FORM 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: June 30,2004
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: CNA Financial Corporation
Address: CNA Plaza
Chicago,IL 60685
13F File Number: 28-346
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: Lynne Gugenheim
Title: Senior Vice President and Deputy General Counsel
Phone: (312) 822 4921
Signature, Place, and Date of Signing:
August 13,2004
Chicago, Illinois,60685
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE
ACT OF 1934
Report Type (Check only one.):
[ X ] 13F HOLDINGS REPORT.
[ ] 13F NOTICE.
[ ] 13F COMBINATION REPORT.
List of Other Managers Reporting for this Manager:
Assets reported herein are described as having shared
investment discretion among Loews Corporation, CNA
Financial Corporation,The Continental Corporation,
Continental Casualty Company and Continental Assurance
Company. Each of the foregoing entities specifically disclaims
ownership of any securities in this report which are not
beneficially owned by that entity and states that such
assets are solely under the control of its board of directors.
The characterization of shared investment discretion with parent
holding companies is made solely as a consequence of SEC
interpretations regarding control of the subsidiary through
share ownership. Loews Corporation owns approximately 90%
of the outstanding shares of CNA Financial Corporation;
CNA Financial Corporation owns 100% of the outstanding
shares of Continental Casualty Company and The Continental
Corporation; and Continental Casualty Company owns 100%
of the outstanding shares of Continental Assurance Company.
Loews Corporation will report separately on securities over which
it has investment discretion which are not part of this report.
FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 4
Form 13F Information Table Entry Total: 241
Form 13F Information Table Value Total: 1,170,223 (in thousands)
List of Other Included Managers:
No. 13F File Number Name
1 28-172 The Continental Corporation
2 28-217 Loews Corporation
3 28-386 Continental Assurance Company
4 28-387 Continental Casualty Company
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
3M CO COM 88579Y101 1,800 20,000 SH DEFINED 2,3 20,000
ACCENTURE LTD CL A G1150G111 698 25,400 SH DEFINED 2 25,400
ACTUANT CORPORATION CLA 00508XAA2 924 800,000 SH DEFINED 2,3 800,000
ACXIOM CORP NOTE 005125AB5 4,468 3,200,000 PRN DEFINED 2,3 175,322
AETNA INC COM 00817Y108 440 5,175 SH DEFINED 2 5,175
AFTERMARKET TECHNOLOGY COM 008318107 308 18,650 SH DEFINED 2 18,650
AGILENT TECH INC DBCV 00846UAB7 29,470 28,000,000 PRN DEFINED 2,3,4 869,025
AGILYSYS INC COM 00847J105 591 42,850 SH DEFINED 2 42,850
