<PAGE> 1
UNITED STATES
SECURTIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F
INFORMATION REQUIRED OF INSTITUTIONAL INVESTMENT MANAGERS PURSUANT TO SECTION
13(f) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULES THEREUNDER
Report for the Calendar Year or Quarter Ended June 30, 1998
If amended report check here:
NewSouth Capital Management, Inc.
- ----------------------------------------
Name of Institutional Investment Manager
1000 Ridgeway Loop Road, Suite 233, Memphis, TN 38120-4023
- --------------------------------------------------------------------------------
Business Address (Street) (City) (State) (Zip)
D. Stephen Morrow (901) 761-5561 Executive Vice President
- --------------------------------------------------------------------------------
Name, Phone No., and Title of Person Duly Authorized to Submit This Report
The institutional investment manager submitting this Form and its attachments
and the person by whom it is signed represent hereby that all information
contained therein is true, correct and complete. It is understood that all
required items, statements and schedules are considered integral parts of this
Form and that the submission of any amendment represents that all unamended
items, statements and schedules remain true, correct and complete as previously
submitted.
Pursuant to the requirements of Securities Exchange Act of 1934, the
undersigned institutional investment manager has caused this report to be signed
on its behalf in the City of Memphis and State of Tennessee on the 12th day of
August, 1998.
NewSouth Capital Management, Inc.
- -----------------------------------------
(Name of Institutional Investment Manager)
D. Stephen Morrow
- -----------------
(Manual Signature of Person Duly Authorized
to submit this report)
Name and 13F file numbers of ALL Institutional Investment Managers with respect
to which this schedule is filled (other than the one filing this report): (List
in alphabetical order).
13F File Numbers will be assigned to Institutional Investment Managers after
they file their first report.
Name: 13F File No.:
- -----------------------------------------------------------------
1. NewSouth Capital Management, Inc. 28-1652
<PAGE> 2
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6
CUSIP Fair Market Shares of Voting Authority
Name of Issuer Title of Class Number Value Principal Amount Sole None
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
360 Communications Co. Common 885571109 59,973,839 1,810,531 1,678,031 132,500
- --------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 22,313,911 1,085,175 992,175 93,000
- --------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Class A Common 013068200 29,064,271 1,145,390 1,063,390 82,000
- --------------------------------------------------------------------------------------------------------------------------------
American Stores Co. Common 030096101 1,700,865 70,320 70,320
- --------------------------------------------------------------------------------------------------------------------------------
AMR Corp. Common 001765106 3,573,922 42,930 42,930
- --------------------------------------------------------------------------------------------------------------------------------
Amsouth Bancorp Common 032165102 1,103,816 28,078 28,078
- --------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 11,626,462 534,550 464,550 70,000
- --------------------------------------------------------------------------------------------------------------------------------
Astec Industries Inc Common 046224101 2,070,000 60,000 60,000
- --------------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. Common 053332102 1,897,087 59,400 59,400
- --------------------------------------------------------------------------------------------------------------------------------
Avnet Inc. Common 053807103 32,495,750 594,208 542,708 51,500
- --------------------------------------------------------------------------------------------------------------------------------
Bankunited Cap Tr Pfd B 10.25 Pfd 66514401 403,000 400 400
- --------------------------------------------------------------------------------------------------------------------------------
Beckman Coulter Inc. Common 075811109 233,000 4,000 4,000
- --------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 5,604,721 492,723 480,723 12,000
- --------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 29,351,590 732,645 669,645 63,000
- --------------------------------------------------------------------------------------------------------------------------------
BJ's Wholesale Club, Inc. Common 05548J106 4,931,875 121,400 121,400
- --------------------------------------------------------------------------------------------------------------------------------
Black & Decker Common 091797100 1,836,100 30,100 30,100
- --------------------------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp. Common 103304101 258,750 45,000 45,000
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Partners L.P. * Common 118230101 400,750 14,000 14,000
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 118255108 65,606,577 2,784,364 2,614,364 170,000
- --------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe C Common 12189T104 3,734,365 38,033 38,033
- --------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 273,447 6,350 6,350
- --------------------------------------------------------------------------------------------------------------------------------
Cable Michigan Inc. Common 12685T103 20,070,843 514,637 514,637
- --------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Cl A Common 127097103 36,170,300 1,808,515 1,691,015 117,500
