<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 March 31, 1999
If amended report check here:
NewSouth Capital Management, Inc.
- ---------------------------------
Name of Institutional Investment Manager
1000 Ridgeway Loop Road, Suite 233, Memphis, TN 38120-4023
- ---------------------------------------------------------------
Business Address (Street) (City) (State) (Zip)
D. Stephen Morrow (901) 761-5561 Executive Vice President
- -------------------------------------------------------------------------------
Name, Phone No., and Title of Person Duly Authorized to Submit This Report
The institutional investment manager submitting this Form and its attachments
and the person by whom it is signed represent hereby that all information
contained therein is true, correct and complete. It is understood that all
required items, statements and schedules are considered integral parts of this
Form and that the submission of any amendment represents that all unamended
items, statements and schedules remain true, correct and complete as previously
submitted.
Pursuant to the requirements of Securities Exchange Act of 1934, the
undersigned institutional investment manager has caused this report to be signed
on its behalf in the City of Memphis and State of Tennessee on the 12th day of
March, 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 Share of Volume Authority
Name of Issuer Title of Class Number Value Principal Amount Sole None
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AGCO Corp. Common 001084102 188,016 28,650
- ------------------------------------------------------------------------------------------------------------------------------------
Alberto Culver Class A Common 013068200 21,293,350 1,002,040 987,040 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
Albertsons, Inc. Common 013104104 2,754,537 50,600
- ------------------------------------------------------------------------------------------------------------------------------------
Alltel Corp. Common 020039103 33,252,237 533,102 525,102 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
American Stores Co. Common 030096101 5,174,400 156,800
- ------------------------------------------------------------------------------------------------------------------------------------
AMR Corp. Common 001765106 2,799,287 47,800
- ------------------------------------------------------------------------------------------------------------------------------------
Amsouth Bancorp Common 032165102 1,277,549 28,078
- ------------------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 18,054,750 1,203,650 1,183,650 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Astec Industries Inc Common 046224101 3,396,250 110,000
- ------------------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. Common 053332102 1,803,516 59,375
- ------------------------------------------------------------------------------------------------------------------------------------
Avnet Inc. Common 053807103 14,987,385 407,820 401,320 6,500
- ------------------------------------------------------------------------------------------------------------------------------------
BankAmerica Corp Common 06605F102 386,742 5,476
- ------------------------------------------------------------------------------------------------------------------------------------
Bankunited Cap Tr Pfd B 10.25 Pfd 0665LY401 392,000 400
- ------------------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 3,770,897 363,460
- ------------------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 13,562,097 553,555 545,555 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
BJ's Wholesale Club, Inc. Common 05548J106 16,797,242 638,375
- ------------------------------------------------------------------------------------------------------------------------------------
Black & Decker Common 091797100 1,722,720 31,075
- ------------------------------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp. Common 103304101 170,000 40,000
- ------------------------------------------------------------------------------------------------------------------------------------
BP Amoco PLC Common 055622104 200,384 1,984
- ------------------------------------------------------------------------------------------------------------------------------------
Buckeye Partners L.P. * Common 118230101 381,500 14,000
- ------------------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 118255108 46,257,540 3,304,110 3,269,110 35,000
- ------------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe C Common 12189T104 4,115,523 125,187
- ------------------------------------------------------------------------------------------------------------------------------------
Burlington Resources Common 122014103 233,634 5,850
- ------------------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Cl A Common 127097103 23,894,135 1,655,005 1,635,005 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 23,047,558 1,853,070
- ------------------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 17,233,237 685,900
- ------------------------------------------------------------------------------------------------------------------------------------
Cendant Corp. Common 151313103 3,831,375 240,400
- ------------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. Common 172967101 633,959 9,925
- ------------------------------------------------------------------------------------------------------------------------------------
Coca Cola Company Common 191216100 519,232 8,460
- ------------------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Common 194162103 1,214,400 13,200
- ------------------------------------------------------------------------------------------------------------------------------------
