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(LONGLEAF LOGO)
LONGLEAF PARTNERS
INTERNATIONAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
at September 30, 1998
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MANAGED BY:
SOUTHEASTERN ASSET MANAGEMENT, INC.
Memphis, TN
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INTERNATIONAL FUND - PORTFOLIO INVESTMENTS
AT SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
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<S> <C> <C> <C> <C> <C>
Common Stock 96.5%
Agriculture 5.2%
53,000 * Agribrands International, Inc. (United
States)...................................... $ 1,252,125
Beverages 4.4%
37,000 The Seagram Company Ltd. (Canada).............. 1,061,437
Broadcasting 4.8%
32,000 Nippon Broadcasting System(Japan).............. 1,137,820
Cable 4.8%
69,000 Shaw Communications, Inc. - Class B (Canada)... 1,155,750
Healthcare 4.9%
1,513,000 Haw Par Corporation Limited (Singapore)........ 1,167,508
Multi-Industry 19.8%
6,140,000 Brierley Investments Limited (New Zealand)..... 1,106,306
26,000 Philips Electronics N.V. (Netherlands)......... 1,387,750
2,610,000 Swire Pacific Limited (Hong Kong).............. 1,229,464
285,000 Wassall PLC (Great Britain).................... 1,009,900
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4,733,420
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Natural Resources 17.4%
120,000 * Anderson Exploration Limited (Canada).......... 1,258,026
700,000 * Gulf Canada Resources Limited (Canada)......... 2,887,500
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4,145,526
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Property & Casualty Insurance 17.3%
67,000 The Chiyoda Fire and Marine Insurance Company,
Ltd. (Japan)................................. 197,377
335,000 The Dai-Tokyo Fire and Marine Insurance
Company, Ltd. (Japan)........................ 954,893
311,000 The Nippon Fire & Marine Insurance Company,
Ltd. (Japan)................................. 993,866
330,000 The Nissan Fire & Marine Insurance Company,
Ltd. (Japan)................................. 889,730
295,000 The Yasuda Fire & Marine Insurance Company,
Ltd. (Japan)................................. 1,083,603
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4,119,469
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Restaurants 4.5%
138,000 Kentucky Fried Chicken Japan (Japan)........... 1,084,778
Transportation 13.4%
102,000 Canadian Pacific Limited (Canada).............. 2,110,125
24,000 * FDX Corporation (United States)................ 1,083,000
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3,193,125
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TOTAL COMMON STOCKS (COST $25,359,731)..................... 23,050,958
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</TABLE>
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INTERNATIONAL FUND - PORTFOLIO INVESTMENTS
AT SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
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<S> <C> <C> <C> <C> <C>
Short-Term Obligations 7.0%
Federal National Mortgage Association Discount Note, 5.22% due
10-1-98........................................................... $ 999,857
Repurchase Agreement with State Street Bank, 4.75% due 10-1-98...... 676,000
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1,675,857
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TOTAL INVESTMENTS (COST $27,035,588)(A)...................... 103.5% 24,726,815
OTHER ASSETS AND LIABILITIES, NET............................ (3.5) (856,468)
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NET ASSETS................................................... 100.0% $ 23,870,347
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NET ASSET VALUE PER SHARE........................................... $8.81
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</TABLE>
* Non-income producing security
(a) Aggregate cost for Federal income tax purposes.
OPEN FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
Currency Currency Sold and Currency Unrealized
Units Sold Settlement Date Market Value Gain (Loss)
- ----------- ---------------------------------- ------------ -----------
<C> <S> <C> <C>
1,802,146 Canadian Dollars 12-29-98......... $ 1,180,574 $ 4,753
2,619,162 Hong Kong Dollars 8-18-99......... 325,502 (7,446)
878,853,663 Japanese Yen 8-18-99.............. 6,740,535 (404,124)
2,362,725 Singapore Dollars 8-18-99......... 1,409,306 (79,242)
2,462,631 New Zealand Dollars 9-3-99........ 1,227,836 5,263
638,132 British Pound 9-8-99.............. 1,066,660 (17,060)
7,212,383 Hong Kong Dollars 8-20-01......... 810,478 (69,229)
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$12,760,891 $(567,085)
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</TABLE>
COUNTRY ALLOCATION
<TABLE>
<S> <C>
Canada.................................... 35.5%
Japan..................................... 24.9
United States............................. 15.5
Netherlands............................... 5.8
Hong Kong................................. 4.8
New Zealand............................... 4.7
Singapore................................. 4.6
United Kingdom............................ 4.2
-----
100.0%
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</TABLE>
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Longleaf Partners International Fund
c/o NFDS
P.O. Box 419929
Kansas City, MO 64141-6929
Fund Information Requests
(800) 445-9469
Shareholder Account Inquiries
(800) 488-4191
