inadvertently includes quality factors, reducing exposure to value traps.
insights INSIGHT
Small Size Enables Trading Edge
Bridgeway's small size gives them a competitive advantage in trading and accessing less liquid stocks.
They can efficiently trade smaller positions and invest in a larger effective universe than rivals.
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Barry speaks with John Montgomery, President, CEO, Founder and Portfolio Manager of Bridgeway Capital Management. His responsibilities include the firm’s strategic direction, investment management and risk oversight, portfolio management, and mentoring. John holds a Bachelor of Science in Engineering, a BA in Philosophy from Swarthmore College, and graduate degrees from MIT and Harvard Business School. Later, as a student at Harvard, he investigated methods to apply modeling to portfolio management and began applying these methods to his own investments in 1985. John left the transportation industry in 1991 to perform full-time research on his investment models prior to launching Bridgeway in 1993.
Masters in Business 