Columbia Energy Group Common 197648108 235,125 4,500
- ------------------------------------------------------------------------------------------------------------------------------------
Community Bank (Calif) 13% Non Pfd 203507207 270,000 10,000
- ------------------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 45,054,498 1,459,255 1,444,255 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 36,084,637 1,190,421 1,175,421 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Portfolio Services Common 210502100 6,850,687 2,435,800
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Express, Inc.4.500% Due 07-01-00 CnvtBl 219888AE4 1,040,944 1,155 (1)
- ------------------------------------------------------------------------------------------------------------------------------------
Costco Company Common 22160Q102 3,098,750 33,843
- ------------------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 29,140,417 1,302,365 1,284,865 17,500
- ------------------------------------------------------------------------------------------------------------------------------------
CSX Corp. Common 126408103 2,109,828 54,185
- ------------------------------------------------------------------------------------------------------------------------------------
CTBI Preferred Cap Trust 9% Pfd 12641H201 535,000 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
CVS Corp. Common 126650100 4,163,375 87,650
- ------------------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Common 239753106 6,929,000 104,000
- ------------------------------------------------------------------------------------------------------------------------------------
Delta Airlines Common 247361108 1,307,642 18,815
- ------------------------------------------------------------------------------------------------------------------------------------
Developers Div Realty 7.000% Due 08-15-99 CnvtBl 251591AA1 571,847 574 (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Discount Auto Parts Inc Common 254642101 9,514,287 442,525
- ------------------------------------------------------------------------------------------------------------------------------------
Dollar Gen Corp Com Common 256669102 1,674,500 49,250
- ------------------------------------------------------------------------------------------------------------------------------------
Eagle USA Airfreight Inc Common 270018104 816,400 25,120
- ------------------------------------------------------------------------------------------------------------------------------------
East West Bancorp Inc. Common 27579R104 1,430,000 160,000
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Income Fund AT&T Common 294700703 245,314 1,384
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc.* Common 294703103 189,380 22,280
- ------------------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 1,321,231 384,358
- ------------------------------------------------------------------------------------------------------------------------------------
Exxon Corp Common 302290101 342,934 4,860
- ------------------------------------------------------------------------------------------------------------------------------------
FDX Corp. Common 31304N107 3,676,755 39,535
- ------------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Asso Common 313586109 358,715 5,180
- ------------------------------------------------------------------------------------------------------------------------------------
Federated Dept. Stores, Inc. Common 31410H101 2,554,036 63,652
- ------------------------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners LP * Common 315293100 1,519,594 90,050
- ------------------------------------------------------------------------------------------------------------------------------------
Fingerhut Companies Common 317867109 750,000 30,000
- ------------------------------------------------------------------------------------------------------------------------------------
First American Corp. TN Common 318900107 719,062 19,500
- ------------------------------------------------------------------------------------------------------------------------------------
First Cash Finl Svcs, Inc. Common 31942D107 1,460,000 160,000
- ------------------------------------------------------------------------------------------------------------------------------------
First Tennessee Natl. Corp. Common 337162101 2,038,438 55,657
- ------------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl A Common 344775200 4,860,630 528,150
- ------------------------------------------------------------------------------------------------------------------------------------
Food Lion Inc Cl B Common 344775101 1,579,500 175,500
- ------------------------------------------------------------------------------------------------------------------------------------
Ford Motor Common 345370100 21,634,501 381,645
- ------------------------------------------------------------------------------------------------------------------------------------
Forest Oil Corp Common 346091606 212,670 28,356
- ------------------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 10,322,268 180,105
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc. Common 364760108 11,252,967 167,175
- ------------------------------------------------------------------------------------------------------------------------------------
General Electric Common 369604103 271,031 2,450
- ------------------------------------------------------------------------------------------------------------------------------------
General Motors Common 370442105 16,586,115 190,645
- ------------------------------------------------------------------------------------------------------------------------------------
