FORM 13F

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C.  20549

                              ------------------

                              FORM 13F COVER PAGE

       Report for the Calendar Year or Quarter Ended        September 30, 2007

                Check here if Amendment:  [ ]; Amendment Number:
                                                                 -------

                                This Amendment:

                             [ ] is a restatement.

                        [ ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:                           Loews Corporation
------------------------------------------------------------------------------

Address:                 667 Madison Avenue    New York     New York     10021
------------------------------------------------------------------------------
                               (Street)        (City)        (State)     (Zip)

Form 13F File Number: 28-217

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:       Gary W. Garson
------------------------------------------------------------------------------

Title:      General Counsel and Senior Vice President
------------------------------------------------------------------------------

Phone:      212-521-2932
------------------------------------------------------------------------------

Signature, Place, and Date of Signing:

/s/ Gary W. Garson
------------------------------------------------------------------------------
(Signature)

Place:      667 Madison Avenue    New York     New York     10065
------------------------------------------------------------------------------
                  (Street)        (City)        (State)     (Zip)

Date:       November 13, 2007
------------------------------------------------------------------------------

                                  Page 1 of 22


  Loews Corporation ("Loews"), by virtue of its approximately 89% ownership of
voting securities of CNA Financial Corporation whose business address is CNA
Plaza, Chicago, Illinois 60685 ("CNA"), may be deemed to have investment
discretion regarding certain securities (the "CNA Securities") as to which
investment discretion is deemed to be exercised by CNA. CNA is reporting on
behalf of Loews regarding the CNA Securities.

      Report Type:

[ ]   13F HOLDINGS REPORT.

[ ]   13F NOTICE.

[X]   13F COMBINATION REPORT.

List of Other Managers Reporting for this Manager.

Form 13F File Number:  28-346

Name:  CNA Financial Corporation

                                  Page 2 of 22


                            FORM 13F SUMMARY PAGE

                                REPORT SUMMARY

Number of Other Included Managers:  NONE.

Form 13F Information Table Entry Total:  241

Form 13F Information Table Value Total:  $20,076.7 (million)

List of Other Included Managers:  NONE.

                                  Page 3 of 22







                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

3M CO                 Common   88579Y101      8,422      90,000   SH              Sole                      90,000

ACCENTURE LTD         Common   G1150G111      4,673     116,100   SH              Sole                     116,100
BERMUDA

AFFILIATED COMPUTER   Common   008190100     15,102     300,600   SH              Sole                     300,600
SERVICES

AFTERMARKET           Common   008318107        542      17,075   SH              Sole                      17,075
TECHNOLOGY CORP

ALCATEL-LUCENT-       Common   013904305      2,568     252,277   SH              Sole                     252,277
SPONSORED ADR

ALCOA INC             Common   013817101      3,736      95,500   SH              Sole                      95,500

ALLEGHENY             Common   01741R102      6,707      61,000   SH              Sole                      61,000
TECHNOLOGIES INC

ALLIANCEBERNSTEIN     Common   01881G106      9,688     110,000   SH              Sole                     110,000
HOLDING

ALLSTATE CORP         Common   020002101      1,323      23,125   SH              Sole                      23,125

AMERICAN ELEC PWR     Common   025537101      2,537      55,060   SH              Sole                      55,060
INC

AMERICAN EQUITY INVT  Common   025676206        570      53,550   SH              Sole                      53,550
LIFE HL

AMERICAN              Common   026874107      5,277      78,000   SH              Sole                      78,000
INTERNATIONAL GROUP

AMERICAN NATL INS CO  Common   028591105      3,088      23,475   SH              Sole                      23,475
                                        -----------
                          TOTAL $            64,233
                                        -----------

                                                      Page 4 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

AMERIPRISE FINANCIAL  Common   03076C106      5,926      93,900   SH              Sole                      93,900
INC

AMERISOURCEBERGEN     Common   03073E105        841      18,550   SH              Sole                      18,550
CORP

