Barron's: What about a pick from another sector? Milano: Electronic Arts, which I view as a consumer name but which other people view as a technology name, is an interesting story, and I continue to like the stock. Electronic Arts is pretty much hated by everyone. It's a $21 stock. They've got about $8 a share in cash, and it is a turnaround. They lost money last year. They've got new management. They've cut a ton of operating expenses this year, and they have a pretty good slate of games coming this year and next year. So I'm looking at a company that can earn north of $1 a share this year and can ramp it to north of $1.25 a share next year. If you pull the cash out of the stock price, you are paying 12, 13 times for this company on $1 of earnings. You are paying about 10 times next year's earnings, excluding the cash. It's a great consumer-franchise company. It owns consumer properties like Madden football, the FIFA soccer games and the Sims games. So it's a name that maybe isn't as popular as an Apple, but it's attractive. I'm always on the hunt for names that other growth managers shun.

Barron's: What about another health-care name in the portfolio? Milano: One is Medco Health Solutions [MHS], a pharmacy-benefits manager, otherwise known as a PBM. What matters to Medco, quite simply, is just the continued shift from branded drugs to generic drugs. So in this health-care debate, you want to own the solutions, not the problems. Medco is going to be viewed as a solution provider, not a problem provider. They are encouraging companies and their employees to use generic drugs where possible, and it is a much better solution. It is much cheaper for everybody involved, including the whole system, and they are the industry leader by far. In the next couple of years, we will see a huge wave of major drug brands coming off patent, opening up opportunities for generic drugs. These PBMs have been growing their earnings by double digits, even before this big wave of patent expirations hits. The prospects of growing earnings 15%, 20% or higher over each of the next three years look pretty good to me.

Barron's What about Monsanto's near-term issues and valuation? Milano: They sell a product called Roundup, which is an herbicide. The short version is that Roundup is competing against a generic product. So it is the opposite of Medco's situation. Monsanto has the brand, and the generic version is eating into its profitability. That's why this year and next year, earnings are going to be flat. But after that they can grow once again as Roundup's impact on earnings lessens and Monsanto's seed business grows. Their fiscal year ends in August. So for the year ending later this month, they are going to earn something like $4.40 a share, with the stock in the low-80s. It trades at nearly 19 times, with tremendous upside-growth potential.

Barron's What changes have you made to the portfolio in the past year? Milano: The market really started to swing after the Lehman filing in September. Basically, what I did in October/November was to upgrade the quality of the portfolio. I do have a valuation framework. So there were names like Apple [AAPL] and Research in Motion [RIMM] that, prior to the fall, had gotten away from us in terms of valuation, but I had another chance to reload in the fall. The biggest changes in the last 12 months occurred within a very short period of time. During a six- to eight-week period last fall, we were buying beautiful growth names that were down 50%, 60%, 70%. Going forward, I expect it to be a much more selective market as far as what works.

Barron's What changes have you made to the portfolio in the past year? Milano: The market really started to swing after the Lehman filing in September. Basically, what I did in October/November was to upgrade the quality of the portfolio. I do have a valuation framework. So there were names like Apple [AAPL] and Research in Motion [RIMM] that, prior to the fall, had gotten away from us in terms of valuation, but I had another chance to reload in the fall. The biggest changes in the last 12 months occurred within a very short period of time. During a six- to eight-week period last fall, we were buying beautiful growth names that were down 50%, 60%, 70%. Going forward, I expect it to be a much more selective market as far as what works.

Barron's What are some of the growth companies that you bought when the market tanked last fall? Milano: Priceline.com [PCLN] had gone from 150 into the 40s last fall, and now it is back to around 150. We bought a lot of Priceline.com in the fall. I would put Research in Motion and Apple in that category, as well. I was just a kid in a candy store in the fall, though I didn't think these stocks were going to work within a quarter or two. I was buying all these companies with the notion that they were going to work in 2010, not 2009. So the timing is somewhat surprising, but that's why it is important to highlight the time horizon. It is really important -- because had I focused on the next couple of quarters, there is no way I would have bought any of these companies in the fall.

Barron's How are you positioning the portfolio in terms of consumer names? Milano: It probably isn't all that different from what it was three, six, nine months ago. It might be up modestly, because the group has actually performed reasonably well. But in a world where growth is going to be subdued, the next logical question is, "How do you invest in that environment?" Well, you have to find companies that sell a compelling product, and you have to find companies that are taking market share. That applies to any sector. But in the consumer sector, that means you need to have companies like Apple. Everybody owns Apple because it has a compelling product, the iPhone, and people are investing in Research in Motion because it has a compelling product, the BlackBerry. Then, on the other side, there's market share. Who is taking market share? Right now, it is anybody that speaks to the value-oriented consumers. So Wal-Mart Stores [WMT] is gaining share, as is Carnival [CCL]. Again, it's value, in this case by offering a cheaper way to take a vacation.

Barron's How are you positioning the portfolio in terms of consumer names? Milano: It probably isn't all that different from what it was three, six, nine months ago. It might be up modestly, because the group has actually performed reasonably well. But in a world where growth is going to be subdued, the next logical question is, "How do you invest in that environment?" Well, you have to find companies that sell a compelling product, and you have to find companies that are taking market share. That applies to any sector. But in the consumer sector, that means you need to have companies like Apple. Everybody owns Apple because it has a compelling product, the iPhone, and people are investing in Research in Motion because it has a compelling product, the BlackBerry. Then, on the other side, there's market share. Who is taking market share? Right now, it is anybody that speaks to the value-oriented consumers. So Wal-Mart Stores [WMT] is gaining share, as is Carnival [CCL]. Again, it's value, in this case by offering a cheaper way to take a vacation.