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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/info562.htm

TWST: Please begin with an overview of Church Capital Management and your responsibilities there.

Mr. Walther: Church Capital Management is a registered investment advisor that manages investment portfolios for individuals, pension funds, foundations, corporations, and banks. We were founded in 1987. I’m a senior portfolio manager at Church Capital Management as well as the Chief Operating Officer.

TWST: And what is the investment philosophy at Church Capital Management?

Mr. Walther: We are a value manager, and we could also be considered GARP, which is a growth at a reasonable price philosophy. We have a systematic approach, which is both top down and bottom up with regard to the economy and individual stocks. In the top-down phase, we make a general assessment of the economy, interest rate trends, and the financial markets, and then once we’ve determined our macro trend, we evaluate which industries and sectors within this framework will benefit. Then, given our industry preferences, we focus on sectors where we see value and companies that are undervalued.

TWST: What size capitalization stock do you normally buy?

Mr. Walther: Generally we are considered large cap. Liquidity is one of the parameters of our investment style.

TWST: And how many stocks are currently in the portfolio?

Mr. Walther: Currently, we have a universe of 200-300 stocks, but active positions right now would be 30, diversified over 12 different sectors.

TWST: That’s certainly well diversified.

Mr. Walther: Diversification is a hallmark of the Church Capital style. We will overweight a sector if, given our macroeconomic call, we feel the sector is poised to benefit from macroeconomic trends.

TWST: Using your top-down approach, Jerry, what sectors or industries should investors be looking at?

Mr. Walther: Our general belief right now is that we have an economy that is recovering. The consumer and housing markets have really held in there during a very difficult time. Now we are starting to see, and hope to see over the next two to three quarters, corporate profits not only firm up, but start to accelerate. Also, for a true economic recovery to take place, it is imperative that capital expenditures by major corporations flow through to the companies that provide those goods and services. This capital spending dynamic is essential to having a strong economic recovery. Currently we like the banking/financials and media and entertainment sectors as investments that are poised to do well in a recovery. The media and entertainment sector has been beaten up tremendously, as is typical during times of slow spending and recession. But they also are going to be the first to benefit from any expansion in advertising budgets, which tend to loosen early in a recovery.

TWST: Do you still have PepsiCo in your top holdings?

Mr. Walther: Yes, we do. Given the nature of the markets and the economy, I think investors have gravitated toward PepsiCo (NYSE:PEP). As a company, it’s extremely well run and hitting on all cylinders. The Frito-Lay snack division has been a great performer and is complemented by the newly acquired Quaker Oats brands. They’ve gotten into the sport drink market at number one. They just have hit all the numbers and exceeded all expectations.

This special Investing Strategies Report includes:

1) Sarat Sethi, Principal and Portfolio Manager/Equity Analyst of Douglas C. Lane & Associates, Inc., examines portfolio management strategies in this timely and deeply informative 3,600-word interview from The Wall Street Transcript.

2) Frederic G. Burke, President of Johnson Lemon Asset Management, examines portfolio management strategies in this timely and deeply informative 2,600-word interview from The Wall Street Transcript.

3)Arnold R. Schmeidler, President of A.R. Schmeidler & Co., examines portfolio management strategies in this timely and deeply informative 6,500-word interview from The Wall Street Transcript.

4) Jerome H. Walther, Chief Operating Officer of Church Capital Management, examines portfolio management strategies in this timely and deeply informative 3,000-word interview from The Wall Street Transcript.

5) Donevan E. Kukul, Portfolio Manager with Cohen Klingenstein & Marks, Inc., examines portfolio management strategies in this timely and deeply informative 4,000-word interview from The Wall Street Transcript.

6) Paul C. Hogan, Investment Research Analyst at Fenimore Asset Management, examines portfolio management strategies in this timely and deeply informative 3,900-word interview from The Wall Street Transcript.