<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 September 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 10th day of
November, 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 8
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>
AGCO Corp. Common 001084102 5,546,807 853,355 768,255 85,100
- ----------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Class A Common 013068200 22,385,824 1,047,290 965,290 82,000
- ----------------------------------------------------------------------------------------------------------------------------------
Alltel Corp. Common 020039103 44,987,787 954,648 886,698 67,950
- ----------------------------------------------------------------------------------------------------------------------------------
American Stores Co. Common 030096101 2,514,487 78,120 78,120
- ----------------------------------------------------------------------------------------------------------------------------------
AMR Corp. Common 001765106 2,657,119 47,930 47,930
- ----------------------------------------------------------------------------------------------------------------------------------
Amsouth Bancorp Common 032165102 958,162 28,078 28,078
- ----------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 7,294,547 555,775 485,775 70,000
- ----------------------------------------------------------------------------------------------------------------------------------
Astec Industries Inc Common 046224101 2,344,375 55,000 55,000
- ----------------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. Common 053332102 4,590,716 186,425 186,425
- ----------------------------------------------------------------------------------------------------------------------------------
Avnet Inc. Common 053807103 17,812,464 483,870 432,370 51,500
- ----------------------------------------------------------------------------------------------------------------------------------
Bankunited Cap Tr Pfd B 10.25 Pfd 06651Y401 401,600 400 400
- ----------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 4,781,908 400,579 400,579
- ----------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 18,703,094 626,045 578,045 48,000
- ----------------------------------------------------------------------------------------------------------------------------------
BJ's Wholesale Club, Inc. Common 05548J106 4,998,000 136,000 136,000
- ----------------------------------------------------------------------------------------------------------------------------------
Black & Decker Common 091797100 1,302,862 31,300 31,300
- ----------------------------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp. Common 103304101 163,125 45,000 45,000
- ----------------------------------------------------------------------------------------------------------------------------------
Buckeye Partners L.P. * Common 118230101 393,750 14,000 14,000
- ----------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 118255108 51,859,424 2,871,110 2,696,110 175,000
- ----------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe C Common 12189T104 4,057,018 125,799 125,799
- ----------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 233,594 6,250 6,250
- ----------------------------------------------------------------------------------------------------------------------------------
Cable Michigan Inc. Common 12685T103 14,954,211 430,337 430,337
- ----------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Cl A Common 127097103 26,008,494 1,705,475 1,587,975 117,500
- ----------------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 17,415,777 1,490,120 1,490,120
- ----------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 13,991,950 571,100 571,100
- ----------------------------------------------------------------------------------------------------------------------------------
Cendant Corp. Common 151313103 2,373,825 204,200 204,200
- ----------------------------------------------------------------------------------------------------------------------------------
Chrysler Corp. Common 171196108 8,984,941 187,675 187,675
- ----------------------------------------------------------------------------------------------------------------------------------
Coca Cola Company Common 191216100 461,000 8,000 8,000
- ----------------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Common 194162103 962,500 14,000 14,000
- ----------------------------------------------------------------------------------------------------------------------------------
Columbia Energy Group Common 197648108 263,812 4,500 4,500
- ----------------------------------------------------------------------------------------------------------------------------------
Community Bank (Calif) 13% Non Pfd 203507207 268,750 10,000 10,000
- ----------------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 54,095,686 1,770,002 1,672,002 98,000
- ----------------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 657,850 33,521 33,521
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Portfolio Services Common 210502100 8,750,569 2,413,950 2,413,950
- ----------------------------------------------------------------------------------------------------------------------------------
Corporate Express, Inc. CnvtBl 219888AE4 637,000 700 (1) 700
- ----------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 1,609,471 33,973 33,973
- ----------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 28,536,781 1,204,719 1,133,730 70,989
- ----------------------------------------------------------------------------------------------------------------------------------
Credit Depot Warehouse Lending CnvtBl credware9 578,261 578,261 578,261
- ----------------------------------------------------------------------------------------------------------------------------------
CSX Corp. Common 126408103 2,281,260 54,235 54,235
- ----------------------------------------------------------------------------------------------------------------------------------
CTBI Preferred Cap Trust 9% Pfd 12641H201 515,000 20,000 20,000
- ----------------------------------------------------------------------------------------------------------------------------------
CVS Corp. Common 126650100 3,822,641 87,250 87,250
- ----------------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Common 239753106 3,743,382 104,710 104,710
- ----------------------------------------------------------------------------------------------------------------------------------
Delta Airlines Common 247361108 921,444 9,475 9,475
- ----------------------------------------------------------------------------------------------------------------------------------
Developers Div Realty CnvtBl 251591AA1 579,740 574 (2) 574
- ----------------------------------------------------------------------------------------------------------------------------------
Discount Auto Parts Inc Common 254642101 5,043,500 209,600 209,600
- ----------------------------------------------------------------------------------------------------------------------------------
Eagle Hardware & Garden Common 26959B101 2,962,512 136,600 136,600
- ----------------------------------------------------------------------------------------------------------------------------------
Eagle USA Airfreight Inc Common 270018104 352,450 25,175 25,175
- ----------------------------------------------------------------------------------------------------------------------------------
