UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 13F
Report for the Calendar Year or Quarter Ended: December 31, 1999
Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [ ] is a restatement.
[ ] adds new holdings entries.
Institutional Investment Manager Filing this Report:
Name: Stephen Watson
Address: 237 Park Avenue, Suite 801
New York, NY 10017
Form 13F File Number: 28-____________
The institutional investment manager filing this report and the person by whom
it is signed hereby represent that the person signing the report is authorized
to submit it, that all information contained herein is true, correct and
complete, and that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of this form. Person
Signing this Report on Behalf of Reporting Manager:
Name: Stephen Watson
Title: General Partner, Manager
Phone: (212) 692-3640
Signature, Place, and Date of Signing:
/s/ Stephen Watson New York, New York February 14, 2000
[Signature] [City, State] [Date]
Report Type (Check only one.):
[X] 13F HOLDINGS REPORT. (Check here if all holdings of this reporting
manager are reported in this report.)
[ ] 13F NOTICE. (Check here if no holdings reported are in this
report, and all holdings are reported by other
reporting manager(s).)
[ ] 13F COMBINATION REPORT. (Check here if a portion of the holdings for
this reporting manager are reported in this
report and a portion are reported by other
reporting manager(s).)
List of Other Managers Reporting for this Manager: None
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE ACT OF 1934.
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FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: Two*
Form 13F Information Table Entry Total: 174
Form 13F Information Table Value Total: $148,274
(thousands)
List of Other Included Managers:
No. Name
- --- ----
(1) Watson Asset Management, Inc.
(2) Watson Advisors LLC
* Since these entities are wholly owned and controlled by Mr. Watson they are
treated as a single entity for purposes of the Information Table.
Provide a numbered list of the name(s) and Form 13F file number(s) of all
institutional investment managers with respect to which this report is filed,
other than the manager filing this report. [If there are no entries in this
list, state "NONE" and omit the column headings and list entries.]
NONE
<PAGE>
<TABLE>
IN-
VEST-
MENT
DIS- OTHER VOTING
TITLE OF CUSIP MARKET SHARES OR SH PUT/ CRE- MANA- AUTHORITY
NAME OF ISSUER CLASS NUMBER VALUE PRN AMT PRN CALL TION GERS SOLE SHARED NONE
-------------- ----- ------ ----- ------- --- ---- ---- ---- ---- ------ ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ABAXIS INC. Common 002567105 3,100,000 400,000 SH Other (1) Sole
ALLIED PRODUCTS CORP Common 019411107 1,027,425 288,400 SH Other (1) Sole
APPLIED EXTRUSION TECH. Common 038196101 637,500 100,000 SH Other (1) Sole
APPLIED INNOVATION INC. Common 037916103 241,875 30,000 SH Other (1) Sole
ALLIED DEVICES CORP Common 019120104 228,157 149,000 SH Other (1) Sole
