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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: As growth investors, to what degree do you use momentum?

Ms. Korhonen: Our investment process exploits the dislocations created by momentum investors. Other than that, momentum is really not part of our investment process. We’re aware of how momentum can create opportunities on both the upside as well the downside. More often than not, a break in momentum will create opportunities for us. When momentum investors walk away from a stock due to short-term factors, we examine the longer-term growth prospects and, if intact, we may buy the stock.

TWST: How many stocks are currently in your portfolios, and does this number fluctuate at all?

Ms. Korhonen: The portfolio tends to have between 40 and 50 holdings. The portfolio currently has 45 names.

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

Ms. Korhonen: We are focused on companies that we believe can grow at a sustainable rate of 15% or more. We are drawn to stocks that can achieve our earnings growth target through top-line growth and improving operating efficiencies. Again, just to be practical about it, we try to make some determination as to how sustainable that growth rate is. Ideally, we would like to own companies for a multi-year period so we target companies operating in large and growing markets. In those cases, we have increased confidence in the ability of the companies to sustain high or even accelerating rates of growth. The research process is very much from the bottom up — driven more by stock selection than by sector allocations. Again, our focus is identifying growing companies in attractive businesses that can continue to stay on a fast track. Very central to our growth strategy is financial flexibility. A strong balance sheet and free cash flow generation will enhance a company’s ability to grow organically throughout the business cycle. It also allows a company to follow an acquisition strategy to achieve its growth targets. Our investment processes also includes a valuation discipline. We have typically used valuation as an execution tool, and to a lesser extent as a stock selection criterion. In other words, we aim to initiate positions at points at which stocks are not reflecting their ability to sustain high levels of growth.

TWST: Do your weightings vary greatly from the S&P 500 sectors?

Ms. Korhonen: Yes, we make active sector bets. We view sector weightings as a way to add to performance. For example, we began last year being materially underweighted in some of the cyclical areas like basic industries and capital goods. As the year progressed and as our expectation for a cyclical recovery developed, we began to increase our exposure to those sectors. Post-September 11, we felt that the combination of a more accommodating Federal Reserve and some fiscal stimulus would increase the odds of an economic rebound. That led us to shift our sectors weightings materially at that time.

TWST: What about some technology names? Is there anything interesting that has taken your attention recently?

Ms. Korhonen: We continue to like semiconductor stocks. As we are in a period of very uncertain end market demand, one area of safety has been making a bet on inventory replenishment. If you look across the food chain within the technology sector, inventories have been worked down over the last 18 months. The replenishment of these inventories has led to an affirming of the fundamentals within semiconductors. The next act will be the need for demand to return to key end markets like wireless and hardware equipment in order to see these stocks move higher. Our exposure in semiconductors includes Intel (Nasdaq:INTC) and Texas Instruments (NYSE:TXN). Another way that we’re playing wireless is through Flextronics (Nasdaq:FLEX), one of the leaders in the EMS industry and the largest producer and manufacturer of wireless handsets in that segment. In fact, they produce all of the handsets for the joint venture between Ericsson (Nasdaq:ERICY) and Sony (NYSE:SNE).

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.