AMGEN INC             Common   031162100     23,733     419,525   SH              Sole                     419,525

ANADARKO PETE CORP    Common   032511107      8,600     160,000   SH              Sole                     160,000

ANHEUSER BUSCH COS    Common   035229103        587      11,750   SH              Sole                      11,750
INC

APACHE CORP           Common   037411105      2,161      24,000   SH              Sole                      24,000

APEX SILVER MINES LTD Common   G04074103      2,164     111,266   SH              Sole                     111,266

ARGO GROUP            Common   G0464B107        369       8,475   SH              Sole                       8,475
INTERNATIONAL

ARVINMERITOR INC      Common   043353101        356      21,150   SH              Sole                      21,150

AURIZON MINES LTD     Common   05155P106      2,190     536,305   SH              Sole                     536,305

BANK NEW YORK         Common   064058100      5,145     116,566   SH              Sole                     116,566
MELLON CORPORATION,
THE

BANK OF AMERICA       Common   060505104     13,724     273,000   SH              Sole                     273,000
CORPORATION

BARR                  Common   068306109     11,382     200,000   SH              Sole                     200,000
PHARMACEUTICALS INC
                                      --------------
                          TOTAL $             77,178
                                      --------------

                                                      Page 5 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

BARRICK GOLD CORP     Common   067901108      9,828     243,986   SH              Sole                     243,986

BEARINGPOINT INC      Common   074002106        117      28,825   SH              Sole                      28,825

BLACK & DECKER CORP   Common   091797100      1,000      12,000   SH              Sole                      12,000

BOARDWALK PIPELINE    Common   096627104  1,631,235  53,256,122   SH              Sole                  55,256,122
PARTNERS

BOWNE & CO INC        Common   103043105        387      23,200   SH              Sole                      23,200

BRISTOL MYERS SQUIBB  Common   110122108      1,049      36,400   SH              Sole                      36,400
CO

CAMECO CORP           Common   13321L108     13,641     295,000   SH              Sole                     295,000

CAPITAL ONE FINL CORP Common   14040H105      1,222      18,400   SH              Sole                      18,400

CATERPILLAR INC DEL   Common   149123101        625       7,970   SH              Sole                       7,970

CBS CORP              Common   124857202      8,663     275,000   SH              Sole                     275,000

CHEMICAL FINANCIAL    Common   163731102        463      19,100   SH              Sole                      19,100
CORP

CIBER INC             Common   17163B102        711      90,975   SH              Sole                      90,975

CIENA CORP            Common   171779309        762      20,000   SH              Sole                      20,000
                                      --------------
                          TOTAL $          1,669,703
                                      --------------

                                                      Page 6 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

CIT GROUP INC         Common   125581108     16,100     400,500   SH              Sole                     400,500

CITIGROUP INC         Common   172967101     39,191     839,750   SH              Sole                     839,750

CLECO CORP NEW        Common   12561W105        456      18,050   SH              Sole                      18,050

CNA FINL CORP         Common   126117100  9,495,142 241,483,773   SH              Sole                 241,483,773

COCA COLA CO          Common   191216100        207       3,600   SH              Sole                       3,600

COMCAST CORP NEW      Common   20030N101        567      23,465   SH              Sole                      23,465
CLA

COMCAST CORP NEW      Common   20030N200      1,231      51,390   SH              Sole                      51,390
SPECIAL CLA

COMERICA INC          Common   200340107        708      13,800   SH              Sole                      13,800

COMPTON PETROLEUM     Common   204940100      4,159     450,000   SH              Sole                     450,000
CORP

COMPUTER ASSOC INTL   Common   12673P105      1,301      50,572   SH              Sole                      50,572
INC

CONEXANT SYSTEMS      Common   207142100        960     800,000   SH              Sole                     800,000

CONMED CORP           Common   207410101        318      11,375   SH              Sole                      11,375

CONOCOPHILLIPS        Common   20825C104      6,583      75,000   SH              Sole                      75,000
                                      --------------
                          TOTAL $          9,566,923
                                      --------------

