New York City, New York, Dec 03, 2001 (The Wall Street Transcript via COMTEX) Five money managers examine portfolio management strategies in the latest issue of The Wall Street Transcript, available at (212/9527433) or http://www.twst.com/info/info463.htm TWST: What are your responsibilities at Bridgeway Capital Management and what is different about Bridgeway? Mr. Montgomery: I founded the advisory firm, Bridgeway Capital Management, in July 1993, and I now manage six of the seven Bridgeway portfolios. We're what you'd call a pure quant shop; we use numbers and statistics and computer modeling for much of what we do. On the actively managed side, we're trying to pick one good stock at a time, with the intent of beating our market benchmark over longer time periods. On the passively managed side, we're using our quantitative skills to try to match the longterm returns of two shareholderfriendly indexes with extreme tax efficiency. Several items in the category "What is different about Bridgeway?" stem from our four business values: integrity, investment performance, cost efficiency, and friendly service. The core item that's different about Bridgeway is the passion with which we pursue them. Also, these four business values interrelate. Take the first one, for example. At Bridgeway, evidence of our commitment to integrity is trying to minimize conflicts of interest. We have no affiliated brokerage, use performancebased fees extensively, close actively managed portfolios at very low levels by industry standards, and do no soft dollar commissions, which means we use our own hard dollars to pay for things like computers and software and research. And since we're using our own money, we have a stronger incentive to manage these costs well. Ultimately, we think this saves our shareholders money, partly through lower commissions, but also through a lean cost structure. A lot of these costs are pretty small individually, but if you add them up, it gets to be quite a big deal. A result of all this is that Bridgeway offers the lowest expense ratio retail fund in America. So our focus on integrity has the added benefit of cost efficiency, our third value, which in turn should also help performance, our second value. You can see that they're definitely interrelated. TWST: John, can you give us examples of stocks that have done well for you in this fund during this year? Mr. Montgomery: It's a passively managed portfolio, so we don't follow the stocks like we do in our actively managed portfolios. But I peek from time to time. You can usually find some interesting stocks by looking at our largest holdings. Since we're normally only buying a few 10ths of a percent of the portfolio in one stock, our largest positions get there by appreciation. In any one year, there are likely to be a number of ultrasmall stocks that go up five and sometimes even tenfold. On the other end of the spectrum, a larger number go bankrupt, completely out of existence. So let's look at the favorable end of the spectrum to see what's done well recently.Viisage Technology (Nasdaq:VISG) is our largest holding. It won't surprise you to hear that this company designs and markets digital identification systems with the aim of reducing identification program costs. This little company's going about its business, with the stock price bouncing around $2 a share until September 11. When the market opened again, it closed the first day at $4.50. It's currently about $10.00. TWST: A hot little niche? Mr. Montgomery: Yes. And obviously we didn't pick this company because we thought it was a great company, or because we wanted to make sure that if terrorists ever did something big we'd be protected, or anything else. We just own a bunch of tiny companies, and in any given time period we are going to tend to have some that do extremely well. This is an example of one. This special ********* Strategies Report includes: 1) Charles E. Helme, Managing Director at Carret & Company LLC, examines portfolio management strategies in this timely and deeply informative 4,900word interview from The Wall Street Transcript. 2) Paul A. Muzzey, President and Jeffrey N. Allsop, Senior Vice President, both at Capital Investment Services of America, examine portfolio management strategies in this timely and deeply informative 4,500word interview from The Wall Street Transcript. 3) John Montgomery, Founder of Bridgeway Capital Management, Inc, examines portfolio management strategies in this timely and deeply informative 4,100word interview from The Wall Street Transcript. 4) John D. Chadwick, Managing Director at The Bessemer Group, Inc., examines portfolio management strategies in this timely and deeply informative 4,400word interview from The Wall Street Transcript. This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript on 12/03/01. John Montgomery CONTACT: The Wall Street Transcript Corporation 67 Wall Street, 16th floor, NY, NY 10005, USA (212) 952 7433 (212) 668 9842 firstname.lastname@example.org URL: http://www.twst.com The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 36 years. Copyright 2001 Wall Street Transcript Corp.