ADVANTAGE LEARNING SYS, INC Common 00757K100 927,300 84,300 SH Other (1) Sole
AMERICAN SHARED HOSP SVCS Common 029595105 637,500 150,000 SH Other (1) Sole
A O SMITH CORP Common 831865209 210,000 9,600 SH Other (1) Sole
AREMISSOFT CORP DEL Common 040026106 615,000 20,000 SH Other (1) Sole
AEROFLEX INC Common 007768104 950,000 100,000 SH Other (1) Sole
ASTEC INDUSTRIES INC Common 046224101 1,229,376 70,000 SH Other (1) Sole
AFTERMATH TECHNOLOGY CORP Common 008318107 2,411,626 218,000 SH Other (1) Sole
AMERICAN TECH CORPDEL Common 030145205 618,751 100,000 SH Other (1) Sole
AULT INC Common 051503100 275,625 35,000 SH Other (1) Sole
BARRINGER TECH INC NEW Common 068509603 1,212,500 200,000 SH Other (1) Sole
BUDGET GROUP INC CL A Common 119003101 390,938 45,000 SH Other (1) Sole
DE AVIONICS INC Common 073302101 1,970,314 242,500 SH Other (1) Sole
BEVERLY ENTERPRISES INC Common 087851309 576,876 130,000 SH Other (1) Sole
BOUNDLESS CORP NEW Common 101706208 886,788 116,300 SH Other (1) Sole
BONTON STORES INC Common 09776J101 375,000 100,000 SH Other (1) Sole
BUILDING ONE SERVICES CORP Common 120114103 1,178,000 124,000 SH Other (1) Sole
BRADLEES INC NEW Common 104499207 1,120,000 140,000 SH Other (1) Sole
BIO VASCULAR INC Common 090923103 675,626 235,000 SH Other (1) Sole
BLUEGREEN CORP Common 096231105 962,501 220,000 SH Other (1) Sole
CAMERON ASHLEY BLDG PRDTS Common 133290106 1,267,500 120,000 SH Other (1) Sole
CSK AUTO CORP Common 125965103 394,500 24,000 SH Other (1) Sole
MEXICAN RESTAURANTS INC Common 59283R104 362,500 100,000 SH Other (1) Sole
CCOR ELECTRONICS INC Common 125010108 546,000 7,000 SH Other (1) Sole
CFM TECHNOLOGIES INC Common 12525K106 1,017,500 110,000 SH Other (1) Sole
BERNARD CHAUS INC NEW Common 162510200 578,126 250,000 SH Other (1) Sole
PILGRIMS PRIDE CORP Common 72142R108 337,500 40,000 SH Other (1) Sole
CLOSURE MEDICAL CORP Common 189093107 641,739 47,100 SH Other (1) Sole
CANDELA LASER CORP Common 136907102 1,091,350 58,400 SH Other (1) Sole
COMDIAL CORP Common 200332302 592,500 60,000 SH Other (1) Sole
COLORADO MEDTECH INC Common 19652U104 160,000 20,000 SH Other (1) Sole
COHOERENT INC W/RTS TO PUR Common 192479103 2,587,500 100,000 SH Other (1) Sole
CERADYNE INCCALIF Common 156710105 310,625 70,000 SH Other (1) Sole
C3 INCN.C. Common 22942P109 125,000 20,000 SH Other (1) Sole
CUBIC CORP Common 229669106 324,376 15,000 SH Other (1) Sole
COVENTRY HEALTH CARE INC Common 222862104 508,751 74,000 SH Other (1) Sole
CYTYC CORP Common 232946103 746,456 12,300 SH Other (1) Sole
DISCOUNT AUTO PARTS INC Common 254642101 1,903,126 105,000 SH Other (1) Sole
DBT ONLINE INC Common 233044106 246,250 10,000 SH Other (1) Sole
DIGITAL LIGHTWAVE INC Common 253855100 2,390,000 40,000 SH Other (1) Sole
ADVANTICA RESTAURANT GRP Common 00758B109 502,735 292,500 SH Other (1) Sole
DELTEK SYSTMS INC Common 24785A108 1,046,563 85,000 SH Other (1) Sole
GTS DURATEK INC Common 36237J107 1,170,250 151,000 SH Other (1) Sole