- --------------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 16,746,925 1,180,400 1,180,400
- --------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 16,301,512 590,100 590,100
- --------------------------------------------------------------------------------------------------------------------------------
Cendant Corp. Common 151313103 3,807,670 185,740 185,740
- --------------------------------------------------------------------------------------------------------------------------------
Chrysler Corp. Common 171196108 8,490,075 150,600 150,600
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Coca Cola Company Common 191216100 966,150 11,300 11,300
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Colgate-Palmolive Common 194162103 1,232,000 14,000 14,000
- --------------------------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc. Common 197648108 250,312 4,500 4,500
- --------------------------------------------------------------------------------------------------------------------------------
Community Bank (Calif) 13% Non Pfd 203507207 277,500 10,000 10,000
- --------------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 1,443,511 39,821 39,821
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Portfolio Services Common 210502100 18,916,275 1,801,550 1,801,550
- --------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 2,035,216 32,273 32,273
- --------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 28,509,873 1,197,265 1,126,276 70,989
- --------------------------------------------------------------------------------------------------------------------------------
Criimi Mae Conv. Pfd Ser B 10. Cnvtpfd 226603207 336,875 10,000 (1) 10,000
- --------------------------------------------------------------------------------------------------------------------------------
CSX Corp. Common 126408103 2,514,330 55,260 55,260
- --------------------------------------------------------------------------------------------------------------------------------
CTBI Preferred Cap Trust 9% Pfd 12641H201 540,000 20,000 20,000
- --------------------------------------------------------------------------------------------------------------------------------
CVS Corp. Common 126650100 3,046,859 78,250 78,250
- --------------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Common 239753106 4,578,885 94,410 94,410
- --------------------------------------------------------------------------------------------------------------------------------
Delta Airlines Common 247361108 1,101,856 8,525 8,525
- --------------------------------------------------------------------------------------------------------------------------------
Developers Div Realty 7.000% Due 08-15-99 CnvtBl 251591AA1 619,920 574 (2) 574
- --------------------------------------------------------------------------------------------------------------------------------
Discount Auto Parts Inc Common 254642101 4,412,200 169,700 169,700
- --------------------------------------------------------------------------------------------------------------------------------
Duke Power Co 6.10% Pfd Pfd 264399726 510,000 20,000 20,000
- --------------------------------------------------------------------------------------------------------------------------------
Eagle Hardware & Garden Common 26959B101 2,798,125 121,000 121,000
- --------------------------------------------------------------------------------------------------------------------------------
East West Bank Common 27579G207 2,000,000 200,000 200,000
- --------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 227,880 17,280 17,280
- --------------------------------------------------------------------------------------------------------------------------------
EVI Weatherford, Inc. Common 26926D107 44,381,276 1,199,494 1,107,344 92,150
- --------------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 2,358,051 538,983 538,983
- --------------------------------------------------------------------------------------------------------------------------------
Excel Realty Trust, Inc. * Common 30067R107 17,238,029 598,283 598,283
- --------------------------------------------------------------------------------------------------------------------------------
Exxon Corp Common 302290101 385,710 5,404 5,404
- --------------------------------------------------------------------------------------------------------------------------------
FDX Corp. Common 31304N107 2,251,784 35,885 35,885
- --------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Asso Common 313586109 387,585 6,380 6,380
- --------------------------------------------------------------------------------------------------------------------------------
Federated Dept. Stores, Inc. Common 31410H101 2,198,348 40,852 40,852
- --------------------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners LP * Common 315293100 2,299,219 112,500 112,500
- --------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 131,130,945 3,973,665 3,748,665 225,000
- --------------------------------------------------------------------------------------------------------------------------------
First American Corp. TN Common 318900107 938,437 19,500 19,500
- --------------------------------------------------------------------------------------------------------------------------------
First Cash, Inc. Common 31942D107 2,000,000 160,000 160,000
- --------------------------------------------------------------------------------------------------------------------------------