                                                       Page 7 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

CON-WAY INC           Common   205944101        206       4,475   SH              Sole                       4,475

CORNING INC           Common   219350105      4,092     166,000   SH              Sole                     166,000

COUNTRYWIDE           Common   222372104        701      36,875   SH              Sole                      36,875
FINANCIAL CORP

COVIDIEN LTD-W/I      Common   G2552X108      6,225     150,001   SH              Sole                     150,001

D R HORTON INC        Common   23331A109      3,177     248,000   SH              Sole                     248,000

DEL MONTE FOODS CO    Common   24522P103        333      31,725   SH              Sole                      31,725

DELPHI FINL GROUP INC Common   247131105        376       9,293   SH              Sole                       9,293

DESARROLLADORA        Common   25030W100        222       4,000   SH              Sole                       4,000
HOMEX-ADR

DIAGEO P L C          Common   25243Q205        553       6,300   SH              Sole                       6,300

DIAMOND OFFSHORE      Common   25271C102  7,942,152  70,104,620   SH              Sole                  70,104,620
DRILLING INC

DIAMONDS TR           Common   252787106     41,673     300,000   SH              Sole                     300,000

DISCOVERY HOLDING     Common   25468Y107      2,885     100,000   SH              Sole                     100,000
CO-A W/I

DISNEY WALT CO        Common   254687106      3,439     100,000   SH              Sole                     100,000
                                      --------------
                          TOTAL $          8,006,034
                                      --------------

                                                       Page 8 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

DOVER CORP            Common   260003108      8,417     165,200   SH              Sole                     165,200

DU PONT E I DE        Common   263534109      1,586      32,000   SH              Sole                      32,000
NEMOURS & CO

DYNEGY INC NEW        Common   26817G102     16,447   1,780,000   SH              Sole                   1,780,000

E M C CORP MASS       Common   268648102      1,231      59,190   SH              Sole                      59,190

ELECTRONIC DATA SYS   Common   285661104      2,184     100,000   SH              Sole                     100,000
NEW

ENSCO INTL INC        Common   26874Q100      2,244      40,000   SH              Sole                      40,000

EXELON CORP           Common   30161N101        980      13,000   SH              Sole                      13,000

EXPRESSJET HOLDINGS   Common   30218U108         56      17,975   SH              Sole                      17,975
INC

FBL FINANCIAL GROUP   Common   30239F106        448      11,350   SH              Sole                      11,350
INC-CL A

FEDERAL HOME LN MTG   Common   313400301      2,273      38,525   SH              Sole                      38,525
CORP

FEDERAL NATL MTG      Common   313586109      1,636      26,900   SH              Sole                      26,900
ASSN

FIRST AMERN CORP CALIFCommon   318522307      1,014      27,700   SH              Sole                      27,700

FLEXTRONICS INTL LTD  Common   Y2573F102      5,590     500,000   SH              Sole                     500,000
                                      --------------
                          TOTAL $             44,106
                                      --------------

                                                      Page 9 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

FREMONT GENERAL CORP  Common   357288109      3,608     925,000   SH              Sole                     925,000

GAMMON LAKE           Common   36467T106      3,546     299,500   SH              Sole                     299,500
RESOURCES INC

GENERAL ELEC CO       Common   369604103      3,444      83,181   SH              Sole                      83,181

GOLDCORP INC NEW      Common   380956409      1,834      60,000   SH              Sole                      60,000

GRIFFON CORPORATION   Common   398433102        506      33,525   SH              Sole                      33,525

HANGER ORTHOPEDIC     Common   41043F208        304      26,800   SH              Sole                      26,800
GROUP INC

HARTFORD FINANCIAL    Common   416515104      4,165      45,000   SH              Sole                      45,000
SVCS GRP

HECLA MINING CO       Common   422704106      3,976     444,218   SH              Sole                     444,218

HOME DEPOT INC        Common   437076102      5,245     161,675   SH              Sole                     161,675

