<PAGE> 1
UNITED STATES
SECURITIES 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 December 31, 1997
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 9th day of February,
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>
360 Communications Co. Common 885571109 36,095,472 1,788,011 1,655,511 132,500
- -----------------------------------------------------------------------------------------------------------------------------------
AMR Corp. Common 001765106 3,916,680 30,480
- -----------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 35,595,202 1,216,930 1,123,930 93,000
- -----------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Cl A Common 013068200 30,815,235 1,141,305 1,059,305 82,000
- -----------------------------------------------------------------------------------------------------------------------------------
American Stores Common 030096101 1,223,880 59,520
- -----------------------------------------------------------------------------------------------------------------------------------
AmSouth Bancorp. Common 32165102 1,038,401 19,119
- -----------------------------------------------------------------------------------------------------------------------------------
Astec Industries Inc. Common 46224101 167,500 10,000
- -----------------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. Common 53332102 1,371,700 47,300
- -----------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 37,979,568 575,448 523,948 51,500
- -----------------------------------------------------------------------------------------------------------------------------------
BJ's Wholesale Club, Inc. Common 05548J106 3,587,731 114,350
- -----------------------------------------------------------------------------------------------------------------------------------
Bankunited Cap Tr Pfd B 10.25 Pfd 66514401 401,200 400
- -----------------------------------------------------------------------------------------------------------------------------------
Beckman Instruments Common 075816108 738,000 18,450
- -----------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 7,545,240 548,745 536,745 12,000
- -----------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp. Common 084423102 30,670,599 699,045 636,045 63,000
- -----------------------------------------------------------------------------------------------------------------------------------
Black & Decker Common 091797100 703,125 18,000
- -----------------------------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp. Common 103304101 231,875 35,000
- -----------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 59,267,525 1,281,460 1,206,460 75,000
- -----------------------------------------------------------------------------------------------------------------------------------
Buckeye Partners L.P. Prtnrshp 118230101 405,562 7,000
- -----------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Common 121897102 3,774,471 40,613
- -----------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014101 324,891 7,250
- -----------------------------------------------------------------------------------------------------------------------------------
CPI Corp Common 125902106 27,078,301 1,196,831 1,127,842 68,989
- -----------------------------------------------------------------------------------------------------------------------------------
CSX Corp. Common 126408103 3,168,720 58,680
- -----------------------------------------------------------------------------------------------------------------------------------
CTBI Preferred Cap Trust 9% Pfd 12641H201 550,000 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
CVS Corp Common 126650100 2,559,297 39,950
- -----------------------------------------------------------------------------------------------------------------------------------
Cable Michigan Inc. Common 12685T103 9,945,181 434,762
- -----------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Class A Common 127097103 34,646,372 1,782,450 1,664,950 117,500
- -----------------------------------------------------------------------------------------------------------------------------------
Caliber Systems, Inc. Common 129894101 559,906 11,500
- -----------------------------------------------------------------------------------------------------------------------------------
Carson Pirie Scott Common 145903100 76,260,476 1,521,406 1,431,406 90,000
- -----------------------------------------------------------------------------------------------------------------------------------
Cash America Int'l Inc. Common 14754D100 1,282,106 99,100
- -----------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. Prtnrshp 150185106 15,902,775 614,600
- -----------------------------------------------------------------------------------------------------------------------------------
Chrysler Corp. Common 171196108 3,899,479 110,820
- -----------------------------------------------------------------------------------------------------------------------------------
Circuit City Stores Common 172737108 796,956 22,410
- -----------------------------------------------------------------------------------------------------------------------------------
Coca Cola Company Common 191216100 876,274 13,140
- -----------------------------------------------------------------------------------------------------------------------------------
Community Bank 13% Sr B Pfd 203507207 280,000 10,000
- -----------------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Common 194162103 1,029,000 14,000
- -----------------------------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc. Common 197648108 235,687 3,000
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Portfolio Services Common 210502100 14,271,950 1,482,800
- -----------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 1,524,970 34,173
- -----------------------------------------------------------------------------------------------------------------------------------
Criimi Mae Conv. Pfd Ser B 10.875% CnvtPfd 226603207 581,187 17,000 (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Criimi Mae Inc. Common 226603108 202,500 13,500
- -----------------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Common 239753106 3,250,462 48,155
- -----------------------------------------------------------------------------------------------------------------------------------
Developers Div Realty 7.000% CnvtBl 251591AA1 521,400 474 (2)