Grove Property Trust* Common 399613108 3,613,125 307,500
- ------------------------------------------------------------------------------------------------------------------------------------
Hallwood Energy Partners, L.P. Common 40636P201 749,875 214,250
- ------------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. Common 437076102 23,370,144 375,424
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Energy Hld Sponsor Common 45384X108 187,625 19,000
- ------------------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 9,197,766 307,875
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
J. C. Penney Common 708160106 2,664,171 65,782
- ------------------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 15,579,000 1,298,250
- ------------------------------------------------------------------------------------------------------------------------------------
Kaydon Corp. Common 486587108 43,082,787 1,488,822 1,473,822 15,000
- ------------------------------------------------------------------------------------------------------------------------------------
K-Mart Corp. Common 482584109 2,573,994 153,100
- ------------------------------------------------------------------------------------------------------------------------------------
Kohls Corp Com Common 500255104 3,040,537 42,900
- ------------------------------------------------------------------------------------------------------------------------------------
Kroger Co. Common 501044101 7,768,781 129,750
- ------------------------------------------------------------------------------------------------------------------------------------
Lechters Inc 5.000% Due 09-27-01 CnvtBl 130000GW6 1,718,200 484 (3)
- ------------------------------------------------------------------------------------------------------------------------------------
Limited, Inc. Common 532716107 3,015,740 76,107
- ------------------------------------------------------------------------------------------------------------------------------------
Local Financial Corporation Common 539553107 1,257,187 135,000
- ------------------------------------------------------------------------------------------------------------------------------------
Lowe's Co. Common 548661107 3,914,350 64,700
- ------------------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 20,855,252 1,627,727 1,602,727 25,000
- ------------------------------------------------------------------------------------------------------------------------------------
May Dept. Stores Common 577778103 1,808,983 46,236
- ------------------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 10,863,366 429,170 418,170 11,000
- ------------------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 26,515,099 417,972 408,972 9,000
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Assurance, Inc. Common 58449U100 764,484 27,303
- ------------------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 58,531,153 1,449,688 1,433,688 16,000
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Mortgage & Equity * Common 62624B101 5,367,352 288,180
- ------------------------------------------------------------------------------------------------------------------------------------
National Commerce Bancorporati Common 635449101 1,063,610 46,624
- ------------------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 11,136,214 580,389
- ------------------------------------------------------------------------------------------------------------------------------------
Newell Rubbermaid Inc Common 651229106 1,841,575 38,770
- ------------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Common 655844108 2,920,108 110,715
- ------------------------------------------------------------------------------------------------------------------------------------
Norrell Corp Common 656301108 7,878,621 603,148
- ------------------------------------------------------------------------------------------------------------------------------------
Ocwen Asset Investment Corp.* Common 67574M106 2,495,700 676,800
- ------------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 36,512,258 4,143,235 4,108,235 35,000
- ------------------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l. Common 680223104 5,404,391 296,131
- ------------------------------------------------------------------------------------------------------------------------------------
Park Place Entertainment Common 700690100 211,750 28,000
- ------------------------------------------------------------------------------------------------------------------------------------
Payless ShoeSource, Inc. Common 704379106 1,313,160 28,240
- ------------------------------------------------------------------------------------------------------------------------------------
Penn Virginia Corporation Common 707882106 2,959,720 168,525
- ------------------------------------------------------------------------------------------------------------------------------------
Pfizer Co. Common 717081103 407,231 2,935
- ------------------------------------------------------------------------------------------------------------------------------------
Philip Morris Common 718154107 1,785,766 50,750
- ------------------------------------------------------------------------------------------------------------------------------------
Plum Creek Timber, L.P. * Common 729237107 1,722,825 60,450
- ------------------------------------------------------------------------------------------------------------------------------------
Premark Int'l Inc. Common 740459102 200,919 6,100
- ------------------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc. 10.50% Sr. Pfd 741570204 7,051,768 295,362
- ------------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Common 742718109 372,162 3,800