ALCAN ALUMINUM LTD COM 013716105 1,242 30,000 SH DEFINED 2,3 30,000
ALCON INC COMSHS H01301102 472 6,000 SH DEFINED 2,3 6,000
ALLIED WASTE INDUSTRIES SDCV 019589AD2 985 1,000,000 PRN DEFINED 2,3,4 48,948
ALLSTATE CORPORATION COM 020002101 1,424 30,600 SH DEFINED 2 30,600
AMBAC FINANCIAL GROUP INC COM 023139108 1,359 18,500 SH DEFINED 2 18,500
AMERICAN EXPRESS COM 025816109 2,312 45,000 SH DEFINED 2,3 45,000
AMERICAN GREET NOTE 026375AJ4 2,710 1,500,000 PRN DEFINED 2,3 107,920
AMERICAN HOME MORTGAGE COM 02660R107 3,925 151,375 SH DEFINED 2,4 151,375
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
AMERICAN INTL GROUP INC COM 026874107 2,994 42,000 SH DEFINED 2,3 42,000
AMERICAN NATIONAL INSURANCE COM 028591105 499 5,400 SH DEFINED 2 5,400
AMERICAN PHYSICIANS CAP COM 028884104 791 34,175 SH DEFINED 2 34,175
AMERISOURCE HEALTH NOTE 03071PAD4 3,014 2,560,000 PRN DEFINED 2,3 48,330
AMERUS GROUP CO COM 03072M108 561 13,550 SH DEFINED 2 13,550
AMGEN INC COM 031162100 2,183 40,000 SH DEFINED 2,3 40,000
AMGEN INC NOTE 031162AE0 11,025 15,000,000 PRN DEFINED 2,4 132,902
ANADARKO PETROLEUM CORP COM 032511107 7,618 130,000 SH DEFINED 2 130,000
ANGLOGOLD LTD NOTE 03512PAA7 1,893 2,000,000 PRN DEFINED 2,4 30,769
ANHEUSER BUSCH CO COM 035229103 1,874 34,700 SH DEFINED 2 34,700
ANIXTER INTERNATIONAL INC COM 035290105 607 17,850 SH DEFINED 2 17,850
ANTHEM INC COM 03674B104 2,418 27,000 SH DEFINED 2,3 27,000
AON CORP COM 037389103 4,224 148,350 SH DEFINED 2 148,350
APPLIED MATERIALS INC. COM 038222105 1,472 75,000 SH DEFINED 2,3 75,000
ARVINMERITOR INC COM 043353101 788 40,275 SH DEFINED 2 40,275
ASHLAND INC COM 044204105 1,780 33,700 SH DEFINED 2 33,700
ASSURANT INC COM 04621X108 459 17,400 SH DEFINED 2 17,400
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
ASSURED GUARANTY LTD COM G0585R106 1,119 66,000 SH DEFINED 2 66,000
AVAYA INC NOTE 053499AA7 3,169 5,000,000 PRN DEFINED 2,3,4 187,219
AXIS CAPITAL HOLDINGS LTD SHS G0692U109 1,330 47,500 SH DEFINED 2 47,500
THE BANCORP BANK COM 05969F104 266 15,000 SH DEFINED 2,4 15,000
BANK OF AMERICA CORP COM 060505104 1,186 14,021 SH DEFINED 2 14,021
BANK OF NEW YORK COM 064057102 1,212 41,100 SH DEFINED 2 41,100
BARRICK GOLD CORP COM 067901108 1,292 65,400 SH DEFINED 2 65,400
BEARINGPOINT INC COM 074002106 2,027 228,525 SH DEFINED 2 228,525
BEAZER HOMES USA INC COM 07556Q105 1,003 10,000 SH DEFINED 2 10,000
BEST BUY COMPANY INC COM 086516101 2,233 44,000 SH DEFINED 2,3 44,000
BOEING COMPANY COM 097023105 4,113 80,500 SH DEFINED 2 80,500
BOSTON SCIENTIFIC CORP COM 101137107 1,840 43,000 SH DEFINED 2,3 43,000
BOWNE & CO INC COM 103043105 646 40,775 SH DEFINED 2 40,775
BP PLC-SPONS ADR ADR 055622104 2,689 50,200 SH DEFINED 2 50,200