East West Bank Common 27579G207 1,200,000 200,000 200,000
- ----------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund AT&T Common 294700703 203,794 1,384 1,384
- ----------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 257,612 22,280 22,280
- ----------------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 1,460,632 502,583 502,583
- ----------------------------------------------------------------------------------------------------------------------------------
Exxon Corp Common 302290101 343,237 4,860 4,860
- ----------------------------------------------------------------------------------------------------------------------------------
FDX Corp. Common 31304N107 1,782,865 39,785 39,785
- ----------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Asso Common 313586109 345,665 5,380 5,380
- ----------------------------------------------------------------------------------------------------------------------------------
Federated Dept. Stores, Inc. Common 31410H101 1,651,498 45,402 45,402
- ----------------------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners LP * Common 315293100 1,703,875 86,000 86,000
- ----------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 45,260,215 4,114,565 3,894,565 220,000
- ----------------------------------------------------------------------------------------------------------------------------------
First American Corp. TN Common 318900107 748,312 19,500 19,500
- ----------------------------------------------------------------------------------------------------------------------------------
First Cash, Inc. Common 31942D107 1,860,000 160,000 160,000
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
First Tennessee Natl. Corp. Common 337162101 1,624,657 59,484 59,484
- ----------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl A Common 344775200 5,199,344 489,350 489,350
- ----------------------------------------------------------------------------------------------------------------------------------
Ford Motor Common 345370100 16,209,125 344,875 344,875
- ----------------------------------------------------------------------------------------------------------------------------------
Forest Oil Corp Common 346091606 301,632 29,073 29,073
- ----------------------------------------------------------------------------------------------------------------------------------
Fort Bend Conv Sub Deb CnvtBl 346824AA3 475,625 250 (3) 250
- ----------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 33,386,956 672,785 614,285 58,500
- ----------------------------------------------------------------------------------------------------------------------------------
Gap, Inc. Common 364760108 5,897,450 111,800 111,800
- ----------------------------------------------------------------------------------------------------------------------------------
General Motors Common 370442105 10,483,594 191,045 191,045
- ----------------------------------------------------------------------------------------------------------------------------------
Grand Casinos Inc Common 385269105 174,625 22,000 22,000
- ----------------------------------------------------------------------------------------------------------------------------------
Grove Property Trust* Common 399613108 3,172,000 317,200 317,200
- ----------------------------------------------------------------------------------------------------------------------------------
Hallwood Energy Partners, L.P. Common 40636P201 1,026,250 205,250 205,250
- ----------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 14,690,998 371,924 371,924
- ----------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 8,882,717 295,475 278,975 16,500
- ----------------------------------------------------------------------------------------------------------------------------------
J. C. Penney Common 708160106 2,915,635 64,882 64,882
- ----------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 12,221,850 828,600 828,600
- ----------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp. Common 486587108 42,567,494 1,617,767 1,512,767 105,000
- ----------------------------------------------------------------------------------------------------------------------------------
K-Mart Corp. Common 482584109 1,837,200 153,100 153,100
- ----------------------------------------------------------------------------------------------------------------------------------
Kroger Co. Common 501044101 6,573,500 131,470 131,470
- ----------------------------------------------------------------------------------------------------------------------------------
Lechters Inc CnvtBl U52323AA7 887,500 250 (4) 250
- ----------------------------------------------------------------------------------------------------------------------------------
Limited, Inc. Common 532716107 1,668,566 76,060 76,060
- ----------------------------------------------------------------------------------------------------------------------------------
Local Financial Corporation Common 539553107 1,164,375 135,000 135,000
- ----------------------------------------------------------------------------------------------------------------------------------
Lowe's Co. Common 548661107 2,058,269 64,700 64,700
- ----------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 15,523,864 1,379,899 1,282,399 97,500
- ----------------------------------------------------------------------------------------------------------------------------------
May Dept. Stores Common 577778103 1,583,625 30,750 30,750
- ----------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 15,109,109 560,895 489,895 71,000
- ----------------------------------------------------------------------------------------------------------------------------------
Medical Assurance, Inc. Common 58449U100 657,780 24,822 24,822
- ----------------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 55,365,802 1,187,470 1,120,616 66,854
- ----------------------------------------------------------------------------------------------------------------------------------
Municipal Mortgage & Equity * Common 62624B101 5,244,356 266,380 266,380
- ----------------------------------------------------------------------------------------------------------------------------------
National Commerce Bancorporati Common 635449101 988,746 59,924 59,924
- ----------------------------------------------------------------------------------------------------------------------------------
Nationsbank Corp. Common 638585109 352,244 6,584 6,584
- ----------------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 16,308,949 699,580 699,580
- ----------------------------------------------------------------------------------------------------------------------------------
Newell Co. Common 651192106 1,778,934 38,620 38,620
- ----------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Common 655844108 3,232,912 111,240 111,240
- ----------------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 12,238,845 815,923 815,923
- ----------------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Corp.* Common 67574M106 2,939,062 376,200 376,200
- ----------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 16,330,431 1,866,335 1,786,335 80,000
- ----------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l. Common 680223104 24,340,953 1,069,932 1,016,432 53,500
- ----------------------------------------------------------------------------------------------------------------------------------