- ------------------------------------------------------------------------------------------------------------------------------------
Provident Bankshares Common 743859100 738,162 28,255
- ------------------------------------------------------------------------------------------------------------------------------------
Public Storage Inc.* Common 74460D109 451,500 18,060
- ------------------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 19,662,273 461,285 452,785 8,500
- ------------------------------------------------------------------------------------------------------------------------------------
Rite Aid Common 767754104 1,888,750 75,550
- ------------------------------------------------------------------------------------------------------------------------------------
Ross Stores Inc Common 778296103 2,681,325 61,200
- ------------------------------------------------------------------------------------------------------------------------------------
Safeway Inc Com New Common 786514208 4,405,178 85,850
- ------------------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 43,690,998 1,680,423 1,660,423 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 8,310,810 478,320
- ------------------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. Common 812387108 4,566,197 101,050
- ------------------------------------------------------------------------------------------------------------------------------------
Shoney's Inc Conv 0.000% Due 04-11-04 CnvtBl 825039AC4 667,500 3,000 (4)
- ------------------------------------------------------------------------------------------------------------------------------------
Shoney's, Inc. Common 825039100 6,104,000 2,441,600
- ------------------------------------------------------------------------------------------------------------------------------------
Shoney's/TPI Enterprises 8.250% Due 07-15-02 CnvtBl 872623AA1 803,250 1,400 (5)
- ------------------------------------------------------------------------------------------------------------------------------------
Southdown Inc. Common 841297104 39,495,370 735,653 729,653 6,000
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Airlines Common 844741108 2,982,589 98,598
- ------------------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs, Inc. Common 860342104 9,254,520 1,203,840 1,185,840 18,000
- ------------------------------------------------------------------------------------------------------------------------------------
Storage USA, Inc. * Common 861907103 1,258,147 44,340
- ------------------------------------------------------------------------------------------------------------------------------------
Sun Communities Inc.* Common 866674104 1,003,300 31,600
- ------------------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 48,042,324 852,192 844,192 8,000
- ------------------------------------------------------------------------------------------------------------------------------------
Teppco Partners LP UT Ltd Part Common 872384102 429,250 17,000
- ------------------------------------------------------------------------------------------------------------------------------------
Toys R Us Common 892335100 1,329,310 70,661
- ------------------------------------------------------------------------------------------------------------------------------------
Travel Ports of America Common 894167105 51,388 14,176
- ------------------------------------------------------------------------------------------------------------------------------------
Trenwick Group Common 895290104 29,953,912 1,065,028 1,053,528 11,500
- ------------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. Common 907818108 3,273,581 61,260
- ------------------------------------------------------------------------------------------------------------------------------------
UNUM Corp. Common 903192102 3,221,408 67,730
- ------------------------------------------------------------------------------------------------------------------------------------
US Airways Group Common 911905107 2,106,015 43,145
- ------------------------------------------------------------------------------------------------------------------------------------
Wabash National Corp Common 929566107 326,837 28,115
- ------------------------------------------------------------------------------------------------------------------------------------
Walgreen Co. Common 931422109 5,539,825 196,100
- ------------------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores Common 931142103 49,927,736 541,589
- ------------------------------------------------------------------------------------------------------------------------------------
Weatherford International Common 947074100 24,492,553 937,514 926,114 11,400
- ------------------------------------------------------------------------------------------------------------------------------------
Winston Hotels Inc Cum Pfd 9.2 Pfd 97563A201 383,750 20,000
- ------------------------------------------------------------------------------------------------------------------------------------
Young Broadcasting Class A Common 987434107 11,016,156 241,450
- ------------------------------------------------------------------------------------------------------------------------------------
1,156,337,845
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Converts to 34,650 shares
(2) Converts to 34,397 shares
(3) Converts to 79,352 shares
(4) Converts to 88,047 shares
(5) Converts to 70,711 shares
<PAGE> 4
THE FOLLOWING SECURITIES ARE ADDITIONS TO THOSE ALREADY LISTED, BUT ARE BEING
REPORTED SEPARATELY BECAUSE NEWSOUTH MANAGES THEM THROUGH A SMITH BARNEY
FIDUCIARY SERVICES PROGRAM WHEREBY ACCOUNTS ARE PLACED WITH US FOR MANAGEMENT.