HORACE MANN           Common   440327104        483      24,525   SH              Sole                      24,525
EDUCATORS

HORNBECK OFFSHORE     Common   440543106      4,221     115,000   SH              Sole                     115,000
SERVICES

IAMGOLD CORPORATION   Common   450913108      3,086     354,633   SH              Sole                     354,633

IDACORP INC           Common   451107106        326       9,950   SH              Sole                       9,950
                                      --------------
                          TOTAL $             34,744
                                      --------------

                                                       Page 10 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

IMA EXPLORATION INC   Common   449664101        262     571,886   SH              Sole                     571,886

IMS HEALTH INC        Common   449934108      1,713      55,900   SH              Sole                      55,900

INDYMAC BANCORP INC   Common   456607100        212       8,975   SH              Sole                       8,975

INTERNATIONAL         Common   459200101      9,995      84,850   SH              Sole                      84,850
BUSINESS MACHS

IPC HLDGS LTD         Common   G4933P101      1,331      46,125   SH              Sole                      46,125

ISHARES INC MSCI      Common   464286848     46,605   3,250,000   SH              Sole                   3,250,000
JAPAN

ISHARES INC MSCI      Common   464286673      3,705     250,000   SH              Sole                     250,000
SINGAPORE

J P MORGAN CHASE & CO Common   46625H100        973      21,225   SH              Sole                      21,225

JAGUAR MINING INC     Common   47009M103      1,949     220,000   SH              Sole                     220,000

JDS UNIPHASE CORP     Common   46612J507      8,228     550,000   SH              Sole                     550,000

JOHNSON & JOHNSON     Common   478160104     53,849     819,625   SH              Sole                     819,625

KB HOME               Common   48666K109        627      25,000   SH              Sole                      25,000

KELLY SERVICES INC -  Common   488152208        515      26,000   SH              Sole                      26,000
CL A
                                      --------------
                          TOTAL $            129,964
                                      --------------

                                                      Page 11 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

KIMBER RESOURCES INC  Common   49435N101        581     641,515   SH              Sole                     641,515

LEAR CORP             Common   521865105      2,078      64,725   SH              Sole                      64,725

LEHMAN BROS HLDGS INC Common   524908100      1,017      16,475   SH              Sole                      16,475

LEXMARK INTL NEW      Common   529771107      2,907      70,000   SH              Sole                      70,000

LIBERTY GLOBAL INC-A  Common   530555101      3,856      93,991   SH              Sole                      93,991

LIBERTY GLOBAL INC-C  Common   530555309      1,665      43,068   SH              Sole                      43,068

LIBERTY MEDIA HOLD-   Common   53071M302      1,872      15,000   SH              Sole                      15,000
CAP SER A

LIBERTY MEDIA-        Common   53071M104      1,441      75,000   SH              Sole                      75,000
INTERACTIVE A

LINCOLN NATL CORP IND Common   534187109      4,948      75,000   SH              Sole                      75,000

MAGNA INTL INC        Common   559222401      1,194      12,400   SH              Sole                      12,400

MARATHON OIL CORP     Common   565849106      1,140      20,000   SH              Sole                      20,000

MCDONALDS CORP        Common   580135101        686      12,600   SH              Sole                      12,600

MCGRAW HILL COS INC   Common   580645109      5,091     100,000   SH              Sole                     100,000
                                      --------------
                          TOTAL $             28,476
                                      --------------

                                                      Page 12 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

MEDIACOM              Common   58446K105      1,410     200,000   SH              Sole                     200,000
COMMUNICATIONS CORP

MEDTRONIC INC         Common   585055106      1,692      30,000   SH              Sole                      30,000

MEMC ELECTRONIC       Common   552715104      1,831      31,100   SH              Sole                      31,100
MATERIALS

MESABI TRUST          Common   590672101      1,408      69,000   SH              Sole                      69,000

METALLICA RESOURCES   Common   59125J104      1,931     436,358   SH              Sole                     436,358
INC

METLIFE INC           Common   59156R108        591       8,475   SH              Sole                       8,475