Payless ShoeSource, Inc. Common 704379106 1,169,464 28,265 28,265
- ----------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 2,994,469 136,500 136,500
- ----------------------------------------------------------------------------------------------------------------------------------
Pfizer Co. Common 717081103 324,124 3,065 3,065
- ----------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 2,364,762 51,130 51,130
- ----------------------------------------------------------------------------------------------------------------------------------
Plum Creek Timber, L.P. * Common 729237107 1,877,400 67,050 67,050
- ----------------------------------------------------------------------------------------------------------------------------------
Premark Int'l Inc. Common 740459102 204,856 7,300 7,300
- ----------------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc. 10.50% Sr. Pfd 741570204 5,418,475 224,600 224,600
- ----------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Common 742718109 270,275 3,800 3,800
- ----------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 717,030 28,257 28,257
- ----------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 19,563,570 501,630 458,130 43,500
- ----------------------------------------------------------------------------------------------------------------------------------
Rite Aid Common 767754104 2,689,835 75,770 75,770
- ----------------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 37,454,515 1,669,282 1,562,782 106,500
- ----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl A Common 810022103 13,259,198 1,191,838 1,090,338 101,500
- ----------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl B Common 810022202 264,000 24,000 24,000
- ----------------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. Common 812387108 4,453,658 100,790 100,790
- ----------------------------------------------------------------------------------------------------------------------------------
Shoney's, Inc. Common 825039100 5,221,562 2,695,000 2,695,000
- ----------------------------------------------------------------------------------------------------------------------------------
Southdown Inc. Common 841297104 35,623,890 791,642 740,642 51,000
- ----------------------------------------------------------------------------------------------------------------------------------
Southwest Airlines Common 844741108 2,009,569 99,238 99,238
- ----------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs, Inc. Common 860342104 11,697,066 995,495 913,495 82,000
- ----------------------------------------------------------------------------------------------------------------------------------
Storage Trust Realty * Common 861909109 517,000 22,000 22,000
- ----------------------------------------------------------------------------------------------------------------------------------
Storage USA, Inc. * Common 861907103 1,541,560 45,340 45,340
- ----------------------------------------------------------------------------------------------------------------------------------
Sun Communities Inc. Common 866674104 1,094,137 32,600 32,600
- ----------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 28,935,613 829,695 761,695 68,000
- ----------------------------------------------------------------------------------------------------------------------------------
Teppco Partners LP UT Ltd Part Common 872384102 447,312 17,000 17,000
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Toys R Us Common 892335100 1,462,719 90,361 90,361
- ----------------------------------------------------------------------------------------------------------------------------------
Travel Ports of America Common 894167105 41,642 14,176 14,176
- ----------------------------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. Common 894190107 409,687 10,925 10,925
- ----------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Common 895290104 30,583,871 1,050,090 985,090 65,000
- ----------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 185,650 15,800 15,800
- ----------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. Common 907818108 2,625,572 61,597 61,597
- ----------------------------------------------------------------------------------------------------------------------------------
United Companies Finl 6.75% Pf Pfd 909870206 1,851,025 116,600 116,600
- ----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp Common 909870107 14,130,800 1,766,350 1,630,350 136,000
- ----------------------------------------------------------------------------------------------------------------------------------
UNUM Corp. Common 903192102 3,544,209 71,330 71,330
- ----------------------------------------------------------------------------------------------------------------------------------
US Airways Group Common 911905107 2,196,872 43,395 43,395
- ----------------------------------------------------------------------------------------------------------------------------------
Wabash National Corp Common 929566107 415,581 28,175 28,175
- ----------------------------------------------------------------------------------------------------------------------------------
Walgreen Co. Common 931422109 4,329,141 98,250 98,250
- ----------------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores Common 931142103 29,627,999 542,389 542,389
- ----------------------------------------------------------------------------------------------------------------------------------
Weatherford International Common 947074100 22,674,461 1,048,530 962,130 86,400
- ----------------------------------------------------------------------------------------------------------------------------------
Winston Hotels Inc Cum Pfd 9.2 Pfd 97563A201 425,000 20,000 20,000
- ----------------------------------------------------------------------------------------------------------------------------------
=============
1,095,609,718
=============
ITEM 6 - Sole investment Discretion
ITEM 7 - Not applicable
(1) Converts to 21,000 shares
(2) Converts to 34,397.01 shares
(3) Converts to 23,148 shares
(4) Converts to 40,987.65 shares
</TABLE>
<PAGE> 5
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>
Alltel Corp. Common 020039103 3,971,874 84,283
- ----------------------------------------------------------------------------------------------------------------------------
AGCO Corporation Common 001084102 982,840 151,205
- ----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 1,875,061 87,720
- ----------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Inc. Common 042735100 282,394 21,515
- ----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 1,673,936 45,471
- ----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 1,924,746 64,425
- ----------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 3,303,083 182,864
- ----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 2,360,822 154,805
- ----------------------------------------------------------------------------------------------------------------------------
Cedar Fair L.P. Prtnrshp 150185106 206,290 8,420
- ----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 3,868,874 126,587
- ----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 2,365,147 99,846
- ----------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mtg. Common 313400301 2,740,066 55,215
- ----------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 2,150,390 195,490