ALTHOUGH DISCRETIONARY RESPONSIBILITY FOR THE ACCOUNTS IS WITH US, SB RETAINS
THE RESPONSIBILITY FOR REPORTING THESE SECURITIES ON THEIR 13F IF THE SIZE OF A
PARTICULAR HOLDING TRIGGERS 13F FILING REQUIREMENTS.
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5
CUSIP Fair Market Shares of
Name of Issuer Title of Class Number Value Principal Amount
==============================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alltel Corp. Common 020039103 2,309,339 37,023
- -----------------------------------------------------------------------------------------------------------------------------
AGCO Corporation Common 001084102 514,968 78,465
- -----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 1,622,396 76,347
- -----------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Inc. Common 042735100 1,469,850 97,990
- -----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 1,337,961 36,406
- -----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 1,228,330 50,135
- -----------------------------------------------------------------------------------------------------------------------------
Buckeye Technologies Corp. Common 11815H104 2,792,076 199,434
- -----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 1,901,207 131,680
- -----------------------------------------------------------------------------------------------------------------------------
Cedar Fair L.P. Common 150185106 191,456 7,620
- -----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 3,059,658 99,098
- -----------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 3,044,199 100,425
- -----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 1,926,486 86,099
- -----------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 343,591 5,995
- -----------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 299,499 10,025
- -----------------------------------------------------------------------------------------------------------------------------
Kaydon Common 486587108 2,471,890 85,420
- -----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 1,250,107 97,564
- -----------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 1,671,417 66,030
- -----------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 1,434,677 22,615
- -----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 2,743,491 67,950
- -----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 1,240,224 140,725
- -----------------------------------------------------------------------------------------------------------------------------
Old Republic Int'l Common 680223104 967,458 53,010
- -----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 1,938,199 45,470
- -----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 2,565,186 98,661
- -----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 1,526,506 87,855
- -----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 2,176,512 40,540
- -----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Svcs Inc. Common 860342104 983,833 127,970
- -----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 3,001,158 53,235
- -----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 1,914,900 68,084
- -----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra Inc. Common 947071106 1,676,074 64,155
- -----------------------------------------------------------------------------------------------------------------------------
49,602,648
- -----------------------------------------------------------------------------------------------------------------------------
Sole discretion and voting authority are applicable
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
THE FOLLOWING SECURITIES ARE ADDITIONS TO THOSE ALREADY LISTED, BUT ARE BEING
REPORTED SEPARATELY BECAUSE NEWSOUTH MANAGES THEM THROUGH A MORGAN, KEEGAN
PROGRAM WHEREBY ACCOUNTS ARE PLACED WITH US FOR MANAGEMENT. ALTHOUGH
DISCRETIONARY RESPONSIBILITY FOR THE ACCOUNTS IS WITH US, MORGAN, KEEGAN RETAINS
THE RESPONSIBILITY OF REPORTING THESE SECURITIES ON THEIR 13F IF THE SIZE OF A
PARTICULAR HOLDING TRIGGERS 13F FILING REQUIREMENTS.
