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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 13F
Form 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: December 31, 1998
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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: Discovery Management, Ltd.
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Address: 300 Cresent Court, Suite 750
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Dallas, Texas 75201
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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 of Behalf of Reporting Manager:
Name: Stephen J. Summers
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Title: CEO
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Phone: 214-880-4602
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Signature, Place, and Date of Signing:
/s/ Stephen J. Summers Dallas, TX 2/12/1999
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[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.)
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[ ] 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).)
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Form 13F SUMMARY PAGE
Report Summary:
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<S> <C>
Number of Other Included Managers: 0
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Form 13F Information Table Entry Total: 88
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Form 13F Information Table Value Total: $282,136,617
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(thousands)
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List of Other Included Managers: None
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<TABLE>
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Item 1: Fair Market Shares/ Invest Disc. Managers Voting Authority
Name of Issuer Class Cusip Value Princ. Sole SH/ SH/ Sole Shared None
Amount def other
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Action Performance Co. Common 004933107 $5,306,250.00 150,000 Sole 150,000
Allstate Corp. Common 020002101 $3,194,248.50 82,700 Sole 82,700
Alpharma Inc. Common 020813101 $6,685,104.03 189,310 Sole 189,310
Amgen Common 031162100 $6,648,115.54 63,580 Sole 63,580
Apple Computer Common 037833100 $3,848,172.00 94,000 Sole 94,000
AptarGroup Common 038336103 $1,686,866.93 60,100 Sole 60,110
Armco Inc. Common 042170100 $1,590,881.50 363,630 Sole 363,630
Atlas Air Cargo Common 049164106 $5,779,577.80 118,100 Sole 118,100
Aurora Foods Common 05164B106 $1,746,912.21 88,170 Sole 88,170
BellSouth Corp. Common 079860102 $2,084,775.00 41,800 Sole 41,800
Blyth Industries Common 09643P108 $1,730,937.50 55,390 Sole 55,390
Carlisle Cos. Common 142339100 $4,735,561.25 91,730 Sole 91,730
Centex Corp. Common 152312104 $5,496,784.74 121,980 Sole 121,980
Century Tel. Enterpr Common 156686107 $1,950,750.00 28,900 Sole 28,900
Champion Enterprises Common 158496109 $4,719,450.00 172,400 Sole 172,400
Cordant Technologies Common 218412104 $1,444,500.00 38,520 Sole 38,520
Countrywide Credit Common 222372104 $3,916,169.64 78,030 Sole 78,030
Crane Co. Common 224399105 $1,708,942.68 56,610 Sole 56,610
D R Horton Common 23331A109 $2,075,060.00 90,220 Sole 90,220
DSP Group Common 23332B106 $5,185,350.00 248,400 Sole 248,400
DST Systems, Inc. Common 233326107 $1,903,621.68 33,360 Sole 33,360
Delta Air Lines Common 247361108 $5,292,300.00 101,775 Sole 101,775
Deluxe Corp. Common 248019101 $3,678,237.80 100,600 Sole 100,600
Department 56 Common 249509100 $1,807,907.19 48,130 Sole 48,130
ESC Medical Systems Common M40868107 $1,587,390.00 151,180 Sole 151,180
Engelhard Corp. Common 292845104 $5,049,720.00 258,960 Sole 258,960
Equitable Resources Common 294549100 $1,668,280.00 57,280 Sole 57,280
Everest Reinsurance Common 299808105 $4,793,267.80 123,100 Sole 123,100
Fleetwood Enterprise Common 339099103 $1,811,170.00 52,120 Sole 52,120
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Fluor Corp. Common 343861100 $3,736,605.77 87,790 Sole 87,790
