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Six money managers examine portfolio management strategies in the latest issue of The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info550.htm

TWST: First of all, could you give us a brief overview of Brown Investment Advisory & Trust and your responsibilities there?

Mr. Carey: The firm manages just shy of $5 billion for high net worth individuals and institutions in a multidiscipline format. The bulk of our accounts are with high net worth individuals, close to 80%, and the balance of the business is with institutional clients — foundations, pension plans and endowments. The disciplines that we use within equities are large cap growth and value, small cap growth, and international. We have outsourced the management of international equity to Philadelphia International Advisors, formerly a division of the Glenmede Trust Company. On the fixed income front, we manage both taxable and tax-exempt portfolios.

TWST: Can you explain your investment decision-making process?

Mr. Carey: One thing that differentiates us from other growth managers is our willingness to shop in sectors other than the traditional growth sectors of health care, technology and telecommunications. We have found attractive growth opportunities in more cyclical areas like basic industries, capital goods or consumer durables. We have found some of our greatest successes in areas like that.

TWST: Can you now describe some of your stock holdings and the recent buys that illustrate your philosophy and your investment approach?

Mr. Carey: If I look at a few other highlights in the portfolio, a couple of stocks jump out. We’ve added to our position in Comcast (Nasdaq:CMCSK). We also initiated a position in Smith International (NYSE:SII). Our thinking at the time was that the market was underestimating the opportunity in oilfield services. We really like Smith because they have a unique combination of proprietary technology, a well-defined service business and an up-and-coming distribution business. Certainly the instability in the Middle East is a wild card, but the long-term ramification of this is an increase in domestic exploration and drilling — a big market for Smith.

TWST: How important is tax efficiency to your Fund?

Mr. Carey: It’s something we keep an eye on. The typical investor in our Fund is an individual with tax considerations, so the Fund is managed with a certain level of tax sensitivity. We are happy to put in place transactions that will minimize the taxes distributed to the shareholders of the Fund. The low turnover is specifically designed to benefit the taxable investor.

TWST: Is there anything that you would like to add at this time to give a better picture of your views or of your work to sum things up?

Mr. Carey: Over the next few years, stock selection is going to be critical, as the rising tide may not lift all ships. Thus, I think a fundamentally driven research operation, like the one we have here, is going to work to our advantage in identifying attractive investment opportunities. We are carefully analyzing cash flows, earnings assumptions and balance sheet strength of our target investments. We want to make sure we are accurately forecasting the growth prospects for the intermediate- to long-term horizons; that’s going to be a distinguishing factor for stock returns coming out of this profit recession.

This special Investing Strategies Report includes:

1) Peter F. Ganucheau IV, Principal, Portfolio Manager/Analyst with GSB Investment Management, Inc., examines portfolio management strategies in this timely and deeply informative 11,400-word interview from The Wall Street Transcript.

2) William J. DeRosa Jr., Portfolio Manager with Badgley, Phelps and Bell, Inc., examines portfolio management strategies in this timely and deeply informative 4,500-word interview from The Wall Street Transcript.

3)Jonathan W. White, Senior Vice President and Chief Investment Strategist for Banknorth Investment Management Group, examines portfolio management strategies in this timely and deeply informative 3,100-word interview from The Wall Street Transcript.

4) Geoffrey R.B. Carey and Jane W. Korhonen, both Partner and Senior Portfolio Managers at Brown Investment Advisory & Trust Company, examine portfolio management strategies in this timely and deeply informative 3,500-word interview from The Wall Street Transcript.

5) Richard H. Earnest, Director for HighMark Capital Management, examines portfolio management strategies in this timely and deeply informative 4,900-word interview from The Wall Street Transcript.