I’ve cut my marketing operations budget to the bone. Now I

have to cut into my brand-building. Where should I start?

Start with your media budget, since you probably have

already reduced or postponed new production. Across-the-board cuts don’t make

sense unless you are cutting your budget less than 5 percent. Most media

schedules can take a 5 percent cut without irreparable harm. If you are cutting

more than that, it is better to eliminate one medium than to weaken them all.

The amount of your cut and your remaining investment is the same.

Think of your media budget as a body of water. Concentrated,

it is noticeable and makes a difference. Spread too thin, it is a puddle (or

just a wet spot). No one will see it or be affected by it.

Incidentally, if you do have new advertising in production,

it probably is because you have decided you need to change your current ads.

Stay the course with your changes. Even with a reduced media budget, new

advertising can get attention and make the media more productive, particularly

if you are improving your message or your presentation of it.

—William Earnest Waites is the former chairman and

co-creative director of Spiro & Waites Advertising, Marketing & Public

Relations, which can be reached at 481-5511.

What investment strategies are most likely to perform well

in the months ahead?

As conventional markets continue to experience turmoil

brought on by continued terrorist threats and worldwide market slumps, hedge

funds are becoming core components of a well-diversified portfolio. The

prospect of lower returns for equity markets over the next three to five years

has limited investor options, thus fueling the growth of individual hedge funds

and broader-based “fund of hedge fund” products. As private-pooled investment

vehicles, hedge funds traditionally have been open to a limited number of

accredited investors who benefit from the talent of best of breed managers.

As the popularity of hedge funds increases, we hear about

“pedestrianization” of the industry—a term used to refer to heightened interest

in “fund of hedge fund” products that deliver the same diversification and

return enhancement solutions to a wider range of investors. High net worth

investors who otherwise could not afford to participate in the hedge fund

universe now have access to diversification across a pool of top-tier managers

and the concomitant benefits of expert fund selection and monitoring.

The challenge is to identify and monitor good managers,

verify strategies and performance, understand the complex vehicles, and gather

the information needed to succeed in a fragmented industry.

Experience shows that hedge fund strategies such as global

yield curve funds are strong performers in times of market turmoil. Technology,

health care and other high growth,

long-biased directional hedge funds do not typically fare as well.

If markets rebound from recent slumps, liquidity will

increase and volatility should pick up. Assuming this scenario, long-biased

directional growth hedge funds are likely to flourish. The increase in implied

stock volatility also will benefit convertible bond arbitrage, equity market

neutral funds and distressed securities hedge funds.

—James R. Hedges, founder, president and chief executive

officer of Naples-based LJH Global Investments, often appears on CNNfn and

CNBC. LJH Global can be reached at 593-5000.

When I interview job applicants, I know some questions are

not appropriate. Can you give me some quick guidelines?

An easy guide is the BFOQ rule. Bona Fide Occupational

Qualifications are those requirements applicants need to successfully perform

the job. Examples of BFOQs include technical knowledge and experience related

to the work, dependability, attention to detail and customer service

orientation.

If you have a job description, you can find them there. If

not, make a list of the BFOQs needed for the job and ask questions that tell

you if the applicant has them. Use open-ended questions that ask for

work-related examples of times when they displayed the behaviors you are

looking for.

It is unlawful to make employment-related decisions based on

age, sex, religion, race or marital status. They are not BFOQs.

—Libby Anderson is a Naples-based human resource consultant

and trainer. She can be reached via e-mail at edahrsvcs@aol.com.