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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/info514.htm

TWST: Could you briefly describe 1st Source Investment Advisors for us and your responsibilities there?

Mr. Bythrow: The Advisor is 100% owned by 1st Source Bank. We were created last May 2001 to give us more recognition with the public. We’ve had some pretty good results and want to get the word out.

TWST: What is the investment philosophy behind 1st Source Investment Advisors?

Mr. Bythrow: We manage four mutual funds; a growth fund, a small cap fund, a value fund, and a bond fund. We also manage accounts with individual stocks and bonds. For separately managed accounts, we add value by overweighting the styles that have the best outlook in terms of price appreciation potential.

TWST: What is your approach?

Mr. Bythrow: My small cap fund is small cap growth, but sometimes I’ll get put in the GARP category (growth at a reasonable price), because I do have a criterion for valuation. So it’s somewhere between a small blend and a small growth fund.

TWST: What is your definition of small cap?

Mr. Bythrow: If the shares trade, I’ll buy as small a company as I can. The smallest company I buy is 30 million market cap.

TWST: What do you do to search the market for market inefficiencies or anomalies that will help you make money?

Mr. Bythrow: I look for undervalued growth companies in sectors which should perform well considering the macroeconomic environment. To prevent me from becoming a sector fund, I won’t over- or underweight a particular sector more than 2 times the index sector weight.

TWST: What’s different about investing in small companies? What would a first-time investor need to know before he or she gets their feet wet in this area?

Mr. Bythrow: If you were to own just a couple of small caps, the risk/reward can be pretty tremendous in either direction. A lot of my holdings are a one-product or one-service company, and if that product or service does well, you’ll be rewarded handsomely, but if it doesn’t do well, you will be penalized. So, owning just a few individual small cap names on its own could be risky, but if you own a well-diversified portfolio full of them, historically, the returns show that it has been one of the best places to be in long term.

TWST: Can a small company, the ones that you research, be relied upon to deliver a predictable earnings track?

Mr. Bythrow: I would say that it’s no different from many of the medium to large companies. Senior management will make their forecasts, and then it’s up to me to determine, based on my own research of the company and their customers, suppliers and industry forces, how reliable I think their forecasts are, and whether there’s upside or downside to those forecasts.

TWST: Are there any other companies in your portfolio that you would like to discuss?

Mr. Bythrow: Salem Communications (Nasdaq:SALM) owns and operates radio stations. What differentiates Salem from some of the others is its niche in the Christian music and family values segment. The attraction to Christianity and family values is growing fast, reversing the negative trend over the last 30 years. Salem trades at a discount to other comparable radio broadcasters.

This special Investing Strategies Report includes:

1) Joseph E. Stocke, Managing Director and the Chief Investment Officer at StoneRidge Investment Partners, examineS portfolio management strategies in this timely and deeply informative 3,300-word interview from The Wall Street Transcript.

2) Frank A. Latuda, Jr., Vice President and Portfolio Manager at Kennedy Capital Management, examines portfolio management strategies in this timely and deeply informative 3,800-word interview from The Wall Street Transcript.

3) Nicholas D. Gerber, Portfolio Manager at Ameristock Funds, examines portfolio management strategies in this timely and deeply informative 3,900-word interview from The Wall Street Transcript.

4) Brian A. Bythrow, Portfolio Manager in the Personal Asset Management Group at 1st Source Investment Advisors, Inc., examines portfolio management strategies in this timely and deeply informative 3,000-word interview from The Wall Street Transcript.