- -----------------------------------------------------------------------------------------------------------------------------------
Duke Power Pfd. 6.10% Pfd 264399726 507,500 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
Eagle Hardware & Garden Common 26959B101 1,937,500 100,000
- -----------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 179,950 12,200
- -----------------------------------------------------------------------------------------------------------------------------------
Excel Realty Trust Common 30067R107 17,374,077 551,558
- -----------------------------------------------------------------------------------------------------------------------------------
Exxon Corp. Common 302290101 330,657 5,404
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Express Common 313309106 1,785,162 29,235
- -----------------------------------------------------------------------------------------------------------------------------------
Federal National Mortage Assoc. Common 313586109 478,184 8,380
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Common 31410H101 1,797,945 41,752
- -----------------------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners L.P. Prtnrshp 315293100 2,602,212 116,300
- -----------------------------------------------------------------------------------------------------------------------------------
Figgie Int'l Hldg A Common 316828508 19,195,181 1,462,490 1,344,990 117,500
- -----------------------------------------------------------------------------------------------------------------------------------
Figgie International Class B Common 316828607 1,469,550 121,200
- -----------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 87,023,289 4,071,265 3,846,265 225,000
- -----------------------------------------------------------------------------------------------------------------------------------
First American Corp. TN Common 318900107 945,250 19,000
- -----------------------------------------------------------------------------------------------------------------------------------
First Tennessee Nat'l Corp Common 337162101 2,097,151 31,418
- -----------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl A Common 344775200 2,219,906 263,100
- -----------------------------------------------------------------------------------------------------------------------------------
Ford Motor Common 345370100 14,471,625 298,000
- -----------------------------------------------------------------------------------------------------------------------------------
Forest Oil Corp. Common 346091606 514,635 31,190
- -----------------------------------------------------------------------------------------------------------------------------------
Fort Bend Conv. Sub Deb Cnvtbl 346824AA3 490,625 250 (4)
- -----------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 43,813,784 1,044,740 946,240 98,500
- -----------------------------------------------------------------------------------------------------------------------------------
Gap, Inc. Common 364760108 3,652,720 103,075
- -----------------------------------------------------------------------------------------------------------------------------------
General Electric Common 369604103 226,582 3,088
- -----------------------------------------------------------------------------------------------------------------------------------
General Motors Common 370442105 13,311,540 219,120
- -----------------------------------------------------------------------------------------------------------------------------------
671,701,881
</TABLE>
<PAGE> 3
<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>
Grand Casinos, Inc. Common 385269105 272,500 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 87,942,443 3,358,184 3,195,684 162,500
- -----------------------------------------------------------------------------------------------------------------------------------
Grove Property Trust Common 399613108 3,730,125 343,000
- -----------------------------------------------------------------------------------------------------------------------------------
Hallwood Energy Partners L.P. Prtnrshp 40636M109 2,214,769 264,450
- -----------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 10,181,666 172,937
- -----------------------------------------------------------------------------------------------------------------------------------
Homebase, Inc. Common 197648108 681,581 86,550
- -----------------------------------------------------------------------------------------------------------------------------------
J. Ray McDermott S A Common P64658100 5,056,800 117,600 97,600 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
J.C. Penney Common 708160106 3,244,812 53,800
- -----------------------------------------------------------------------------------------------------------------------------------
JB Hunt Transport Services Inc. Common 445658107 281,250 15,000
- -----------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 6,711,600 319,600
- -----------------------------------------------------------------------------------------------------------------------------------
Jumbosports Inc. Conv Cnvtbl 481386AA8 61,125 150 (3)
- -----------------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 53,988,829 1,654,830 1,539,830 115,000
- -----------------------------------------------------------------------------------------------------------------------------------
Kroger Co. Common 501044101 4,447,485 121,020
- -----------------------------------------------------------------------------------------------------------------------------------
Limited, Inc. Common 532716107 1,753,380 68,760
- -----------------------------------------------------------------------------------------------------------------------------------
Lowe's Cos. Common 548661107 1,616,606 33,900
- -----------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 29,113,401 1,153,006 1,075,506 77,500
- -----------------------------------------------------------------------------------------------------------------------------------
Mac Frugal's Bargains Common 554152108 8,558,935 208,120
- -----------------------------------------------------------------------------------------------------------------------------------
May Dept. Stores Common 577778103 2,997,919 56,900
- -----------------------------------------------------------------------------------------------------------------------------------
Medical Assurance, Inc. Common 58449U100 664,931 23,642