BRISTOL-MYERS SQUIBB CO COM 110122108 1,042 42,550 SH DEFINED 2 42,550
BROCADE COMMUNICATIONS NOTE 111621AB4 9,050 10,000,000 PRN DEFINED 2,3,4 228,571
BURLINGTON RESOURCES INC COM 122014103 2,931 81,000 SH DEFINED 2,3 81,000
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
CABLEVISION SYSTEMS CL A 12686C109 3,093 157,400 SH DEFINED 2 157,400
CABOT OIL & GAS CORP COM 127097103 5,499 130,000 SH DEFINED 2 130,000
CAPITAL LEASE FUNDING INC COM 140288101 1,560 150,000 SH DEFINED 2,4 150,000
CENDANT CORP DBCV 151313AN3 34,520 32,000,000 PRN DEFINED 2,4 1,330,560
CENTEX CORP COM 152312104 3,203 70,000 SH DEFINED 2 70,000
CEPHALON INC NOTE 156708AE9 2,394 2,490,000 PRN DEFINED 2,3 30,741
CHARLES RIVER DBCV 159863AL3 1,884 1,450,000 PRN DEFINED 2,3 37,304
CHESAPEAKE ENERGY CORP PFDCONV 165167800 278 2,500 PRN DEFINED 2,3,4 152
CHEVRON TEXACO CORP COM 166764100 4,235 45,000 SH DEFINED 2,3 45,000
CHICAGO BRIDGE & IRON NYREGSH 167250109 279 10,000 SH DEFINED 2 10,000
CIGNA CORP COM 125509109 1,254 18,225 SH DEFINED 2 18,225
CINERGY CORP COM 172474108 2,755 72,500 SH DEFINED 2 72,500
CISCO SYSTEMS INC COM 17275R102 3,081 130,000 SH DEFINED 2,3 130,000
CIT GROUP INC COM 125581108 1,825 47,675 SH DEFINED 2 47,675
CITIGROUP INC COM 172967101 6,083 130,825 SH DEFINED 2 130,825
CLEAR CHANNEL COMM COM 184502102 185 5,000 SH DEFINED 2,3 5,000
CLOROX CO COM 189054109 1,345 25,000 SH DEFINED 2,3 25,000
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
CNA SURETY CORPORATION COM 12612L108 300,305 27,425,147 SH DEFINED 1,2,4 27,425,147
CNF INC COM 12612W104 3,155 75,925 SH DEFINED 2 75,925
COACH INC COM 189754104 2,440 54,000 SH DEFINED 2,3 54,000
COLGATE PALMOLIVE CO. COM 194162103 1,344 23,000 SH DEFINED 2,3 23,000
COMCAST CORP CL A SPL CL A 20030N200 7,562 273,900 SH DEFINED 2,3 273,900
COMMSCOPE INC COM 203372107 495 23,075 SH DEFINED 2 23,075
COMPUTER ASSOCIATES INTL COM 204912109 1,969 70,175 SH DEFINED 2 70,175
CONEXANT SYSTEMS NOTE 207142AB6 2,948 3,000,000 PRN DEFINED 2,4 330,578
COOPER INDUSTRIES INC CL A G24182100 1,952 32,850 SH DEFINED 2 32,850
CORNING INC DBCV 219350AJ4 2,796 3,579,000 PRN DEFINED 2,3,4 29,815
CORNING INC NOTE 219350AK1 2,815 2,000,000 PRN DEFINED 2,4 206,718
COSTCO WHOLESALE CORP COM 22160K105 2,464 60,000 SH DEFINED 2,3 60,000
CYTEC INDUSTRIES INC COM 232820100 2,561 56,350 SH DEFINED 2 56,350
DEL MONTE FOODS CO COM 24522P103 505 49,700 SH DEFINED 2 49,700
DELL COMPUTER CORP COM 24702R101 3,582 100,000 SH DEFINED 2,3 100,000
DELPHI FINANCIAL GROUP CLA 247131105 2,139 48,075 SH DEFINED 2 48,075
DIAGEO PLC ADR 25243Q205 1,111 20,300 SH DEFINED 2 20,300
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
DILLARDS INC CLA 254067101 537 24,075 SH DEFINED 2 24,075
