10 Questions With Calamos Growth Fund Manager John Calamos

The problem is, every time there's a bill in Congress, it kills the industry. It's a very politically sensitive industry. But we do look at companies that provide services in an efficient fashion. Whenever we're in there, we're nervous because it's such a political football. [This interview was conducted before the news of a fraud probe into two doctors at a Tenet medical center hammered its stock. Calamos couldn't be reached for further comment on the matter.]

Qwest Diagnostic (DGX Quote) is one that we've kind of rode up and down, and looks like it's coming back a bit here. It really was going counter to the market for quite a few months, but it seems to come back, and we continue to hold it in the fund.

7. Apollo Group (APOL Quote) is your largest holding. What do you like about the company?

Apollo Group contains several themes that we like -- the educational theme, the effective use of technology to improve their business. They do the college of financial planners, things like that. They're using the Web quite effectively.

This has been one of our core holdings.

The stock has had a big run-up in recent years, do you think it's getting frothy? The whole sector's had a nice run.

A Fund for All Seasons For most of the past seven years, the Calamos Growth fund has handily topped both its peers and the S&P 500 -- year in, year out.
	1995	1996	1997	1998	1999	2000	2001	Through 10-31-02
Total percentage return	27.5	37.9	25.2	27.3	77.7	26.6	-7.7	-12.9
Compared to Mid-Cap Growth Peers	-6.6	+20.7	+6.9	+10.8	+15.0	+31.7	+13.3	+13.5
Compared to S&P 500 Index	-10.0	+15.0	-8.2	-1.3	+56.7	+35.7	+4.2	+9.1
Rank in Category by Percentage	78	2	23	18	31	5	15	3
Source: Morningstar

We think Apollo will be able to maintain their growth. We also own Corinthian Colleges (COCO Quote), Career Education (CECO Quote) -- that's a theme that we like.

But let me stress, this is a very active portfolio. If any of these stocks we're talking about get overpriced, we don't have any problem pulling the trigger and buying them back later.

8. What's your most recent addition to the portfolio and what do you like about it?

One I can talk about that plays into several themes we like right now is Weight Watchers (WTW Quote) -- it's the No. 3 holding in the fund. It's been a recent purchase -- I think we started buying last August -- and we continue to add to it.

It's had good earnings growth, and we expect to see continuing improvement. As long as they don't disappoint us there, we'll keep with them.

H&R Block (HRB Quote) is a stock we've owned for a while. It's a good example of a mid-cap company that has a terrific franchise. It's growing well. It's a retail-oriented stock, which plays to several themes: low inflation, low interest-rate environment, the consumer is still spending money. The company is also trying to expand into the financial-advice area -- we think that will be a good move for them.