First Tennessee Natl. Corp. Common 337162101 1,992,730 63,136 63,136
- --------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl A Common 344775200 4,718,031 444,050 444,050
- --------------------------------------------------------------------------------------------------------------------------------
Ford Motor Common 345370100 22,012,900 373,100 373,100
- --------------------------------------------------------------------------------------------------------------------------------
Forest Oil Corp Common 346091606 426,126 29,773 29,773
- --------------------------------------------------------------------------------------------------------------------------------
Fort Bend Conv Sub Deb 8.000% Due 12-01-05 CnvtBl 346824AA3 545,625 250 (3) 250
- --------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 39,209,416 833,135 749,635 83,500
- --------------------------------------------------------------------------------------------------------------------------------
Gap, Inc. Common 364760108 6,180,612 100,600 100,600
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General Electric Common 369604103 218,100 2,400 2,400
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General Motors Common 370442105 12,301,517 184,120 184,120
- --------------------------------------------------------------------------------------------------------------------------------
Grand Casinos Inc Common 385269105 340,000 20,000 20,000
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Green Tree Finl. Common 393505102 140,868,752 3,290,365 3,127,865 162,500
- --------------------------------------------------------------------------------------------------------------------------------
Grove Property Trust* Common 399613108 3,394,275 325,200 325,200
- --------------------------------------------------------------------------------------------------------------------------------
Hallwood Energy Partners, L.P. Common 40636P201 1,244,328 205,250 205,250
- --------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 14,117,469 169,962 169,962
- --------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 12,055,750 290,500 270,500 20,000
- --------------------------------------------------------------------------------------------------------------------------------
J. C. Penney Common 708160106 3,814,484 52,750 52,750
- --------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 7,787,075 464,900 464,900
- --------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp. Common 486587108 60,540,350 1,714,417 1,599,417 115,000
- --------------------------------------------------------------------------------------------------------------------------------
Kroger Co. Common 501044101 5,087,976 118,670 118,670
- --------------------------------------------------------------------------------------------------------------------------------
Lechters Inc 5.000% Due 09-27-01 CnvtBl U52323AA7 1,628,000 370 (4) 370
- --------------------------------------------------------------------------------------------------------------------------------
Limited, Inc. Common 532716107 2,256,144 68,110 68,110
- --------------------------------------------------------------------------------------------------------------------------------
Local Financial Corporation Common 539553107 1,755,000 135,000 135,000
- --------------------------------------------------------------------------------------------------------------------------------
Lowe's Co. Common 548661107 2,555,437 63,000 63,000
- --------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 23,452,562 1,280,686 1,183,186 97,500
- --------------------------------------------------------------------------------------------------------------------------------
May Dept. Stores Common 577778103 3,712,212 56,675 56,675
- --------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 17,401,097 505,295 446,295 59,000
- --------------------------------------------------------------------------------------------------------------------------------
Medical Assurance, Inc. Common 58449U100 688,808 24,822 24,822
- --------------------------------------------------------------------------------------------------------------------------------
Merck & Co. Common 589331107 307,625 2,300 2,300
- --------------------------------------------------------------------------------------------------------------------------------
Municipal Mortgage & Equity * Common 62624B101 5,849,850 264,400 264,400
- --------------------------------------------------------------------------------------------------------------------------------
National Commerce Bancorporati Common 635449101 976,190 23,312 23,312
- --------------------------------------------------------------------------------------------------------------------------------
Nationsbank Corp. Common 638585109 504,910 6,584 6,584
- --------------------------------------------------------------------------------------------------------------------------------
Newell Co. Common 651192106 1,876,437 37,670 37,670
- --------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Common 655844108 2,980,207 99,965 99,965
- --------------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 13,808,174 692,573 692,573
- --------------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Corp.* Common 67574M106 7,577,344 457,500 457,500
- --------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 22,660,328 843,175 783,175 60,000
- --------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l. Common 680223104 40,967,183 1,394,628 1,283,628 111,000
- --------------------------------------------------------------------------------------------------------------------------------
