<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, 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 8th day of February,
1999.
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 4,598,567 583,945 570,945 13,000
- ------------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Class A Common 013068200 24,633,647 975,590 960,590 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
Alltel Corp. Common 020039103 38,954,805 651,282 643,282 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
American Stores Co. Common 030096101 5,141,515 139,195 139,195
- ------------------------------------------------------------------------------------------------------------------------------------
AMR Corp. Common 001765106 2,810,219 47,330 47,330
- ------------------------------------------------------------------------------------------------------------------------------------
Amsouth Bancorp Common 032165102 1,281,059 28,078 28,078
- ------------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 13,183,625 494,000 494,000
- ------------------------------------------------------------------------------------------------------------------------------------
Astec Industries Inc Common 046224101 3,059,375 55,000 55,000
- ------------------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. Common 053332102 6,058,030 183,925 183,925
- ------------------------------------------------------------------------------------------------------------------------------------
Avnet Inc. Common 053807103 26,212,835 433,270 426,770 6,500
- ------------------------------------------------------------------------------------------------------------------------------------
BankAmerica Corp Common 06605F102 329,244 5,476 5,476
- ------------------------------------------------------------------------------------------------------------------------------------
Bankunited Cap Tr Pfd B 10.25 Pfd 06651Y401 400,000 400 400
- ------------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 3,915,741 344,241 344,241
- ------------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 19,219,936 564,255 556,255 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
BJ's Wholesale Club, Inc. Common 05548J106 7,660,087 165,400 165,400
- ------------------------------------------------------------------------------------------------------------------------------------
Black & Decker Common 091797100 1,735,134 30,950 30,950
- ------------------------------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp. Common 103304101 132,500 40,000 40,000
- ------------------------------------------------------------------------------------------------------------------------------------
Buckeye Partners L.P.* Common 118230101 406,000 14,000 14,000
- ------------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 118255108 41,440,135 2,774,235 2,749,235 25,000
- ------------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe C Common 12189T104 4,255,528 124,249 124,249
- ------------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 209,503 5,850 5,850
- ------------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Cl A Common 127097103 24,516,825 1,634,455 1,614,455 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 22,085,954 1,484,770 1,484,770
- ------------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P.* Common 150185106 15,319,200 589,200 589,200
- ------------------------------------------------------------------------------------------------------------------------------------
Cendant Corp. Common 151313103 3,895,331 201,700 201,700
- ------------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. Common 172967101 542,836 10,925 10,925
- ------------------------------------------------------------------------------------------------------------------------------------
Coca Cola Company Common 191216100 600,320 8,960 8,960
- ------------------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Common 194162103 1,225,950 13,200 13,200
- ------------------------------------------------------------------------------------------------------------------------------------
Columbia Energy Group Common 197648108 259,875 4,500 4,500
- ------------------------------------------------------------------------------------------------------------------------------------
Community Bank (Calif) 13% Non Pfd 203507207 271,250 10,000 10,000
- ------------------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 47,035,935 1,542,162 1,527,162 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 676,200 33,496 33,496
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Portfolio Services Common 210502100 9,628,212 2,484,700 2,484,700
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Express, Inc. 4.500% Due 07-01-00 CnvtBl 219888AE4 709,500 825 825(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 2,416,332 33,473 33,473
- ------------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 32,838,323 1,239,182 1,221,682 17,500
- ------------------------------------------------------------------------------------------------------------------------------------
CSX Corp. Common 126408103 2,235,190 53,860 53,860
- ------------------------------------------------------------------------------------------------------------------------------------
CTBI Preferred Cap Trust 9% Pfd 12641H201 515,000 20,000 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
CVS Corp. Common 126650100 4,782,250 86,950 86,950
- ------------------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Common 239753106 5,599,142 103,210 103,210
- ------------------------------------------------------------------------------------------------------------------------------------
Delta Airlines Common 247361108 977,080 18,790 18,790
- ------------------------------------------------------------------------------------------------------------------------------------
Developers Div Realty 7.000% Due 08-15-99 CnvtBl 251591AA1 580,457 574 574(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Discount Auto Parts Inc Common 254642101 5,110,341 232,950 232,950
- ------------------------------------------------------------------------------------------------------------------------------------
Dollar Gen Corp Com Common 256669102 1,156,444 48,950 48,950
- ------------------------------------------------------------------------------------------------------------------------------------
Eagle USA Airfreight Inc Common 270018104 611,887 24,975 24,975
- ------------------------------------------------------------------------------------------------------------------------------------
East West Bank Common 27579G207 1,850,000 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund AT&T Common 294700703 256,040 1,384 1,384
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc.* Common 294703103 214,445 22,280 22,280
- ------------------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 1,940,732 485,183 485,183
- ------------------------------------------------------------------------------------------------------------------------------------
Exxon Corp Common 302290101 368,184 5,035 5,035
- ------------------------------------------------------------------------------------------------------------------------------------
FDX Corp. Common 31304N107 3,500,163 39,245 39,245
- ------------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Asso Common 313586109 383,320 5,180 5,180
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Dept. Stores, Inc. Common 31410H101 1,956,043 44,902 44,902
