Philip Frank, Ph.D.

Why We're Adding to Our Centex Short

David,

Currently, Insight is long Vornado and Brascan in our model portfolio. Our thinking is that the commercial sector will hold up better than the residential sector. However, you are right in the sense that if the economy gets bad enough the commerical sector will be negatively affected as well. Though we are cautious on the economy, we still see sufficient strength currently to be long Vornado and Brascan.

Philip Frank, PhD
President and Portfolio Manager,
Insight Asset Management LLC
e-mail: insight-asset@earthlin...