Payless ShoeSource, Inc. Common 704379106 1,776,974 24,115 24,115
- --------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 3,841,791 148,475 148,475
- --------------------------------------------------------------------------------------------------------------------------------
Pfizer Co. Common 717081103 333,127 3,065 3,065
- --------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 2,143,181 54,430 54,430
- --------------------------------------------------------------------------------------------------------------------------------
Plum Creek Timber, L.P. * Common 729237107 2,036,734 67,750 67,750
- --------------------------------------------------------------------------------------------------------------------------------
Premark Int'l Inc. Common 740459102 235,425 7,300 7,300
- --------------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc. 10.50% Sr. Pfd 741570204 5,371,300 205,600 205,600
- --------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Common 742718109 346,037 3,800 3,800
- --------------------------------------------------------------------------------------------------------------------------------
Proffitt's Inc. Common 742925100 58,557,962 1,450,352 1,352,852 97,500
- --------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 896,800 30,400 30,400
- --------------------------------------------------------------------------------------------------------------------------------
RCN Corporation Common 749361101 1,315,562 67,900 67,900
- --------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 30,255,840 630,330 566,830 63,500
- --------------------------------------------------------------------------------------------------------------------------------
Rite Aid Common 767754104 2,545,611 67,770 67,770
- --------------------------------------------------------------------------------------------------------------------------------
Royce Value Trust Common 780910105 168,844 10,233 10,233
- --------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl A Common 810022103 20,451,424 1,398,388 1,280,888 117,500
- --------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl B Common 810022202 462,000 30,800 30,800
- --------------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. Common 812387108 5,543,864 90,790 90,790
- --------------------------------------------------------------------------------------------------------------------------------
Shoney's, Inc. Common 825039100 4,758,950 1,359,700 1,359,700
- --------------------------------------------------------------------------------------------------------------------------------
Southdown Inc. Common 841297104 60,624,854 849,385 798,385 51,000
- --------------------------------------------------------------------------------------------------------------------------------
Southern California Edison 6.4 Pfd 842400780 523,750 5,000 5,000
- --------------------------------------------------------------------------------------------------------------------------------
Southwest Airlines Common 844741108 1,761,748 59,594 59,594
- --------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs, Inc. Common 860342104 17,238,510 957,695 875,695 82,000
- --------------------------------------------------------------------------------------------------------------------------------
Storage Trust Realty * Common 861909109 514,250 22,000 22,000
- --------------------------------------------------------------------------------------------------------------------------------
Storage USA, Inc. * Common 861907103 2,465,400 70,440 70,440
- --------------------------------------------------------------------------------------------------------------------------------
Sun Communities Inc. Common 866674104 1,079,875 32,600 32,600
- --------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 25,956,000 659,200 591,200 68,000
- --------------------------------------------------------------------------------------------------------------------------------
Teppco Partners LP UT Ltd Part Common 872384102 459,000 8,500 8,500
- --------------------------------------------------------------------------------------------------------------------------------
Toys R Us Common 892335100 4,033,500 172,096 152,096 20,000
- --------------------------------------------------------------------------------------------------------------------------------
Travel Ports of America Common 894167105 43,414 14,176 14,176
- --------------------------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. Common 894190107 662,328 10,925 10,925
- --------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Common 895290104 43,068,590 1,108,765 1,033,765 75,000
- --------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 450,000 16,000 16,000
- --------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. Common 907818108 2,433,068 55,297 55,297
- --------------------------------------------------------------------------------------------------------------------------------
United Companies Finl 6.75% Pf Pfd 909870206 3,660,800 114,400 114,400
- --------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp Common 909870107 29,553,906 1,891,450 1,755,450 136,000
- --------------------------------------------------------------------------------------------------------------------------------
UNUM Corp. Common 903192102 4,164,165 75,030 75,030
- --------------------------------------------------------------------------------------------------------------------------------
US Airways Group Common 911905107 3,066,579 38,695 38,695