- ------------------------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners LP* Common 315293100 1,341,187 77,750 77,750
- ------------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 91,308,027 5,914,690 5,859,690 55,000
- ------------------------------------------------------------------------------------------------------------------------------------
First American Corp. TN Common 318900107 865,312 19,500 19,500
- ------------------------------------------------------------------------------------------------------------------------------------
First Cash, Inc. Common 31942D107 2,290,000 160,000 160,000
- ------------------------------------------------------------------------------------------------------------------------------------
First Tennessee Natl. Corp. Common 337162101 2,258,971 59,349 59,349
- ------------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl A Common 344775200 5,165,344 486,150 486,150
- ------------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl B Common 344775101 1,006,250 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------------------
Ford Motor Common 345370100 20,069,658 341,975 341,975
- ------------------------------------------------------------------------------------------------------------------------------------
Forest Oil Corp Common 346091606 247,120 29,073 29,073
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Fort Bend Holding Corp. Common 346824105 567,126 23,148 23,148
- ------------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 12,019,527 186,530 186,530
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc. Common 364760108 9,329,378 166,225 166,225
- ------------------------------------------------------------------------------------------------------------------------------------
General Electric Common 369604103 249,900 2,450 2,450
- ------------------------------------------------------------------------------------------------------------------------------------
General Motors Common 370442105 13,564,314 189,545 189,545
- ------------------------------------------------------------------------------------------------------------------------------------
Grand Casinos Inc Common 385269105 225,750 28,000 28,000
- ------------------------------------------------------------------------------------------------------------------------------------
Grove Property Trust* Common 399613108 3,691,850 314,200 314,200
- ------------------------------------------------------------------------------------------------------------------------------------
Hallwood Energy Partners, L.P. Common 40636P201 744,031 205,250 205,250
- ------------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 22,744,862 371,724 371,724
- ------------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 7,269,545 297,475 297,475
- ------------------------------------------------------------------------------------------------------------------------------------
J. C. Penney Common 708160106 3,064,781 65,382 65,382
- ------------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 13,815,000 921,000 921,000
- ------------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp. Common 486587108 60,257,886 1,504,097 1,489,097 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
K-Mart Corp. Common 482584109 2,327,500 152,000 152,000
- ------------------------------------------------------------------------------------------------------------------------------------
Kohls Corp Com Common 500255104 2,623,381 42,700 42,700
- ------------------------------------------------------------------------------------------------------------------------------------
Kroger Co. Common 501044101 7,905,535 130,670 130,670
- ------------------------------------------------------------------------------------------------------------------------------------
Lechters Inc 5.000% Due 09-27-01 CnvtBl 130000GW6 941,850 273 273(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Limited, Inc. Common 532716107 2,206,510 75,760 75,760
- ------------------------------------------------------------------------------------------------------------------------------------
Local Financial Corporation Common 539553107 1,215,000 135,000 135,000
- ------------------------------------------------------------------------------------------------------------------------------------
Lowe's Co. Common 548661107 3,281,119 64,100 64,100
- ------------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 17,508,240 1,421,989 1,406,989 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
May Dept. Stores Common 577778103 1,850,494 30,650 30,650
- ------------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 11,597,447 469,770 458,770 11,000
- ------------------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 20,998,284 446,772 437,772 9,000
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Assurance, Inc. Common 58449U100 902,741 27,304 27,304
- ------------------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 76,916,031 1,528,766 1,512,766 16,000
- ------------------------------------------------------------------------------------------------------------------------------------
Morgan Keegan (Restricted) Common 617410105 949,219 50,625 50,625
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Mortgage & Equity* Common 62624B101 4,478,615 267,380 267,380
- ------------------------------------------------------------------------------------------------------------------------------------
National Commerce Bancorporati Common 635449101 877,114 46,624 46,624
- ------------------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 14,655,820 660,544 660,544
- ------------------------------------------------------------------------------------------------------------------------------------
Newell Co. Common 651192106 1,582,762 38,370 38,370
- ------------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Common 655844108 3,484,516 109,965 109,965
- ------------------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 8,780,277 595,273 595,273
- ------------------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Corp.* Common 67574M106 2,845,150 591,200 591,200
- ------------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 31,815,623 2,584,010 2,559,710 24,300
- ------------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l. Common 680223104 9,007,223 400,321 400,321
- ------------------------------------------------------------------------------------------------------------------------------------
Payless ShoeSource, Inc. Common 704379106 1,329,579 28,065 28,065
- ------------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 3,187,603 173,475 173,475
- ------------------------------------------------------------------------------------------------------------------------------------
Pfizer Co. Common 717081103 366,875 2,935 2,935
- ------------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 2,715,125 50,750 50,750
- ------------------------------------------------------------------------------------------------------------------------------------
Plum Creek Timber, L.P.* Common 729237107 1,692,759 64,950 64,950
- ------------------------------------------------------------------------------------------------------------------------------------
Premark Int'l Inc. Common 740459102 252,762 7,300 7,300
- ------------------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc. 10.50% Sr. Pfd 741570204 5,643,562 228,600 228,600