- ----------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 3,006 100
- ----------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 2,736,945 104,015
- ----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 1,081,206 96,103
- ----------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 2,352,508 87,330
- ----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 2,914,396 62,508
- ----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 943,381 107,810
- ----------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 2,702,294 118,780
- ----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 2,188,290 56,110
- ----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 1,824,713 81,322
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc. CL A Common 810022103 1,290,421 115,990
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc. CL B Common 810022202 6,394 550
- ----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 2,113,605 46,969
- ----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs Inc. Common 860342104 1,248,543 106,255
- ----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 2,252,094 64,575
- ----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 2,400,173 82,408
- ----------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 207,872 17,690
- ----------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp. Common 909870107 987,560 123,445
- ----------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp.-Pfd Preferred 909870206 11,430 720
- ----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra Inc. Common 947071106 1,671,839 77,310
- ----------------------------------------------------------------------------------------------------------------------------
===================
56,642,193
===================
</TABLE>
Sole discretion and voting authority are applicable
<PAGE> 6
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>
Alltel Corp. Common 020039103 1,479,395 31,393
- ----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 490,663 22,955
- ----------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 180,830 27,820
- ----------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 227,719 17,350
- ----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 471,384 12,805
- ----------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 9,669 810
- ----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 520,721 17,430
- ----------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp Common 11815H104 1,113,643 61,655
- ----------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 773,888 66,215
- ----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 895,340 37,798
- ----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 782,783 51,330
- ----------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 245,000 10,000
- ----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 1,129,682 36,963
- ----------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 9,713 840
- ----------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 4,912 1,690
- ----------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 39,398 1,690
- ----------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 690,036 13,905
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl A Common 810022103 526,658 47,340
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl B Common 810022202 2,200 200
- ----------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 730,785 66,435
- ----------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 769,149 25,585
- ----------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 10,325 700
- ----------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 951,855 36,175
- ----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 458,764 40,779
- ----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 986,102 21,150
- ----------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 150,000 10,000
- ----------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 847,574 37,256
- ----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 237,781 27,175
- ----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 717,990 18,410
- ----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 704,784 31,411
- ----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 692,100 15,380
- ----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 376,999 32,085
- ----------------------------------------------------------------------------------------------------------------------------
Storage USA Inc. Common 861907103 22,780 670
- ----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 864,377 24,785
- ----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 778,511 26,730
- ----------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 238,000 29,750
- ----------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp.-6.75% Preferred 909870206 138,589 8,730
- ----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 480,854 22,236
- ----------------------------------------------------------------------------------------------------------------------------
===================
19,750,953
===================
</TABLE>
Sole discretion and voting authority are applicable
<PAGE> 7
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
FINANCIAL 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>
Alltel Corp. Common 020039103 23,515 499
- ----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 12,398 580
- ----------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 8,710 1,340
- ----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 9,939 270
- ----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 11,204 375
- ----------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp Common 11815H104 19,861 1,100
- ----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 17,762 750
- ----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 14,488 950
- ----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 20,259 663
- ----------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 21,835 440
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc - Cl A Common 810022103 8,956 805
- ----------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 13,860 1,260
- ----------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 15,653 595
- ----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 7,763 690
- ----------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 15,489 575
- ----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 18,752 402
- ----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 5,688 650
- ----------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 15,107 664
- ----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 12,675 325
- ----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 9,668 431
- ----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 14,400 320
- ----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 7,873 670
- ----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 13,078 375
- ----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 15,873 545
- ----------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 6,800 850
- ----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 16,976 785
- ----------------------------------------------------------------------------------------------------------------------------
===================
358,582
===================
</TABLE>
Sole discretion and voting authority are applicable
