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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: What are your risk management techniques? How are you controlling investment risk?

Mr. DeRosa: People are very sensitive to performance, and we tend to focus on a risk-adjusted performance figure. As I mentioned previously, we overlay to the S&P, so we are very conscious of our sector bets. You will find that, within our respective ratings, we overweight and underweight certain sectors, but not too dramatically in any one area. As a side note, industrials would be the only exception, and that is simply because of the sector reclassifications done by S&P last year. As I mentioned earlier, we conduct regular rebalancing of the individual positions, preventing us from making company bets as well. We believe in a very diversified portfolio. It’s fairly concentrated in that it currently holds only 33 names, but we are well diversified across sectors, and we are well diversified across individual company holdings. It’s part of that rebalancing process that we think really helps control the risk. It is important for us to stay current with how our management style stacks up against other managers in terms of performance, turnover, risk, etc. The Russell/Mellon software allows us to do this, so we take advantage of that. As a manager with fairly low turnover and one that is well diversified, we are pleased with our risk-adjusted performance.

TWST: I would like to backtrack and talk about your technology weightings. Could you just tell us what you still have in the Fund?

Mr. DeRosa: Our weighting has been shrinking. We have remained underweight in technology now for over 12 months. We do still own what we believe are some of the dominant names in the industry including Microsoft (Nasdaq:MSFT) our largest tech holding, Cisco Systems (Nasdaq:CSCO) and Texas Instruments (NYSE:TXN). Although technology has been very disappointing to us, we do believe in it as a growth sector. Once corporate profits return, we will begin to see some growth again, although not to the levels that we saw in the late 1990s. We also maintain some exposure on the wireless front in a name such as QUALCOMM (Nasdaq:QCOM). We believe that they are benefiting, again, from their dominance of brand. The eventual upgrade to 2.5G and 3G will also help to increase their growing market share. We still believe in wireless, although expectations continue to be subdued. It has been a frustrating industry to watch. The one characteristic that all of our technology names have is that we believe they will be dominant once the economic turn begins. They are all very well capitalized with cash on the balance sheet, which gives them extra leverage to survive in these difficult times.

TWST: Is there anything that you would like to add at this time to give a better picture of your views or your work?

Mr. DeRosa: The two main points of focus for our firm have been the consistent disciplined research process in place since the firm’s inception and the team work involved in the process. We have worked hard to continually define and evolve the research product, as we believe that it will lead to superior performance. Our objective is an independent viewpoint, separate from short-term Wall Street thinking, which adds value. Our team-oriented approach creates an environment where we don’t really have one strong manager per se, but more of a strong firm overall. These are certainly important concepts that we like to get across.

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.