- ------------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Common 742718109 346,987 3,800 3,800
- ------------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 702,843 28,255 28,255
- ------------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 18,325,462 397,300 390,800 6,500
- ------------------------------------------------------------------------------------------------------------------------------------
Rite Aid Common 767754104 3,739,707 75,170 75,170
- ------------------------------------------------------------------------------------------------------------------------------------
Safeway Inc Com New Common 786514208 3,717,187 61,000 61,000
- ------------------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 49,148,967 1,557,195 1,540,695 16,500
- ------------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 18,165,579 1,098,863 1,081,363 17,500
- ------------------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. Common 812387108 4,262,325 100,290 100,290
- ------------------------------------------------------------------------------------------------------------------------------------
Shoney's, Inc. Common 825039100 3,327,500 2,420,000 2,420,000
- ------------------------------------------------------------------------------------------------------------------------------------
Southdown Inc. Common 841297104 43,798,928 740,003 734,003 6,000
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Airlines Common 844741108 2,225,145 98,078 98,078
- ------------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs, Inc. Common 860342104 10,141,365 1,040,140 1,022,140 18,000
- ------------------------------------------------------------------------------------------------------------------------------------
Storage Trust Realty* Common 861909109 490,875 21,000 21,000
- ------------------------------------------------------------------------------------------------------------------------------------
Storage USA, Inc.* Common 861907103 1,432,736 44,340 44,340
- ------------------------------------------------------------------------------------------------------------------------------------
Sun Communities Inc.* Common 866674104 1,100,075 31,600 31,600
- ------------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 36,684,953 816,355 808,355 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
Teppco Partners LP UT Ltd Part Common 872384102 417,562 17,000 17,000
- ------------------------------------------------------------------------------------------------------------------------------------
Toys R Us Common 892335100 1,357,727 80,161 80,161
- ------------------------------------------------------------------------------------------------------------------------------------
Travel Ports of America Common 894167105 38,984 14,176 14,176
- ------------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Common 895290104 33,554,910 1,028,503 1,017,003 11,500
- ------------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. Common 907818108 2,744,171 60,897 60,897
- ------------------------------------------------------------------------------------------------------------------------------------
United Companies Finl 6.75% Pf Pfd 909870206 241,969 43,500 43,500
- ------------------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp Common 909870107 4,298,062 1,273,500 1,257,500 16,000
- ------------------------------------------------------------------------------------------------------------------------------------
UNUM Corp. Common 903192102 4,055,895 69,480 69,480
- ------------------------------------------------------------------------------------------------------------------------------------
US Airways Group Common 911905107 2,228,720 42,860 42,860
- ------------------------------------------------------------------------------------------------------------------------------------
Wabash National Corp Common 929566107 567,734 27,950 27,950
- ------------------------------------------------------------------------------------------------------------------------------------
Walgreen Co. Common 931422109 5,695,203 97,250 97,250
- ------------------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores Common 931142103 43,788,048 537,689 537,689
- ------------------------------------------------------------------------------------------------------------------------------------
Weatherford International Common 947074100 19,075,559 984,545 973,145 11,400
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Winston Hotels Inc Cum Pfd 9.2 Pfd 97563A201 382,500 20,000 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Young Broadcasting Class A Common 987434107 2,136,672 51,025 51,025
- ------------------------------------------------------------------------------------------------------------------------------------
1,233,925,131
==============
</TABLE>
(1) Converts to 24,750 shares
(2) Converts to 34,397.01 shares
(3) Converts to 44,758.51 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
Name of Issuer Title of Class CUSIP Fair Market Shares of
Number Value Principal Amount
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Alltel Corp. Common 020039103 4,647,645 77,703
- ------------------------------------------------------------------------------------------------------------------------------
AGCO Corporation Common 001084102 743,302 94,385
- ------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 2,171,218 85,988
- ------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Inc. Common 042735100 932,473 34,940
- ------------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 2,432,795 40,211
- ------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 1,931,032 56,690
- ------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 2,589,947 173,379
- ------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 73,416 2,050
- ------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 2,175,825 145,055
- ------------------------------------------------------------------------------------------------------------------------------
Cedar Fair L.P. Prtnrshp 150185106 218,920 8,420
- ------------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Common 194162103 2,322 25
- ------------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 3,602,397 118,109
- ------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 4,692 65
- ------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 2,627,102 99,134
- ------------------------------------------------------------------------------------------------------------------------------
CVS Corp. Common 126650100 4,950 90
- ------------------------------------------------------------------------------------------------------------------------------
Dollar Gen Corp Com Common 256669102 3,544 150
- ------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 1,668,310 25,890
- ------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Asso Common 313586109 3,330 45
- ------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 4,971,726 322,045
- ------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 2,488 40
- ------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 284,706 11,650
- ------------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 3,955,022 98,720
- ------------------------------------------------------------------------------------------------------------------------------
Kohls Corp Com Common 500255104 6,758 110
- ------------------------------------------------------------------------------------------------------------------------------