- -----------------------------------------------------------------------------------------------------------------------------------
Merck & Co Common 589331107 288,320 2,720
- -----------------------------------------------------------------------------------------------------------------------------------
Mid-America Apartment Comm Common 59522J103 608,381 21,300
- -----------------------------------------------------------------------------------------------------------------------------------
Municipal Mortgage & Equity Common 62624B101 4,978,862 253,700
- -----------------------------------------------------------------------------------------------------------------------------------
National Commerce Bancorp Common 635449101 821,748 23,312
- -----------------------------------------------------------------------------------------------------------------------------------
Nationsbank Corp Common 638585109 400,389 6,584
- -----------------------------------------------------------------------------------------------------------------------------------
Newell Co. Common 651192106 1,632,850 38,420
- -----------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Common 655844108 3,244,590 106,380
- -----------------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Common 67574M106 2,378,000 116,000
- -----------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 53,528,134 1,439,412 1,344,612 94,800
- -----------------------------------------------------------------------------------------------------------------------------------
Pacific Corp 7.70% Pfd 695114678 536,875 5,000
- -----------------------------------------------------------------------------------------------------------------------------------
Payless Shoesource, Inc. Common 704379106 1,676,447 24,975
- -----------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 4,293,725 145,550
- -----------------------------------------------------------------------------------------------------------------------------------
Pfizer Co. Common 717081103 228,534 3,065
- -----------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 4,380,879 96,815
- -----------------------------------------------------------------------------------------------------------------------------------
Plum Creek Timber L.P. Prtnrshp 729237107 2,385,212 78,850
- -----------------------------------------------------------------------------------------------------------------------------------
Premark Int'l Inc. Common 740459102 211,700 7,300
- -----------------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc. 10.50% Sr Cum Pfd 741570204 5,389,200 199,600
- -----------------------------------------------------------------------------------------------------------------------------------
Proctor & Gamble Common 742718109 423,006 5,300
- -----------------------------------------------------------------------------------------------------------------------------------
Proffitt's Inc. Common 742925100 5,512,154 193,834
- -----------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 2,872,721 44,973
- -----------------------------------------------------------------------------------------------------------------------------------
RCN Corporation Common 749361101 4,649,437 135,750
- -----------------------------------------------------------------------------------------------------------------------------------
Riggs Nat'l Corp 10.75 Ser B Pfd 766570307 208,962 7,300
- -----------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 33,932,569 823,856 760,356 63,500
- -----------------------------------------------------------------------------------------------------------------------------------
Rite Aid Common 767754104 2,015,712 34,310
- -----------------------------------------------------------------------------------------------------------------------------------
Royce Value Trust Common 780910105 173,339 11,508
- -----------------------------------------------------------------------------------------------------------------------------------
Ryder Systems Inc. Common 783549108 643,374 19,645
- -----------------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co Common 812387108 4,191,960 92,640
- -----------------------------------------------------------------------------------------------------------------------------------
Sierrawest Bancorp Common 826527103 354,375 10,500
- -----------------------------------------------------------------------------------------------------------------------------------
Sotheby's Cl A Common 835898107 19,256,906 1,027,035 927,035 100,000
- -----------------------------------------------------------------------------------------------------------------------------------
Southdown Inc. Common 841297104 61,497,706 1,042,334 970,334 72,000
- -----------------------------------------------------------------------------------------------------------------------------------
Southern Calif Edison 6.45% Pfd 842400780 521,250 5,000
- -----------------------------------------------------------------------------------------------------------------------------------
446,757,474
</TABLE>
<PAGE> 4
<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>
Southwest Airlines Common 844741108 1,555,857 63,182
- -----------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs, Inc. Common 860342104 24,840,187 974,125 892,125 82,000
- -----------------------------------------------------------------------------------------------------------------------------------
Storage Trust Realty Common 861909109 578,875 22,000
- -----------------------------------------------------------------------------------------------------------------------------------
Storage U.S.A. Common 861907103 4,421,081 110,700
- -----------------------------------------------------------------------------------------------------------------------------------
Sun Communities Inc. Common 866674104 1,182,344 32,900
- -----------------------------------------------------------------------------------------------------------------------------------
TJX Companies Common 872540109 818,125 23,800
- -----------------------------------------------------------------------------------------------------------------------------------
Teppco Partners LP UT Ltd Partner Prtnrshp 872384102 447,844 8,500
- -----------------------------------------------------------------------------------------------------------------------------------
Toys R Us Common 892335100 5,209,854 165,721 145,721 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