<TABLE>
<CAPTION>
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5
CUSIP Fair Market Shares of
Name of Issuer Title of Class Number Value Principal Amount
=============================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alltel Corp. Common 020039103 891,963 14,300
- -----------------------------------------------------------------------------------------------------------------------------
Alberto Culver Co. Cl A Common 013068200 377,506 17,765
- -----------------------------------------------------------------------------------------------------------------------------
AGCO Corp. Common 001084102 114,319 17,420
- -----------------------------------------------------------------------------------------------------------------------------
Arrow Electronics Common 042735100 562,125 37,475
- -----------------------------------------------------------------------------------------------------------------------------
Avnet, Inc. Common 053807103 333,874 9,085
- -----------------------------------------------------------------------------------------------------------------------------
Bell Industries Common 078107109 2,075 200
- -----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp Common 084423102 215,968 8,815
- -----------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp Common 11815H104 1,038,520 74,180
- -----------------------------------------------------------------------------------------------------------------------------
Capital Automotive REIT* Common 139733109 662,794 53,290
- -----------------------------------------------------------------------------------------------------------------------------
CPI Corp. Common 125902106 719,423 32,153
- -----------------------------------------------------------------------------------------------------------------------------
Cabot Oil & Gas Common 127097103 602,838 41,755
- -----------------------------------------------------------------------------------------------------------------------------
Cedar Fair, L.P. * Common 150185106 251,250 10,000
- -----------------------------------------------------------------------------------------------------------------------------
Conseco Inc Common 208464107 887,348 28,740
- -----------------------------------------------------------------------------------------------------------------------------
Consolidated Stores Corp Common 210149100 1,015,317 33,495
- -----------------------------------------------------------------------------------------------------------------------------
Equity Inns, Inc. Common 294703103 7,140 840
- -----------------------------------------------------------------------------------------------------------------------------
Excel Legacy Corp* Common 300665106 4,331 1,260
- -----------------------------------------------------------------------------------------------------------------------------
Freddie Mac Common 313400301 11,463 200
- -----------------------------------------------------------------------------------------------------------------------------
J Ray McDermott S A Common P64658100 525,800 17,600
- -----------------------------------------------------------------------------------------------------------------------------
Journal Register Co. Common 481138105 8,400 700
- -----------------------------------------------------------------------------------------------------------------------------
Kaydon Corp Common 486587108 864,508 29,875
- -----------------------------------------------------------------------------------------------------------------------------
M A Hanna Co. Common 410522106 399,122 31,151
- -----------------------------------------------------------------------------------------------------------------------------
Media One Group, Inc. Common 58440J104 867,508 13,675
- -----------------------------------------------------------------------------------------------------------------------------
Metris Companies Common 591598107 960,642 23,793
- -----------------------------------------------------------------------------------------------------------------------------
McDermott International Inc. Common 580037109 125,423 4,955
- -----------------------------------------------------------------------------------------------------------------------------
New Plan Excel Realty Trust* Common 648053106 19,802 1,032
- -----------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp Common 675746101 453,095 51,415
- -----------------------------------------------------------------------------------------------------------------------------
ReliaStar Financial Corp. Common 75952U103 731,445 17,160
- -----------------------------------------------------------------------------------------------------------------------------
Saks, Inc. Common 79377w108 862,706 33,181
- -----------------------------------------------------------------------------------------------------------------------------
Scott Technologies Inc Common 810022301 311,621 17,935
- -----------------------------------------------------------------------------------------------------------------------------
Southdown Common 841297104 890,407 16,585
- -----------------------------------------------------------------------------------------------------------------------------
Stewart & Stevenson Services Common 860342104 188,574 24,530
- -----------------------------------------------------------------------------------------------------------------------------
Storage USA Inc. Common 861907103 14,471 510
- -----------------------------------------------------------------------------------------------------------------------------
Telephone & Data Common 879433100 1,137,648 20,180
- -----------------------------------------------------------------------------------------------------------------------------
Trenwick Group Inc. Common 895290104 619,594 22,030
- -----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. Common 947071106 418,836 16,032
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
17,097,854
- -----------------------------------------------------------------------------------------------------------------------------
Sole discretion and voting authority are applicable
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
