U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Bridgeway Capital Management, Inc. and John Noland Ryan Montgomery

On September 15, 2004, the SEC instituted and simultaneously settled administrative and cease-and-desist proceedings against Bridgeway Capital Management, Inc. and its founder John Noland Ryan Montgomery. The SEC found that between July 1995 and March 2004, Bridgeway Capital, at the direction of Montgomery, charged three of the Bridgeway Funds more than $4.4 million in excessive performance fees. As part of the settlement, Bridgeway Capital must pay the $4.4 million plus prejudgment interest (totally nearly $4.9 million) to reimburse affected fund shareholders. The Funds affected were the “Aggressive Investors 1” fund, the “Aggressive Investors 2” fund, and the “Micro-Cap Limited” fund. For more information about the SEC’s action, you can read Administrative Proceeding Release No. 2294 (Sept. 15, 2004).

Under the terms of the SEC's Order, an Independent Distribution Consultant (IDC) submitted a distribution plan to the SEC.  The SEC approved the plan. You can read the SEC's Order approving the plan of distribution and appointing Administrator.  On June 15, 2007, the IDC directed the first distribution consisting of 42,438 checks totaling $4,578,476.11 to affected fund shareholders.   The IDC anticipates that a subsequent distribution to the remaining affected fund shareholders will be made before July 16, 2007. 

Investors can obtain additional information about the distribution process by visiting the IDC’s website or by calling the Administrator of the Distribution Plan at (800) 364-3565, Monday through Friday, 9:00 a.m. – 5:00 p.m. Central Time.


Modified: 06/18/2007