Travel Ports of America Common 894167105 44,300 13,126
- -----------------------------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. Common 894190107 438,273 8,135
- -----------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Common 895290104 40,915,381 1,087,452 1,012,452 75,000
- -----------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 8,210,024 294,530 264,530 30,000
- -----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 27,619,915 1,781,930 1,645,930 136,000
- -----------------------------------------------------------------------------------------------------------------------------------
United Cos Financial 6.75% Pfd. Preferred 909870206 3,885,462 114,700
- -----------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. Common 907818108 3,677,465 58,722
- -----------------------------------------------------------------------------------------------------------------------------------
Unum Common 903192102 5,266,762 96,860
- -----------------------------------------------------------------------------------------------------------------------------------
Us Airways Group Common 911905107 2,568,750 41,100
- -----------------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores Common 931142103 19,994,379 506,989
- -----------------------------------------------------------------------------------------------------------------------------------
Walgreen Co. Common 931422109 3,115,537 99,300
- -----------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 44,643,987 1,020,434 945,434 75,000
- -----------------------------------------------------------------------------------------------------------------------------------
Winston Hotels Inc Cum 9.25% Pfd 97563A201 503,750 20,000
- -----------------------------------------------------------------------------------------------------------------------------------
Woolworth(F.W.) Common 980883995 582,725 28,600
- -----------------------------------------------------------------------------------------------------------------------------------
200,520,877
1,318,980,232
=============
</TABLE>
(1) converts to 38,834.80 shares
(2) converts to 14,202.27 shares ITEM 6 - Sole investment discretion
(3) converts to 5,882.36 shares ITEM 7 - not applicable
(4) converts to 23,148 shares
<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
CUSIP Fair Market Shares of
Name of Issuer Title of Class Number Value Principal Amount
-------------- -------------- --------- ----------- ----------------
<S> <C> <C> <C> <C>
360 Degrees Communications, Inc. Common 885571109 2,028,149 100,463
- --------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 1,805,355 66,865
- --------------------------------------------------------------------------------------------------------------------------------
AGCO Corporation Common 001084102 2,105,308 71,975
- --------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 2,275,086 34,471
- --------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 2,384,857 54,355
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 2,866,707 61,982
- --------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 1,801,711 79,633
- --------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 2,334,886 120,120
- --------------------------------------------------------------------------------------------------------------------------------
Carson Pirie Scott Common 145903100 4,014,540 80,090
- --------------------------------------------------------------------------------------------------------------------------------
Cedar Fair L.P. Prtnrshp 150185106 199,759 7,720
- --------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mtg. Common 313400301 2,300,309 54,850
- --------------------------------------------------------------------------------------------------------------------------------
Figgie Int'l Hldg A Common 316828508 1,978,860 150,768
- --------------------------------------------------------------------------------------------------------------------------------
Figgie Int;'l Hldg B Common 316828607 34,072 2,810
- --------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 3,462,040 161,965
- --------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 3,122,480 119,233
- --------------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 2,755,873 84,470
- --------------------------------------------------------------------------------------------------------------------------------
Mac Frugals Bargains Common 554152108 1,504,906 36,593
- --------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 1,531,563 60,655
- --------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 2,599,184 69,893
- --------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 363,818 8,040
- --------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 2,315,395 56,215
- --------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 2,909,880 49,320
- --------------------------------------------------------------------------------------------------------------------------------
Sothebys Hldgs Class A Common 835898107 1,571,191 83,795
- --------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs Inc. Common 860342104 2,053,389 80,525
- --------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 2,330,139 61,930
- --------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 669,852 24,030
- --------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp. Common 909870107 1,344,394 86,735
- --------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp.-Pfd Preferred 909870206 24,390 720
- --------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra Inc. Common 947071106 2,342,935 53,552
- --------------------------------------------------------------------------------------------------------------------------------
57,031,028
==========
</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
CUSIP Fair Market Shares of
Name of Issuer Title of Class Number Value Principal Amount
-------------- -------------- --------- ----------- ----------------
<S> <C> <C> <C> <C>
360 Communications Co. Common 885571109 654,681 32,430
- --------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 573,750 21,250
- --------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 691,909 23,655
- --------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 738,540 11,190
- --------------------------------------------------------------------------------------------------------------------------------
Beckman Instruments Corp Common 075816108 255,600 6,390