DOLLAR THRIFTY AUTO. GRP Common 256743105 2,424,000 101,000 SH Other (1) Sole
DALTILE INTERNATIONAL INC Common 23426R108 2,387,381 243,300 SH Other (1) Sole
DTM CORP Common 23333L103 179,726 110,600 SH Other (1) Sole
DAISYTEK INTERNATIONAL CORP Common 234053103 3,290,000 140,000 SH Other (1) Sole
HEARX LTD. Common 422360305 928,701 200,800 SH Other (1) Sole
ECCS INC Common 26825H100 281,250 25,000 SH Other (1) Sole
EGAMES INC Common 775810104 227,500 70,000 SH Other (1) Sole
8X8 INC Common 282912104 147,188 30,000 SH Other (1) Sole
ELCOM INTERNATIONAL INC Common 284434107 288,750 10,000 SH Other (1) Sole
ELTRAX SYSTEMS INC Common 290475104 1,181,250 175,000 SH Other (1) Sole
EQUITY MARKETING INC Common 294724109 1,495,901 109,600 SH Other (1) Sole
EMCORE GROUP Common 290846104 853,126 25,000 SH Other (1) Sole
ENCAD INC Common 292503109 1,996,900 420,400 SH Other (1) Sole
EAGLE PACIFIC INDUSTRIES INC Common 269719100 875,000 200,000 SH Other (1) Sole
EUROTECH LTD Common 298796103 112,500 50,000 SH Other (1) Sole
EXABYTE CORP Common 300615101 793,750 100,000 SH Other (1) Sole
EXCO RESOURCES INC NEW Common 269279204 1,266,575 174,700 SH Other (1) Sole
FTI CONSULTING INC Common 302941109 709,500 141,900 SH Other (1) Sole
OSICOM TECH. INC NEW Common 688271501 1,876,875 39,000 SH Other (1) Sole
FINISH LINE INCCL A Common 317923100 84,282 15,500 SH Other (1) Sole
COMFORT SYSTEMS USA INC Common 199908104 371,876 50,000 SH Other (1) Sole
FRIEDMANS INCCL A Common 358438109 198,138 26,200 SH Other (1) Sole
FOSTER WHEELER CORP Common 350244109 651,563 75,000 SH Other (1) Sole
GADZOOKS INC Common 362553109 2,271,095 237,500 SH Other (1) Sole
GAYLORD CONTAINER CORP CLA Common 368145108 1,730,313 245,000 SH Other (1) Sole
GENERAL DATACOMM INDUSTR. Common 369487103 193,126 30,000 SH Other (1) Sole
GUILFORD MILLS INC Common 401794102 69,376 10,000 SH Other (1) Sole
GRIFFON CORP Common 398433102 187,425 25,200 SH Other (1) Sole
GOOD GUYS INC Common 382091106 270,000 30,000 SH Other (1) Sole
GENERAL BEARING CORP. Common 369147103 354,469 59,700 SH Other (1) Sole
GSI LUMONICS INC Common 362294102 548,438 65,000 SH Other (1) Sole
GUEST SUPPLY INC Common 401630108 1,897,500 132,000 SH Other (1) Sole
GENTNER COMMUNICATNS CORP Common 37245J105 585,000 40,000 SH Other (1) Sole
HAUPPAGUE DIGITAL INC Common 419131107 406,250 20,000 SH Other (1) Sole
HUNTCO INC CL A Common 445661101 1,544,419 504,300 SH Other (1) Sole
HAGGAR CORP Common 405173105 457,500 40,000 SH Other (1) Sole
HEALTH MANAGEMENT STMS INC Common 42219M100 637,501 100,000 SH Other (1) Sole
HOME PRODUCTS INT'L Common 437305105 213,750 20,000 SH Other (1) Sole
HERLEY INDUSTRIES INC Common 427398102 226,876 15,000 SH Other (1) Sole
HEALTH RISK MANAGEMENT INC Common 421935107 180,000 30,000 SH Other (1) Sole
MARINEMAX INC Common 567908108 1,198,126 127,800 SH Other (1) Sole
INTL FIBERCOM INC Common 45950T101 390,626 50,000 SH Other (1) Sole
IFLOW CORP NEW Common 449520105 1,103,600 275,900 SH Other (1) Sole
IMPERIAL SUGAR CO NEW Common 452835101 506,250 150,000 SH Other (1) Sole