- --------------------------------------------------------------------------------------------------------------------------------
Venator Group Inc Common 922944103 1,192,922 62,375 62,375
- --------------------------------------------------------------------------------------------------------------------------------
Wabash National Corp Common 929566107 643,750 25,000 25,000
- --------------------------------------------------------------------------------------------------------------------------------
Walgreen Co. Common 931422109 4,001,116 96,850 96,850
- --------------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores Common 931142103 29,976,419 493,439 493,439
- --------------------------------------------------------------------------------------------------------------------------------
Winn-Dixie Stores Common 974280109 777,750 15,250 15,250
- --------------------------------------------------------------------------------------------------------------------------------
Winston Hotels Inc Cum Pfd 9.2 Pfd 97563A201 485,000 20,000 20,000
- --------------------------------------------------------------------------------------------------------------------------------
=============
1,529,619,718
=============
ITEM 6 - Sole investment discretion
(1) Converts to 22,844.00 shares ITEM 7 - not applicable
(2) Converts to 34,397.01 shares
(3) Converts to 23,148.00 shares
(4) Converts to 60,661.72 shares
</TABLE>
<PAGE> 4
THE FOLLOWING SECURITIES ARE ADDITIONS TO THOSE ALREADY LISTED, BUT ARE BEING
REPORTED SEPARATELY BECAUSE NEWSOUTH MANAGES THEM THROUGH A SMITH BARNEY
FIDUCIARY SERVICES PROGRAM WHEREBY ACCOUNTS ARE PLACED WITH US FOR MANAGEMENT.
ALTHOUGH DISCRETIONARY RESPONSIBILITY FOR THE ACCOUNTS IS WITH US, SB RETAINS
THE RESPONSIBILITY FOR REPORTING THESE SECURITIES ON THEIR 13F IF THE SIZE OF A
PARTICULAR HOLDING TRIGGERS 13F FILING REQUIREMENTS.
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5
Name of Issuer Title of Class CUSIP Fair Market Shares of
Number Value Principal Amount
<S> <C> <C> <C> <C>
360 Degrees Communications, Inc. Common 885571109 3,924,561 118,476
- -----------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Inc. Common 042735100 230,560 10,600
- -----------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 2,163,648 85,265
- -----------------------------------------------------------------------------------------------------------------------------------
AGCO Corporation Common 001084102 1,988,539 96,705
- -----------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 2,430,399 44,441
- -----------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 2,588,884 64,620
- -----------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 3,646,726 154,764
- -----------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 2,344,828 98,468
- -----------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 2,939,000 146,950
- -----------------------------------------------------------------------------------------------------------------------------------
Cedar Fair L.P. Prtnrshp 150185106 232,606 8,420
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mtg. Common 313400301 2,739,071 58,200
- -----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc. CL A Common 810022103 1,690,749 115,605
- -----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc. CL B Common 810022202 42,150 2,810
- -----------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 6,319,995 191,515
- -----------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 6,139,996 143,414
- -----------------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 1,556,463 101,520
- -----------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 1,586,897 86,653
- -----------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 2,820,163 81,890
- -----------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 131,685 4,900
- -----------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 3,641,797 123,976
- -----------------------------------------------------------------------------------------------------------------------------------
Proffitt's Inc. Common 742925100 3,020,111 74,801
- -----------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 2,797,920 58,290
- -----------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 3,316,771 46,469
- -----------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs Inc. Common 860342104 1,795,680 99,760
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 2,415,887 61,355
- -----------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 3,084,931 79,418
- -----------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 666,303 23,690
- -----------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp. Common 909870107 1,857,529 118,880
- -----------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp.-Pfd Preferred 909870206 23,040 720
- -----------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra Inc. Common 947071106 2,439,225 65,925
- -----------------------------------------------------------------------------------------------------------------------------------
70,576,114
===========
Sole discretion and voting authority are applicable
</TABLE>
<PAGE> 5
THE FOLLOWING SECURITIES ARE ADDITIONS TO THOSE ALREADY LISTED, BUT ARE BEING
REPORTED SEPARATELY BECAUSE NEWSOUTH MANAGES THEM THROUGH A MORGAN, KEEGAN
PROGRAM WHEREBY ACCOUNTS ARE PLACED WITH US FOR MANAGEMENT. ALTHOUGH
DISCRETIONARY RESPONSIBILITY FOR THE ACCOUNTS IS WITH US, MORGAN, KEEGAN RETAINS
THE RESPONSIBILITY OF REPORTING THESE SECURITIES ON THEIR 13F IF THE SIZE OF A
PARTICULAR HOLDING TRIGGERS 13F FILING REQUIREMENTS.