Lowe's Co. Common 548661107 6,143 120
- ------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 1,211,614 98,399
- ------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 1,868,389 75,680
- ------------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 1,226,935 26,105
- ------------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 3,990,264 79,309
- ------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 1,768,271 143,610
- ------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 1,765,338 78,457
- ------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 2,470,247 53,555
- ------------------------------------------------------------------------------------------------------------------------------
Safeway Inc Com New Common 786514208 6,094 100
- ------------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 2,624,867 83,163
- ------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 1,775,845 107,425
- ------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 2,683,161 45,333
- ------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs Inc. Common 860342104 1,380,100 141,545
- ------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 2,786,607 62,010
- ------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 2,541,612 77,903
- ------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp. Common 909870107 323,217 95,760
- ------------------------------------------------------------------------------------------------------------------------------
United Companies Financial Corp.-Pfd Preferred 909870206 4,841 870
- ------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra Inc. Common 947071106 1,439,481 74,295
- ------------------------------------------------------------------------------------------------------------------------------
64,926,946
==============
</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 1,256,900 21,014
- ----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 549,945 21,780
- ----------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 159,744 20,285
- ----------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 547,761 20,525
- ----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 665,803 11,005
- ----------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 2,275 200
- ----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 334,323 9,815
- ----------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp Common 11815H104 908,275 60,805
- ----------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 17,906 500
- ----------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 922,101 61,990
- ----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 995,049 37,549
- ----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 707,925 47,195
- ----------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 260,000 10,000
- ----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 1,041,514 34,148
- ----------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 8,085 840
- ----------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 5,040 1,260
- ----------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 216,832 3,365
- ----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 691,172 41,810
- ----------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 1,751,076 113,430
- ----------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 499,136 20,425
- ----------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 10,500 700
- ----------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 1,377,148 34,375
- ----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 424,806 34,502
- ----------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 729,675 15,525
- ----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 1,441,755 28,656
- ----------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 124,055 5,025
- ----------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 29,554 1,332
- ----------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 387,743 17,233
- ----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 427,244 34,700
- ----------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Corp.* Common 67574M106 4,813 1,000
- ----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 764,522 16,575
- ----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 986,896 31,268
- ----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 846,085 14,295
- ----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 246,090 25,240
- ----------------------------------------------------------------------------------------------------------------------------
Storage USA Inc. Common 861907103 16,479 510
- ----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 1,051,313 23,395
- ----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 836,994 25,655
- ----------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp. Common 909870107 62,691 18,575
- ----------------------------------------------------------------------------------------------------------------------------
United Cos Financial Corp.-6.75% Preferred 909870206 39,327 7,070
- ----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 383,916 19,815
- ----------------------------------------------------------------------------------------------------------------------------
21,732,466
==============
</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
Name of Issuer Title of Class CUSIP Fair Market Shares of
Number Value Principal Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Alltel Corp. Common 020039103 16,987 284
- --------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 14,645 580
- --------------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 5,276 670
- --------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 12,773 375
- --------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp Common 11815H104 16,432 1,100
- --------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 19,875 750
- --------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 14,250 950
- --------------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 20,222 663
- --------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 14,498 225
- --------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 29,331 1,900
- --------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 9,775 400
- --------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 23,837 595
- --------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 8,496 690
- --------------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 27,219 541
- --------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 8,003 650
- --------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 14,108 627
- --------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 14,991 325
- --------------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 13,604 431
- --------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 6,282 380
- --------------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 18,941 320
- --------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 6,630 680
- --------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 16,852 375
- --------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 17,781 545
- --------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 15,210 785
- --------------------------------------------------------------------------------------------------------------------------------
366,016
=============
</TABLE>
Sole discretion and voting authority are applicable
