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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: Can you give us a brief overview of Cohen, Klingenstein & Marks and your responsibilities there?

Mr. Kukul: We are a large cap growth manager. That is our only product. We have about 22 people on staff and $3.5 billion under management. There are six investment professionals, who act as economists and analysts. We work as an investment committee. The three principals and I are part of the investment committee. As a large cap growth manager, we have developed a three-step investment process. The first step is to develop our top down economic view. From there we move on to a proprietary quantitative screen which, in essence, is a dividend discount model that allows us to screen candidates for consideration. Finally, we move on to our traditional fundamental analysis that we then apply to that smaller group of stocks. Basically, that’s an outline of how the investment process works. In that first step of developing our top-down view, we try to assess changing world events and develop our economic forecast from there. Clearly, as conflicts are currently arising around the world, that’s obviously going to play into how we look at the world long term. It also helps us to determine what we are going to emphasize in the portfolio, and what to avoid. We try to not only determine how that will affect long-term trends, but where we are in a particular economic cycle, for example, whether we’re in a pro interest rate environment or an environment where political trends are shaping economic policy. We try to determine where we stand relative to the consensus, how we differ from that. We try to focus more specifically on the forces that move the economy through cycles — durable goods production, inventories, labor availability, manufacturing, real estate; things of that nature help us get a clear picture on where we believe the larger macro trends are headed. We’re not trying to determine targets for those particular issues. We’re not making any precise predictions on those statistics; rather, we’re just trying to determine a very broad pattern that we see developing. That’s what helps define the character of the portfolio and outlines the portfolio’s attributes.

TWST: What about your exposure to financials and health care? Do you have any picks in those areas?

Mr. Kukul: In health care, as I’ve mentioned, we’ve actually cut back our exposure somewhat. We sold Bristol-Myers (NYSE:BMY) a while back because of some product pipeline issues. Within financials, we are invested in Citigroup (NYSE:C), which gives us a lot of exposure to a lot of different businesses. There, size is what’s attractive to us. Citigroup is the world’s largest diversified financial services franchise. It’s in 102 countries and has close to $1 trillion in assets. You have developing markets, emergence of the middle class, and the demand for financial products in those particular areas. The secular trend of the global financial services industry is that the consolidation should continue to benefit those companies with proven acquisition track records. So again, there’s a lot of opportunity for someone like Citigroup, with its size, to leverage the advantages worldwide.

TWST: What trends will affect the large cap growth sector in 2002 and 2003?

Mr. Kukul: It seems day to day you could find a reason to be optimistic or pessimistic. Overall we’re still looking at some cyclical trends that are playing out. For example, the spending in technology has been pushed out for numerous reasons, but the fact remains that it still hasn’t happened. The trends that we’re looking for are stronger profit numbers, stronger earnings numbers, continued strength from the consumer, improving productivity.

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.