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5
Name of Issuer Title of Class CUSIP Fair Market Shares of
Number Value Principal Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
360 Communications Co. Common 885571109 1,439,116 43,445
- -----------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 592,126 23,335
- -----------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 745,699 36,265
- -----------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 176,175 8,100
- -----------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 919,023 16,805
- -----------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 9,214 810
- -----------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 711,109 17,750
- -----------------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp Common 11815H104 1,387,478 58,885
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 911,547 64,250
- -----------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 830,771 34,888
- -----------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 1,038,300 51,915
- -----------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 276,250 10,000
- -----------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 11,078 840
- -----------------------------------------------------------------------------------------------------------------------------------
Excel Realty Trust Common 30067R107 48,693 1,690
- -----------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 669,699 14,230
- -----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl A Common 810022103 714,504 48,855
- -----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl B Common 810022202 3,000 200
- -----------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 2,056,890 62,330
- -----------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 1,952,464 45,605
- -----------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 865,690 20,860
- -----------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 11,725 700
- -----------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 1,220,400 34,560
- -----------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 199,738 5,800
- -----------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 648,336 35,404
- -----------------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 199,375 10,000
- -----------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 1,123,329 38,241
- -----------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 153,188 5,700
- -----------------------------------------------------------------------------------------------------------------------------------
Proffitt's Inc. Common 742925100 874,644 21,663
- -----------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 918,000 19,125
- -----------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 1,112,736 15,590
- -----------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 582,390 32,355
- -----------------------------------------------------------------------------------------------------------------------------------
Storage USA Inc. Common 861907103 23,450 670
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 887,513 22,540
- -----------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 1,050,141 27,035
- -----------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 246,938 8,780
- -----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 463,672 29,675
- -----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp.-6.75% Preferred 909870206 283,840 8,870
- -----------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 1,076,626 29,098
- -----------------------------------------------------------------------------------------------------------------------------------
26,434,864
==========
</TABLE>
<PAGE> 6
Sole discretion and voting authority are applicable
THE FOLLOWING SECURITIES ARE ADDITIONS TO THOSE ALREADY LISTED, BUT ARE BEING
REPORTED SEPARATELY BECAUSE NEWSOUTH MANAGES THEM THROUGH A LOCKWOOD FINANCIAL
SERVICES PROGRAM WHEREBY ACCOUNTS ARE PLACED WITH US FOR MANAGEMENT. ALTHOUGH
DISCRETIONARY RESPONSIBILITY FOR THE ACCOUNTS IS WITH US, LOCKWOOD FINANACIAL
RETAINS THE RESPONSIBILITY OF REPORTING THESE SECURITIES ON THEIR 13F IF THE
SIZE OF A PARTICULAR HOLDING TRIGGERS 13F FILING REQUIREMENTS.
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5
Name of Issuer Title of Class CUSIP Fair Market Shares of
Number Value Principal Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
360 Communications Co. Common 885571109 22,359 675
- -----------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 14,718 580
- -----------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 13,777 670
- -----------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 14,766 270
- -----------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 15,023 375
- -----------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp Common 11815H104 25,919 1,100
- -----------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 17,859 750
- -----------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 19,000 950
- -----------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 22,590 480
- -----------------------------------------------------------------------------------------------------------------------------------
scott Common 316828508 11,773 805
- -----------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 41,580 1,260
- -----------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 31,039 725
- -----------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 21,011 595
- -----------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 12,636 690
- -----------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 19,802 575
- -----------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 22,443 764
- -----------------------------------------------------------------------------------------------------------------------------------
Proffitt's Inc. Common 742925100 17,402 431
- -----------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 15,600 325
- -----------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 22,840 320
- -----------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 12,060 670
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 14,766 375
- -----------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 21,170 545
- -----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 13,281 850
- -----------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 18,870 510
- -----------------------------------------------------------------------------------------------------------------------------------
439,925
=========
</TABLE>