DISNEY (WALT) CO NOTE 254687AU0 37,538 35,000,000 PRN DEFINED 2 1,188,051
DISNEY WALT CO COM 254687106 255 10,000 SH DEFINED 2,3,4 10,000
DOMINION RESOURCES INC NOTE 25746UAP4 8,166 8,125,000 PRN DEFINED 2,4 110,390
DOUBLECLICK INC NOTE 258609AE6 4,513 5,000,000 PRN DEFINED 2,4 381,156
DUKE ENERGY CORP NOTE 264399EJ1 7,053 7,000,000 PRN DEFINED 2,3,4 296,736
EDO CORP NOTE 281347AD6 523 500,000 PRN DEFINED 2,3 15,995
ELECTRONCIS FOR IMAGING DBCV 286082AA0 1,762 1,450,000 PRN DEFINED 2,3 54,884
ELECTRONIC DATA SYSTEMS NOTE 285661AF1 23,520 24,500,000 PRN DEFINED 2,3,4 717,634
EMC CORP MASS SR NT NOTE 268648AG7 1,052 960,000 PRN DEFINED 2,3 69,565
ENTERGY CORP COM 29364G103 4,542 81,100 SH DEFINED 2 81,100
ESTERLINE TECHNOLOGIES COM 297425100 961 32,550 SH DEFINED 2 32,550
FALCON FINANCIAL INVESTMENT COM 306032103 2,121 271,890 SH DEFINED 2,4 271,890
FIRST CITIZENS BCSHS CL A 31946M103 232 1,900 SH DEFINED 2 1,900
FISHER SCIENTIFIC INTL NOTE 338032AW5 2,032 1,450,000 PRN DEFINED 2,3 30,549
FMC CORP COM 302491303 1,715 39,775 SH DEFINED 2 39,775
FMC TECHNOLOGIES INC COM 30249U101 1,927 66,896 SH DEFINED 2 66,896
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
FREDDIE MAC COM 313400301 2,511 39,675 SH DEFINED 2 39,675
GAP INC NOTE 364760AJ7 3,670 2,360,000 PRN DEFINED 2,3 146,403
GARDNER DENVER INC COM 365558105 937 33,600 SH DEFINED 2 33,600
GATX CORP COM 361448103 339 12,450 SH DEFINED 2 12,450
GENERAL CABLE CORP COM 369300108 825 96,450 SH DEFINED 2 96,450
GENERAL ELECTRIC CO COM 369604103 5,783 178,500 SH DEFINED 2,3 178,500
GENERAL MARITIME CORP SHS Y2692M103 3,018 110,000 SH DEFINED 2 110,000
GENERAL MOTORS SRCONV 370442741 20,448 800,000 SH DEFINED 2,3,4 800,000
GILEAD SCIENCES NOTE 375558AD5 2,605 1,750,000 PRN DEFINED 2,3 37,234
GLENBOROUGH REALTY TRUST COM 37803P105 395 21,550 SH DEFINED 2 21,550
GLIMCHER REALTY TRUST SH BEN 379302102 572 25,875 SH DEFINED 2 25,875
GUITAR CENTER MG NOTE 402040AC3 1,853 1,300,000 PRN DEFINED 2,3 37,594
HCA COM 404119109 579 13,925 SH DEFINED 2 13,925
HEALTH NET INC COM 42222G108 2,256 85,125 SH DEFINED 2 85,125
HERMAN MILLER INC COM 600544100 240 8,300 SH DEFINED 2 8,300
HEWLETT-PACKARD CO. COM 428236103 1,657 78,525 SH DEFINED 2 78,525
HONDA MOTOR CO LTD AMERNSHS 438128308 3,011 123,800 SH DEFINED 2 123,800
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
HORACE MANN EDUCATORS COM 440327104 312 17,875 SH DEFINED 2 17,875
HUTCHINSON TECH NOTE 448407AE6 1,036 1,000,000 PRN DEFINED 2,3 33,512
INCO LTD NOTE 453258AM7 4,794 5,000,000 PRN DEFINED 2,4 132,765
INCO LTD DBCV 453258AT2 3,701 2,952,000 PRN DEFINED 2 94,273
INTEGRA LIFESCIENCES HLD NOTE 457985AB5 764 635,000 PRN DEFINED 2,3 18,596