Ford Motor Common 345370100 $5,747,902.72 97,940 Sole 97,940
Galileo International Common 363547100 $1,774,800.00 40,800 Sole 40,800
General Dynamics Common 369550108 $5,119,135.00 87,320 Sole 87,320
Hadco Common 404681108 $4,343,500.00 124,100 Sole 124,100
Hollywood Entertainment Common 436141105 $1,558,700.00 57,200 Sole 57,200
Ingersoll-Rand Common 456866102 $5,660,253.42 120,590 Sole 120,590
Interim Services Common 45868P100 $4,943,812.50 211,500 Sole 211,500
Intl Home Foods,Inc. Common 459655106 $1,555,706.25 92,190 Sole 92,190
Keebler Foods Common 487256109 $3,756,856.25 99,850 Sole 99,850
Kellstrom Industries Common 488035106 $5,290,000.00 184,000 Sole 184,000
Knight-Ridder Common 499040103 $1,587,431.25 31,050 Sole 31,050
Lafarge Corp. Common 505862102 $5,305,500.00 131,000 Sole 131,000
Landstar System Common 515098101 $1,911,175.00 46,900 Sole 46,900
Level One Common 527295109 $2,169,050.00 61,100 Sole 61,100
Lexmark Intl Group Common 529771107 $6,889,275.00 68,550 Sole 68,550
Lincare Holdings Common 532791100 $5,742,503.91 141,570 Sole 141,570
Loews Corp. Common 540424108 $1,616,212.50 16,450 Sole 16,450
Maytag Corp. Common 578592107 $2,041,800.00 32,800 Sole 32,800
Media Arts Group Common 58439C102 $4,054,362.90 288,300 Sole 288,300
Metris Corp. Common 591598107 $6,470,251.80 128,600 Sole 128,600
Michael Foods Common 594079105 $1,988,400.00 66,280 Sole 66,280
Micro Warehouse Inc. Common 59501B105 $2,721,946.50 80,500 Sole 80,500
Mylan Labs. Common 628530107 $1,501,290.00 47,660 Sole 47,660
Neomagic Corp. Common 640497103 $1,919,122.50 86,740 Sole 86,740
Novellus Sys. Common 670008101 $1,722,600.00 34,800 Sole 34,800
Ocular Sciences Common 675744106 $1,426,577.50 53,330 Sole 53,330
Old Republic Intl Corp Common 680223104 $1,640,250.00 72,900 Sole 72,900
Pentair Common 709631105 $1,656,200.80 41,600 Sole 41,600
Periphonics Common 714005105 $1,967,517.72 149,190 Sole 149,190
Policy Mgmt. Sys. Common 731108106 $1,734,675.00 34,350 Sole 34,350
Pomeroy Computer
Resources Common 731822102 $4,246,650.00 188,740 Sole 188,740
Premark Int'l Common 740459102 $1,666,155.00 48,120 Sole 48,120
Qualcomm Inc Common 747525103 $1,466,826.03 28,310 Sole 28,310
RCM Technologies Common 749360400 $1,775,500.00 67,000 Sole 67,000
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Rollins Truck Leasing Common 775741101 $2,006,000.00 136,000 Sole 136,000
Ross Stores Common 778296103 $6,931,575.00 176,040 Sole 176,040
Ryan's Family Common 783519101 $1,877,782.50 151,740 Sole 151,740
Schulman (A.) Common 808194104 $1,883,330.88 83,010 Sole 83,010
Shopko Stores, Inc. Common 824911101 $4,683,262.50 140,850 Sole 140,850
Snyder Communications Common 832914105 $3,258,225.00 96,540 Sole 96,540
Solutia Common 834376105 $3,128,696.25 139,830 Sole 139,830
Staffmark Common 852389105 $1,799,621.25 80,430 Sole 80,430
Sterling Software Common 859547101 $1,792,382.49 66,230 Sole 66,230
Steve Madden Common 556269108 $981,070.00 115,420 Sole 115,420
Super Valu Stores Common 868536103 $5,400,640.00 192,880 Sole 192,880
Superior Telecom Common 868365107 $1,716,592.50 36,330 Sole 36,330
Synopsys Inc Common 871607107 $3,829,507.50 70,590 Sole 70,590
TJX Companies Common 872540109 $1,760,300.00 60,700 Sole 60,700
Teleflex Inc. Common 879369106 $1,815,875.00 39,800 Sole 39,800
Tesoro Petroleum Common 881609101 $1,228,262.50 101,300 Sole 101,300
Tommy Hilfiger Corp. Common G8915Z102 $4,842,000.00 80,700 Sole 80,700
Tricon Restaurants Common 895953107 $3,873,158.75 77,270 Sole 77,270
USG Corp. Common 903293405 $10,419,367.90 204,550 Sole 204,550
United Stationers Common 913004107 $1,534,000.00 59,000 Sole 59,000
United Technologies Common 913017109 $1,848,750.00 17,000 Sole 17,000
Universal Corp. Common 913456109 $4,534,988.75 129,110 Sole 129,110
V.F. Corp. Common 918204108 $1,633,125.00 34,840 Sole 34,840
Varlen Corp. Common 922248109 $1,523,195.84 66,045 Sole 66,045
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