Mr. Rayner: We basically handle the vanilla type of investments, bonds, stocks, cash and equivalents. We have been known as a growth stock investor and we are listed in Nelson's "World Best Money Managers" for 10-year equity growth. We have been engaged in buying large and mid-cap stocks of a growth nature. It depends on the objectives and psychology of the client as to how we adhere to that philosophy. Some clients want 100% aggressive growth while some clients desire 100% in bonds, so we span the bridge on asset allocation. Each account is completely different from the others as they are based on the client's desires.
TWST: What are your investment strengths?
We have searched for good growth stocks which have fallen significantly
in price yet have good fundamentals. We have been fortunate this year in
finding five stocks that were within our philosophy. They are growth
stocks, however they fell to a large extent for a variety of reasons.
After preparing a thorough fundamental analysis, we decided to review
their pricing. Based on a sound decision on fundamentals and attractive
prices, we were fortunate in selecting these stocks at low price levels.
Several examples of this procedure included Oakwood Homes (OH, 27 7/16,
SIC2451, CT313), U.S. Filter (USF, 35 13/16, SIC3580, CT370), Diebold
(DBD, 46 1/4, SIC3578, CT750), Green Tree Financial (GNT, 43 13/16,
SIC6162, CT650) and Transocean Offshore (RIG, 94 3/8, SIC1381, CT511).
All of these stocks had fallen substantially in price and were well
below their growth trend valuations. Oakwood, I think, was one of our
more interesting ones.
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