INTEL CORP COM 458140100 2,186 79,200 SH DEFINED 2,3 79,200
INTL BUSINESS MACHINE COM 459200101 4,848 55,000 SH DEFINED 2 55,000
INTERPUBLIC GRP NOTE 460690AJ9 60,870 65,003,000 PRN DEFINED 2,3,4 1,145,093
INTERSTATE BAKERIES COM 46072H108 539 49,650 SH DEFINED 2,3 49,650
INTL RECTIFIER NOTE 460254AE5 15,029 15,297,000 PRN DEFINED 2,4 206,898
INVITROGEN INC NOTE 46185RAD2 3,394 3,260,000 PRN DEFINED 2,3 37,864
IPC HOLDINGS LTD ORD G4933P101 2,744 74,300 SH DEFINED 2 74,300
JOHNSON & JOHNSON COM 478160104 2,507 45,000 SH DEFINED 2,3 45,000
JP MORGAN CHASE&CO COM 46625H100 1,939 50,000 SH DEFINED 2,3 50,000
KAYDON CORP NOTE 486587AB4 782 650,000 PRN DEFINED 2,3 22,291
KENNAMETAL INC COM 489170100 458 10,000 SH DEFINED 2 10,000
KIMBERLY CLARK COM 494368103 2,965 45,000 SH DEFINED 2,3 45,000
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
L-3 COMMUNICATIONS CORP COM 502424104 334 5,000 SH DEFINED 2 5,000
LEAR SEATING CORP COM 521865105 2,396 40,625 SH DEFINED 2 40,625
LENNOX INTERNATL NOTE 526107AB3 983 815,000 PRN DEFINED 2,3 45,059
LIBERTY MEDIA COMSERA 530718105 3,024 336,400 SH DEFINED 2 336,400
LINCOLN NATIONAL CORP COM 534187109 1,890 40,000 SH DEFINED 2 40,000
LOCKHEED MARTIN CORP COM 539830109 1,614 31,000 SH DEFINED 2 31,000
LOWES COMPANIES NOTE 548661CG0 19,900 20,000,000 PRN DEFINED 2,4 344,240
MARSH & MCLENNAN COS INC COM 571748102 908 20,000 SH DEFINED 2 20,000
MASCO CORPORATION COM 574599106 312 10,000 SH DEFINED 2 10,000
MBIA INC. COM 55262C100 1,145 20,050 SH DEFINED 2 20,050
MEDIACOM COMMUNICATIONS CL A 58446K105 1,564 200,000 SH DEFINED 2 200,000
MEDICIS PHARMACE NOTE 58470KAA2 3,240 2,200,000 PRN DEFINED 2,3 37,866
MEDTRONIC INC COM 585055106 1,998 41,000 SH DEFINED 2,3 41,000
MERRILL LYNCH FRNT 590188A73 42,781 42,500,000 PRN DEFINED 2,3,4 587,405
METLIFE INC COM 59156R108 2,563 71,500 SH DEFINED 2 71,500
METROCALL HOLDINGS INC COM 59164X105 4,401 65,690 SH DEFINED 2,4 65,690
MICRON TECH NOTE 595112AG8 3,538 2,500,000 PRN DEFINED 2,3 212,080
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
MICROSOFT CORP COM 594918104 3,510 122,900 SH DEFINED 2,3 122,900
MILACRON INC COM 598709103 251 62,775 SH DEFINED 2 62,775
MORGAN STANLEY ASIA-PACIF COM 61744U106 795 70,700 SH DEFINED 2 70,700
NACCO INDS INC CL A 629579103 589 6,200 SH DEFINED 2 6,200
NCI BUILDING SYSTEMS INC COM 628852105 903 27,750 SH DEFINED 2 27,750
NEWS AMER INC NOTE 652482AZ3 49,652 87,300,000 PRN DEFINED 2,3,4 1,060,547
NISOURCE INC COM 65473P105 4,093 198,500 SH DEFINED 2 198,500
NORTEL NETWORKS NOTE 656568AB8 8,618 9,000,000 PRN DEFINED 2,4 900,000
NORTHERN TRUST CORP COM 665859104 1,522 36,000 SH DEFINED 2 36,000
NOVOGEN LIMITED ADR 67010F103 259 13,950 SH DEFINED 2 13,950