II VI INC Common 902104108 430,500 21,000 SH Other (1) Sole
INTERMAGNETICS GENL CORP Common 458771102 948,751 110,000 SH Other (1) Sole
INDUSTRI MATEMIK INTL CORP Common 455792101 222,500 40,000 SH Other (1) Sole
IN FOCUS SYSTEMS INC Common 452919103 823,501 36,000 SH Other (1) Sole
INTERVOICEBRITE INC Common 461142101 2,812,501 120,000 SH Other (1) Sole
INVISION TECHNOLOGIES INC Common 461851107 1,105,001 260,000 SH Other (1) Sole
INTERPOOL INC Common 46062R108 393,089 53,300 SH Other (1) Sole
ITC DELTACOM INC Common 45031T104 756,788 27,900 SH Other (1) Sole
ITEQ INC Common 450430103 137,500 200,000 SH Other (1) Sole
IT GROUP INC Common 465266104 362,500 40,000 SH Other (1) Sole
JACKPOT ENTERPRISES INC Common 455392107 651,626 80,200 SH Other (1) Sole
KEITHLEY INSTRUMENTSINC Common 487584104 2,807,460 136,640 SH Other (1) Sole
KERAVISION INC Common 492061106 433,612 74,600 SH Other (1) Sole
KEYSTONE CONSOLIDATED INDS Common 493422109 587,500 100,000 SH Other (1) Sole
KENDLE INTERNATIONL INC Common 48880L107 1,012,501 100,000 SH Other (1) Sole
LCAVISION INC NEW Common 501803209 221,876 50,000 SH Other (1) Sole
LCC INTERNATIONAL INC CL A Common 501810105 560,626 30,000 SH Other (1) Sole
LANCE INC Common 514606102 486,875 47,500 SH Other (1) Sole
LASER PACIFIC MEDIA CORP Common 517923108 531,250 50,000 SH Other (1) Sole
LANIER WORLDWIDE INC Common 51589L105 687,500 200,000 SH Other (1) Sole
LUFKIN INDUSTRIES INC Common 549764108 612,425 37,400 SH Other (1) Sole
MANAUGHTON APPAREL GR. INC Common 582524104 1,462,500 200,000 SH Other (1) Sole
MANUGISTICS GROUP INC Common 565011103 1,550,000 50,000 SH Other (1) Sole
MATRIA HEALTHCARE INC Common 576817100 1,237,501 300,000 SH Other (1) Sole
MERIX CORP Common 590049102 546,250 47,500 SH Other (1) Sole
MIKOHN GAMING CORP Common 59862K108 1,135,625 230,000 SH Other (1) Sole
MUELLER INDUSTRIES INC Common 624756102 718,750 20,000 SH Other (1) Sole
MINIMED INDUSTRIES INC Common 60365K108 1,154,001 16,000 SH Other (1) Sole
MATERIAL SCIENCES CORP Common 576674105 2,149,563 211,000 SH Other (1) Sole
MISONIX INC Common 604871103 108,751 20,000 SH Other (1) Sole
MEASUREMENT SPECIALTIES INC Common 583421102 745,088 35,800 SH Other (1) Sole
METAL MANAGEMENT INC Common 591097100 1,068,750 300,000 SH Other (1) Sole
MAXTOR CORP (NEW) Common 577729205 346,876 50,000 SH Other (1) Sole
MYPOINTS.COM INC Common 62855T102 902,750 11,500 SH Other (1) Sole
NATURES SUNSHINE PRODS INC Common 639027101 136,000 17,000 SH Other (1) Sole
NBTY INC Common 628782104 1,368,750 120,000 SH Other (1) Sole
NEW ENGLAND BUS. SVC. INC. Common 643872104 235,000 10,000 SH Other (1) Sole
NATIONAL ENVIRONMENTAL SVC Common 635838105 191,364 72,900 SH Other (1) Sole
NANOGEN INC Common 630075109 1,540,000 70,000 SH Other (1) Sole
NOODLE KIDOODLE INC Common 655370104 185,001 40,000 SH Other (1) Sole
NOBLE INTERNATIONAL LTD Common 655053106 2,052,000 144,000 SH Other (1) Sole
NOVOSTE CORP Common 67010C100 442,188 25,000 SH Other (1) Sole