- --------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 11,138 810
- --------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 527,158 12,015
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp Common 11815H104 935,406 20,225
- --------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 565,738 25,005
- --------------------------------------------------------------------------------------------------------------------------------
Cable Michigan Inc. Common 12685T103 3,271 143
- --------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 718,118 36,945
- --------------------------------------------------------------------------------------------------------------------------------
Carson Pirie Scott Common 145903100 1,254,128 25,020
- --------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 9,884 382
- --------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 12,390 840
- --------------------------------------------------------------------------------------------------------------------------------
Excel Realty Trust Common 30067R107 64,260 2,040
- --------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mtg. Common 313400301 623,611 14,870
- --------------------------------------------------------------------------------------------------------------------------------
Figgie Int'l Hldg A Common 316828508 603,488 45,980
- --------------------------------------------------------------------------------------------------------------------------------
Figgie Int'l Class B Common 316828607 3,638 300
- --------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 1,038,718 48,595
- --------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 918,788 35,085
- --------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 18,900 900
- --------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 813,015 24,920
- --------------------------------------------------------------------------------------------------------------------------------
Mac Frugals Bargains Common 554152108 502,753 12,225
- --------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 510,151 20,204
- --------------------------------------------------------------------------------------------------------------------------------
Mid-America Apartment Comm Common 59522J103 8,854 310
- --------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 891,273 23,967
- --------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 3,194 50
- --------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 20,650 700
- --------------------------------------------------------------------------------------------------------------------------------
RCN Corporation Common 749361101 19,694 575
- --------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 775,149 18,820
- --------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 904,529 15,331
- --------------------------------------------------------------------------------------------------------------------------------
Sothebys Hldgs Class A Common 835898107 459,750 24,520
- --------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 766,913 30,075
- --------------------------------------------------------------------------------------------------------------------------------
Storage USA Inc. Common 861907103 26,758 670
- --------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 722,400 19,200
- --------------------------------------------------------------------------------------------------------------------------------
Tupperware Corporation Common 899896104 268,854 9,645
- --------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 235,135 15,170
- --------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp.-6.75% Preferred 909870206 304,875 9,000
- --------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 637,088 14,562
- --------------------------------------------------------------------------------------------------------------------------------
18,094,147
</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 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
CUSIP Fair Market Shares of
Name of Issuer Title of Class Number Value Principal Amount
-------------- -------------- --------- ----------- ----------------
<S> <C> <C> <C> <C>
Alberto Culver Co. Cl A Common 013068200 15,660 580
- --------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 16,673 570
- --------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 17,820 270
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp Common 11815H104 20,813 450
- --------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 16,969 750
- --------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 18,461 950
- --------------------------------------------------------------------------------------------------------------------------------
Carson Pirie Scott Common 145903100 18,797 375
- --------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 20,130 480
- --------------------------------------------------------------------------------------------------------------------------------
Figgie Int'l Hldg A Common 316828508 15,094 1,150
- --------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 26,933 1,260
- --------------------------------------------------------------------------------------------------------------------------------
Green Tree Financial Common 393505102 16,493 630
- --------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 20,880 640
- --------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 17,423 690
- --------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 18,963 510
- --------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 4,785 250
- --------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 19,356 470
- --------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 27,730 470
- --------------------------------------------------------------------------------------------------------------------------------
Sothebys Hldgs Class A Common 835898107 11,438 610
- --------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 17,085 670
- --------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 18,625 495
- --------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 13,175 850
- --------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 23,538 538
- --------------------------------------------------------------------------------------------------------------------------------
396,841
</TABLE>
Sole discretion and voting authority are applicable
