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TWST: Edward, tell us first about the sector that you follow at Chase H&Q.

Mr.Snyder: It's the wireless equipment sector. That encompasses everything from mobile cellular systems, which are what most people associate with the sector (that's cell phones and base stations and antennas), and it also includes point-to-point microwave and broadband wireless, wireless-Internet-access products, wireless-LAN products — everything from towers and big base stations all the way down to semiconductor components like gallium arsenide HBT, power amplifiers, and SAW filters. So it's a pretty wide swath from both the perspective of product categories and depth, everything from systems to devices.

TWST: Should Nokia (NYSE:NOK) be a core holding for anyone who wants to be in wireless?

Mr. Snyder: Absolutely. That being said, I think Motorola (NYSE:MOT) is also a very good buy — for slightly different reasons. Motorola had a reorganization two years ago and has moved from a vertically-oriented company to a more horizontal model like Nokia's, where they're focusing more on the market and delivering product based on what consumers want. The big advantage you have with Motorola is that the operating performance of the company is improving and has not recovered to the industry average yet. So without ever growing revenue, without ever gaining share in the market, if they just stood still on the revenue line, they could still see significant improvement in earnings just because they're getting better and better leverage to the bottom line. Of course Motorola is also gaining on the top line. It is growing revenue and gaining share in digital handsets. So you get both effects: you get a growing top line and you get better leverage on the operating line, and that's going to accelerate earnings growth. It will be a duopoly in handsets. Motorola and Nokia are basically taking share from all the third-tier players, which is exactly what we saw last year. I think it will continue through this year. Motorola is another great holding for wireless.