Investment Piece - Large Cap GrowthFund

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Calvert MANAGED BY
BRIDGEWAY CAPITAL
Large Cap Growth Fund (CLGAX) MANAGEMENT

A Disciplined, Multi-Model Approach

Portfolio Management Overview

After a rigorous review process, Calvert selects world-class sub-advisors, monitoring
their investment strategy and results on an ongoing basis.
John Montgomery is the
founder of Bridgeway Calvert Large Cap Growth Fund, a large-capitalization stock mutual fund managed
by Calvert sub-advisor Bridgeway Capital Management, Inc. (Bridgeway) of Houston,
Capital Management.
Texas, combines active management with a disciplined, quantitative approach.
With over 15 years of
Bridgeway:
investment industry experience and
I Was founded by John Montgomery in 1993 and had approximately
30 years working with computer $6 billion in assets under management as of March 31, 2008.
models, Mr. Montgomery is lead port- I Has a five-person investment management team, led by
folio manager of the investment John Montgomery, as well as a five-person trading team.
team that manages Calvert Large I Features a strong team structure and offers an employee stock

Cap Growth Fund. He holds a B.A. in ownership program.
I Is community focused, giving away 50% of net profits to charitable causes.
Philosophy and a B.S. in Engineering
from Swarthmore College. In addi-
tion, he has a master’s degree in Investment Approach
Engineering from M.I.T. and an MBA
Active, bottom-up stock selection using a disciplined, quantitative approach
from Harvard.
GOAL:
Mr. Montgomery and Bridgeway Seeks to exceed the total return of the stock market, primarily through capital
appreciation, over long periods of time at a level of risk roughly equal to that
have been featured in USA Today,
of the Standard & Poor’s 500 Index, which includes 500 leading large-cap U.S.
BusinessWeek Online, and Kiplinger’s companies. The S&P 500 Index with dividends reinvested serves as a proxy for the
Personal Finance. “stock market” in this objective. (An investor cannot invest directly in an index.)
INVESTMENT PROCESS:
Bridgeway employs a disciplined, quantitative strategy using multi-factor com-
puter models to identify companies with above-average growth and momen-
tum characteristics. The modeling process is designed to substantially remove
emotion and subjectivity from the investment process. Mr. Montgomery says,
“While it is human nature to want to override these models with qualitative or
subjective data, we believe that is not usually the best course of action.” About
80% to 95% of the Fund is invested in large-company stocks and approximately
two-thirds of the Fund is invested in growth companies.
A key part of the firm’s investment philosophy is to stay fully invested and
avoid market timing. In addition, Bridgeway manages the portfolio to control
trading costs and for tax efficiency. Bridgeway’s investment process features:
Multi-Factor Computer Models: To help manage risk and diversify across styles,
even within the large-cap growth category, Bridgeway uses multiple different
multi-factor computer models to help identify attractive, growth-oriented com-
www.calvert.com panies. Most models are driven primarily by fundamental data, such as sales
and earnings, culled from a company’s financial statements. The models also
generally include a technical component that analyzes data such as trading
price and volume. These models are loosely categorized as growth, momentum,
value, and risk reduction.
“We don’t rely on outside Investment Approach (continued from front)

Independent Research: The firm is fiercely independent in its company research
analysts’ research when and analysis. The portfolio team does not talk to company management or
Wall Street analysts, unless it is to verify data. The team inputs publicly available
quarterly financial and technical data from sources such as the SEC/EDGAR data-
bases. Comments Mr. Montgomery: “When it comes to picking stocks, we only
evaluating companies for
engage in activities where we think we have a leg up on the market. When you
are reading someone else’s research, other people are reading that too, so where’s
the advantage?” That’s why the firm is extremely disciplined in relying on its own
investment. Instead, we
internal analyses and computer models in selecting stocks for the Fund.

RISK:
follow a highly disciplined You could lose money on your investment in the Fund, or the Fund could under-
perform, for any of the following reasons: a) the stock market may decline in
value b) the individual stocks in the Fund may not perform as well as expected,
approach that relies on and/or c) the Fund’s portfolio management practices may not work to achieve
their desired results. In addition, the use of stock index futures and options
could add to, rather than decrease, risk.
our own internal analyses
Sell Discipline

and data.” The firm’s sell discipline is mainly driven by two factors. First, a company becomes
a potential sell candidate when changes occur in its fundamental or technical
characteristics that significantly lower its ratings. Second, stocks are sold as part
— Portfolio Manager
of the normal portfolio trimming that occurs as more highly rated companies
John Montgomery replace lower-rated ones.
Another part of the sell discipline is that if a particular sector or industry group,
such as the technology sector, becomes overweighted and is viewed as having
a high level of risk, then positions in that area will be trimmed or deleted. This
risk-management control is in place to limit the level of portfolio risk relative to
More Information the S&P 500 Index.

For more information on any Double Diligence®
Calvert fund, please contact your
Calvert’s equity research process has two integral components:
financial advisor or call Calvert at a rigorous review of financial performance plus a thorough
assessment of corporate integrity. Only when a company meets
800.368.2748 for a free prospectus.
our standards for both do we invest.
An investor should consider the
Calvert’s Social Research Department evaluates companies for the Fund accord-
investment objectives, risks, charges, ing to criteria in seven broad areas of concern: Governance and ethics, the
Environment, Workplace issues, Product safety and impact, International opera-
and expenses of an investment
tions and human rights, Indigenous Peoples’ rights, and Community relations.
carefully before investing. The
May lose value. Not FDIC Insured. No Bank Guarantee. Not a Deposit.
prospectus contains this and Not NCUA/NCUSIF Insured. No Credit Union Guarantee.

other information. Read it carefully Calvert funds are available at NAV for RIAs and Wrap Programs.
Not all funds available at all firms.
before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc.,
Visit www.calvert.com for current member FINRA, a subsidiary of Calvert Group, Ltd. #6150-200805

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