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Four 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/info567.htm

TWST: Could you give us a brief overview of Sunnymeath Asset Management and your responsibilities there?

Mr. O’Mealia: I founded Sunnymeath Asset Management about five years ago and have been managing its investment partnerships ever since. I joined Fox Asset Management back in the fall of 1998 and merged the Sunnymeath partnerships into Fox at that time. I continue to be responsible for all investment decisions in the partnership.

TWST: Is it mostly for high net worth individuals?

Mr. O’Mealia: Thus far it has been because of the relatively small size of the partnerships. Institutions like to see not only a three- to five-year track record, but also a certain level of assets in a prospective investment vehicle. I am pleased that the assets in the partnerships have increased to a level where institutions are starting to take a look at them. We have about 15 million in the partnerships at this point.

TWST: What is the investment philosophy?

Mr. O’Mealia: My philosophy throughout my investment career has always been to be a value investor. What distinguishes what I do is that I am looking for the best companies that fit my value discipline, not the cheapest. I try to buy great companies when they’re out of favor. In the fixed income markets, I look for value opportunities as well, usually in the corporate bond sector.

TWST: So what supermarkets specifically are you investing in right now?

Mr. O’Mealia: Kroger and Safeway appear to be two of the better companies to invest in within the sector. Kroger (NYSE:KR) has the number one market share in 36 of the 48 markets that it’s in. It’s the number two supermarket in another five of those 48 markets. So it truly is well-established and well-entrenched in its areas. It does compete with Wal-Mart in many of its markets. But, as I pointed out, two to three years after Wal-Mart has entered an area, Kroger’s margins have increased and their overall share of the market has also improved. I think that Kroger and Safeway have very strong managements and are well-run companies. Their stocks are presently selling at historically low valuation levels, which I think is compelling.

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?

Mr. O’Mealia: I think one of the things that we are going to have to deal with over the next three to five years that’s different from the past three to five years is that the Federal Reserve has a difficult situation ahead of it. The economy is coming out of this recession with a still leveraged consumer. The problems in the Middle East have escalated to dangerous levels that could affect world oil supplies and prices and the war on terrorism could dramatically affect worldwide economic activity. I think that one of the greatest risks facing the markets today is the possibility that inflation accelerates in the years ahead to a greater-than-expected level.

This special Investing Strategies Report includes:

1) Investing in Biomedical Technology Stocks - Michael P. Walsh, Founder and Managing Partner of Kilkenny Capital Management, LLC, examines portfolio management strategies in this timely and deeply informative 5,000-word interview from The Wall Street Transcript.

2) Investing in International Small Cap Stocks - Thomas Hancock, Partner with Grantham, Mayo, Van Otterloo & Co., LLC, examines portfolio management strategies in this timely and deeply informative 4,500-word interview from The Wall Street Transcript.

3)James P. O'Mealia, Managing Director and Senior Portfolio Manager at Fox Asset Management, examines portfolio management strategies in this timely and deeply informative 4,500-word interview from The Wall Street Transcript.

4) Eric J. Green, Senior Portfolio Manager, Director of Research and Principal at Penn Capital Management, examines portfolio management strategies in this timely and deeply informative 6,100-word interview from The Wall Street Transcript.