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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/info576.htm

TWST: As you look back on the real estate equities market in 2001, what kind of investor interest was there, and how did it reward or disappoint investors?

Mr. Spears: I think 2001 can be best characterized as the year of the junk REIT rally. There tended to be a lot of investor interest in those REITs and real estate securities that offered the highest yield despite, in most instances, the risk associated with that dividend. It was as if the investor ignored the shaky fundamentals underlying the dividend. These marginal players realized share price appreciation based almost exclusively on their yield. The Davis Real Estate Fund focuses on exceptionally managed companies with thoughtfully designed business plans. Those companies, which tend to have lower yields, did not perform as well. From that standpoint, 2001 was a disappointment.

TWST: What are the most important economic indicators that you monitor in order to determine the current and future strength of the various areas of real estate?

Mr. Spears: One of the models that we use, which is proprietary, looks at sub-market level supply and demand data. We attempt to measure a company’s exposure to changes in supply, such as an increase in the number of office developments, and changes in demand, such as expected employment growth. Then we rank the company’s exposure to such indicators against its peers.

TWST: What are some of your recent buys and the reasons why?

Mr. Spears: Generally speaking, we have been looking at the retail REITs, especially the mall-based REITs, based largely on our beliefs that the consumer will prove more resilient than expected and that the supply/demand outlook appears balanced. Over the past 12 months we have added to our favored positions in General Growth Properties (GGP) and Taubman Centers (TCO). We have also been taking larger positions in a few of the industrial REITs, such as First Industrial (FR) and Highwoods Properties (HIW). Aside from company-specific merits, we like the prospects for industrial space given a likely recovery in the economy and related rebuilding of inventory levels.

TWST: Is a REIT a complex investment? Why do investors avoid them and have misperceptions about investing in REITs?

Mr. Spears: REITs do have to conform to certain rules to retain their REIT status, so from a compliance perspective they are complicated animals. But management teams have mastered those rules by and large, so the rules do little to distract management from the business of real estate.

This special Investing Strategies Report includes:

1) Investing in Technology - Steven Bloom, Vice President and Senior Research Analyst/Portfolio Manager for HSBC Asset Management, examines portfolio management strategies in this timely and deeply informative 6,400-word interview from The Wall Street Transcript.

2) Investing in Real Estate - Andrew A. Davis, Portfolio Manager for the Davis Real Estate Fund and co-Portfolio Manager of the Davis Convertible Securities Fund & Chandler Spears, Securities Analyst for the Davis Real Estate Fund, examine portfolio management strategies in this timely and deeply informative 3,200-word interview from The Wall Street Transcript.

3) Amy S. Croen, co-Founder and a member of Geneva Capital Management, examines portfolio management strategies in this timely and deeply informative 4,500-word interview from The Wall Street Transcript.

4)Ian Anthony Rosenthal, Director and Portfolio Manager/Analyst in TimesSquare Capital Management, Inc., examines portfolio management strategies in this timely and deeply informative 3,700-word interview from The Wall Street Transcript.