NETWORK PERIPHERALS INC Common 64121R100 444,375 10,000 SH Other (1) Sole
NEWPARK RESOURCES INC NEW Common 651718504 290,626 50,000 SH Other (1) Sole
NATIONAL STEEL CORPCL B Common 637844309 1,115,626 150,000 SH Other (1) Sole
NETSMART TECHNOLOGIES INC Common 64114W306 612,501 100,000 SH Other (1) Sole
NATIONAL R V HOLDINGS INC Common 637277104 1,202,500 65,000 SH Other (1) Sole
QUANEX CORP Common 747620102 1,271,876 50,000 SH Other (1) Sole
OWENS & MINOR INC HLDG CO Common 690732102 2,116,275 243,600 SH Other (1) Sole
OMI CORP NEW Common Y6476W104 1,400,000 700,000 SH Other (1) Sole
PAUL HARRIS STORES INC NEW Common 703555201 1,500,000 500,000 SH Other (1) Sole
PAXSON COMMUNICATION CP CL Common 704231109 575,000 50,000 SH Other (1) Sole
PERONNEL GROUP OF AMER INC Common 715338109 307,500 30,000 SH Other (1) Sole
PRIORITY HEALTH CARE CPCL B Common 74264T102 1,933,250 70,300 SH Other (1) Sole
PIER 1 IMPORTS INC Common 720279108 250,000 40,000 SH Other (1) Sole
CHILDRENS PLACE RETAIL STRS Common 168905107 506,250 30,000 SH Other (1) Sole
PLANAR SYSTEMS INC Common 726900103 998,963 156,700 SH Other (1) Sole
PRECISION OPTICS CORP MASS Common 740294103 585,000 30,000 SH Other (1) Sole
PROVANT INC Common 743724106 537,189 22,500 SH Other (1) Sole
PSS WORLD MEDICAL INC Common 69366A100 1,862,500 200,000 SH Other (1) Sole
PERSE TEHCNOLOGIES INC Common 584028104 400,000 50,000 SH Other (1) Sole
PROFORMANCE TECH INC Common 71376K102 914,250 53,000 SH Other (1) Sole
QUEST EDUCATION CORP Common 74835F102 1,217,201 143,200 SH Other (1) Sole
QUERYOBJECT SYS CORP Common 74833H100 88,126 30,000 SH Other (1) Sole
READ RITE CORP Common 755246105 500,000 100,000 SH Other (1) Sole
REHABCARE GROUP INC Common 759148109 1,106,782 53,500 SH Other (1) Sole
ROBINSON NUGENT INC Common 770810109 1,113,750 90,000 SH Other (1) Sole
ROHN INDUSTRIES INC Common 775381106 1,139,157 419,000 SH Other (1) Sole
ROSS SYSTEMS INC Common 778303107 72,188 30,000 SH Other (1) Sole
THE ROWE COMPANIES Common 779528108 632,813 75,000 SH Other (1) Sole
DISPATCH MANAGEMENT SVCS C Common 254927106 389,688 145,000 SH Other (1) Sole
SAGE INC Common 786632109 622,500 30,000 SH Other (1) Sole
SCHNITZER STEEL INDS. INC. Common 806882106 712,251 37,000 SH Other (1) Sole
SALTON INC Common 795757103 1,947,000 59,000 SH Other (1) Sole
STAGE STORES INC Common 85254C107 92,500 40,000 SH Other (1) Sole
SHAW GROUP INC Common 820280105 1,401,975 55,800 SH Other (1) Sole
SHERWOOD BRANDS INC CL A Common 82437L104 171,876 55,000 SH Other (1) Sole
SHONEYS INC Common 825039100 125,000 100,000 SH Other (1) Sole
ASSOCIATED MATERIALS INC Common 045709102 315,000 20,000 SH Other (1) Sole
SOMERA COMMUNICATIONS INC Common 834498101 573,750 45,000 SH Other (1) Sole
STEIN MART INC Common 858375108 1,424,719 250,500 SH Other (1) Sole
SUNRISE TECHNOLOGIES INC Common 86769L103 176,250 15,000 SH Other (1) Sole
SPLASH TECH HLDGS INC Common 848623104 862,500 100,000 SH Other (1) Sole
TOTAL $148,274,194
</TABLE>