OAK INDUSTRIES NOTE 671400AL3 18,233 17,532,000 PRN DEFINED 2,4 1,129,638
OHIO CASUALTY CORP COM 677240103 684 33,975 SH DEFINED 2 33,975
OLD REPUBLIC INTL CORP COM 680223104 4,847 204,338 SH DEFINED 2 204,338
OMNICOM GROUP NOTE 681919AK2 3,975 4,000,000 PRN DEFINED 2,4 36,360
OMNICOM GROUP NOTE 681919AM8 12,531 12,500,000 PRN DEFINED 2,3,4 113,625
P G 7 E CORPORATION COM 69331C108 3,632 130,000 SH DEFINED 2 130,000
PAPA JOHN'S INTL INC COM 698813102 592 20,025 SH DEFINED 2 20,025
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
PAYLESS SHOESOURCE INC COM 704379106 1,447 97,050 SH DEFINED 2 97,050
PEP BOYS-MANNY MOE JACK NOTE 713278AP4 1,100 900,000 PRN DEFINED 2,3 40,184
PEPSICO INCORPORATED COM 713448108 1,724 32,000 SH DEFINED 2,3 32,000
PFIZER INC COM 717081103 5,310 154,900 SH DEFINED 2,3 154,900
PHILLIPS PETROLEUM CO COM 20825C104 1,406 18,425 SH DEFINED 2 18,425
PHOTRONICS INC NOTE 719405AE2 186 135,000 PRN DEFINED 2,3 8,496
PIONEER NATURAL RESOURCES COM 723787107 1,403 40,000 SH DEFINED 2 40,000
PLACER DOME INC COM 725906101 1,732 104,100 SH DEFINED 2 104,100
PMI GROUP INC COM 69344M101 1,741 40,000 SH DEFINED 2,3 40,000
PPL CORPORATION COM 69351T106 2,566 55,900 SH DEFINED 2 55,900
PRECISION CASTPARTS CORP COM 740189105 1,437 26,275 SH DEFINED 2 26,275
PRIME HOSPITALITY CORP COM 741917108 68 6,375 SH DEFINED 2,4 6,375
PROTECTIVE LIFE CORP COM 743674103 997 25,775 SH DEFINED 2 25,775
PUBLIC SERVICE CO OF NM COM 69349H107 586 28,238 SH DEFINED 2 28,238
PULTE CORP COM 745867101 7,284 140,000 SH DEFINED 2 140,000
R.H. DONNELLEY CORP COM 74955W307 857 19,600 SH DEFINED 2 19,600
RADIAN GROUP INC COM 750236101 777 16,225 SH DEFINED 2 16,225
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
RESMED INC NOTE 761152AB3 1,533 1,450,000 PRN DEFINED 2,3 23,927
ROBBINS & MYERS INC COM 770196103 297 13,250 SH DEFINED 2,3 13,250
RYLAND GROUP INC COM 783764103 1,564 20,000 SH DEFINED 2 20,000
SABRE GROUP HOLDINGS INC CLA 785905100 277 10,000 SH DEFINED 2 10,000
SANMINA CORP SDCV 800907AD9 36,009 69,415,000 PRN DEFINED 2,3,4 449,990
SARA LEE CORP COM 803111103 2,656 115,550 SH DEFINED 2 115,550
SCANA CORP COM 80589M102 2,851 78,400 SH DEFINED 2 78,400
SCHLUMBERGER LIMITED COM 806857108 3,722 58,600 SH DEFINED 2,3 58,600
SCHWEITZER-MAUDUIT INTL COM 808541106 271 8,850 SH DEFINED 2 8,850
SCRIPPS CO (E.W.) CL A 811054204 3,150 30,000 SH DEFINED 2,3 30,000
SIGNATURE BANK COM 82669G104 475 20,000 SH DEFINED 2,4 20,000
SPANISH BROADCASTING SYS CL A 846425882 1,954 209,432 SH DEFINED 2,4 209,432
SPHERION CORPORATION COM 848420105 689 67,950 SH DEFINED 2 67,950
SPRINT CORP COM 852061100 3,080 175,000 SH DEFINED 2 175,000
ST PAUL COS COM 792860108 2,868 70,743 SH DEFINED 2 70,743
STAR GAS PARTNER SRSUBUN 85512C204 618 29,229 SH DEFINED 2,4 29,229
SUN HEALTHCARE GROUP INC COM 866933401 22 2,480 SH DEFINED 2,4 2,480
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
TARGET CORP COM 87612E106 1,699 40,000 SH DEFINED 2,3 40,000
TEEKAY SHIPPING CORP COM Y8564W103 1,533 41,000 SH DEFINED 2 41,000
TEJON RANCH COM 879080109 717 20,600 SH DEFINED 2 20,600
TEVA PHARMACEUT FIN BV DBCV 88164RAA5 3,098 3,000,000 PRN DEFINED 2,3,4 79,155
TEXTRON INC COM 883203101 1,080 18,200 SH DEFINED 2 18,200
TJX COS INC NOTE 872540AL3 5,814 6,800,000 PRN DEFINED 2,3,4 222,136
TORCHMARK CORP COM 891027104 1,439 26,750 SH DEFINED 2 26,750
TRIARC COMPANIES CL A 895927101 179 17,350 SH DEFINED 2 17,350
TRIARC COMPANIES CLBSER1 895927309 353 34,700 SH DEFINED 2 34,700
TRINITY INDUSTRIES COM 896522109 640 20,125 SH DEFINED 2 20,125
UNION PACIFIC COM 907818108 1,907 32,075 SH DEFINED 2 32,075
UNITED NATIONAL GROUP LTD CLA 91103X102 444 29,200 SH DEFINED 2 29,200
UNITED PARCEL SERVICE CL B 911312106 2,894 38,500 SH DEFINED 2,3 38,500
UNITEDHEALTH GROUP INC COM 91324P102 1,556 25,000 SH DEFINED 2,3 25,000
UNIVERSAL CORP-VA COM 913456109 548 10,750 SH DEFINED 2 10,750
UNOCAL CORP COM 915289102 2,607 68,600 SH DEFINED 2 68,600
US CORPORATION COM 91729Q101 709 20,175 SH DEFINED 2 20,175
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
VALASSIS COMMUNICATIONS COM 918866104 525 17,225 SH DEFINED 2 17,225
VALERO ENERGY CORP COM 91913Y100 4,057 55,000 SH DEFINED 2 55,000
VERZION COMMUNICATIONS COM 92343V104 955 26,400 SH DEFINED 2 26,400
VIACOM INC CL B 925524308 1,786 50,000 SH DEFINED 2,3 50,000
VIAD CORP COM 92552R109 723 26,775 SH DEFINED 2 26,775
VINTAGE PETROLEUM INC COM 927460105 2,546 150,000 SH DEFINED 2 150,000
VODAFONE AIRTOUCH PLC ADR 92857W100 884 40,000 SH DEFINED 2 40,000
WAL MART STORES INC COM 931142103 1,583 30,000 SH DEFINED 2,3 30,000
WALGREEN CO COM 931422109 2,897 80,000 SH DEFINED 2,3 80,000
WASHINGTON MUTUAL INC COM 939322103 1,631 42,200 SH DEFINED 2 42,200
WEBMD CORP NOTE 94769MAC9 2,045 1,800,000 PRN DEFINED 2,3 194,322
WELLS FARGO COMPANY COM 949746101 1,717 30,000 SH DEFINED 2,3 30,000
WEYERHAEUSER COMPANY COM 962166104 2,525 40,000 SH DEFINED 2,3 40,000
WHIRLPOOL CORPORATION COM 963320106 1,576 22,975 SH DEFINED 2 22,975
WILLIAMS COS INC COM 969457100 3,320 279,000 SH DEFINED 2 279,000
WISCONSIN ENERGY CORP COM 976657106 2,425 74,375 SH DEFINED 2 74,375
WYETH COM 983024100 1,808 50,000 SH DEFINED 2,3 50,000
XCEL ENERGY INC COM 98389B100 1,943 116,300 SH DEFINED 2 116,300
XILINX INC COM 983919101 233 7,000 SH DEFINED 2 7,000
XL CAPITAL LTD CL A G98255105 1,205 15,975 SH DEFINED 2 15,975
YORK INTERNATIONAL CORP COM 986670107 582 14,175 SH DEFINED 2 14,175