MI DEVELOPMENTS INC-  Common   55304X104        639      19,300   SH              Sole                      19,300
CLASS A

MICROSOFT CORP        Common   594918104     19,315     655,625   SH              Sole                     655,625

MICROSTRATEGY INC     Common   594972408      5,951      75,000   SH              Sole                      75,000

MINEFINDERS CORP      Common   602900102        968      90,311   SH              Sole                      90,311

MIRAMAR MINING CORP   Common   60466E100      2,904     612,568   SH              Sole                     612,568

MORGAN STANLEY        Common   617446448        784      12,450   SH              Sole                      12,450

NEW YORK TIMES CO     Common   650111107      7,212     365,000   SH              Sole                     365,000
                                      --------------
                          TOTAL $             46,636
                                      --------------

                                                      Page 13 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

NEWS CORP INC         Common   65248E203      5,263     225,000   SH              Sole                     225,000

NEWS CORP INC         Common   65248E104      5,507     250,414   SH              Sole                     250,414

NORTHEAST UTILITIES   Common   664397106        714      25,000   SH              Sole                      25,000

NORTHERN TR CORP      Common   665859104        590       8,900   SH              Sole                       8,900

NORTHROP GRUMMAN      Common   666807102      1,390      17,825   SH              Sole                      17,825
CORP

NORTHWESTERN CORP     Common   668074305      6,047     222,564   SH              Sole                     222,564

NRG ENERGY INC        Common   629377508        476      11,260   SH              Sole                      11,260

OCCIDENTAL            Common   674599105      4,486      70,000   SH              Sole                      70,000
PETROLEUM CORP

OLD REP INTL CORP     Common   680223104        698      37,250   SH              Sole                      37,250

OMNICARE INC          Common   681904108      6,626     200,000   SH              Sole                     200,000

ORACLE CORP           Common   68389X105      4,843     223,700   SH              Sole                     223,700

OWENS CORNING INC     Common   690742101      5,010     200,000   SH              Sole                     200,000

PEDIATRIX MEDICAL     Common   705324101        254       3,875   SH              Sole                       3,875
GROUP INC
                                      --------------
                          TOTAL $             41,904
                                      --------------

                                                      Page 14 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

PFIZER INC            Common   717081103      3,917     160,350   SH              Sole                     160,350

PHH CORP              Common   693320202        574      21,825   SH              Sole                      21,825

PIKE ELECTRIC CORP    Common   721283109        589      31,375   SH              Sole                      31,375

PIONEER NAT RES CO    Common   723787107      4,048      90,000   SH              Sole                      90,000

PLANTRONICS INC NEW   Common   727493108        527      18,450   SH              Sole                      18,450

PRIMUS GUARANTY LTD   Common   G72457107      4,208     400,000   SH              Sole                     400,000

PULTE HOMES INC       Common   745867101      1,415     104,000   SH              Sole                     104,000

RADIO ONE INC         Common   75040P405        189      50,700   SH              Sole                      50,700

RAYTHEON CO           Common   755111507      4,467      70,000   SH              Sole                      70,000

REGIS CORP            Common   758932107        598      18,725   SH              Sole                      18,725

RENAISSANCE RE        Common   G7496G103      1,962      30,000   SH              Sole                      30,000
HLDGS LTD

RENT A CTR INC NEW    Common   76009N100      1,549      85,425   SH              Sole                      85,425

RF MICRODEVICES INC   Common   749941100        538      80,000   SH              Sole                      80,000
                                      --------------
                          TOTAL $             24,581
                                      --------------

                                                      Page 15 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

ROCKWELL              Common   773903109      1,390      20,000   SH              Sole                      20,000
AUTOMATION INC

RTI INTERNATIONAL     Common   74973W107      8,085     102,000   SH              Sole                     102,000
METALS INC

SAIC INC              Common   78390X101      2,879     150,000   SH              Sole                     150,000

SANGAMO BIOSCIENCES   Common   800677106        702      49,777   SH              Sole                      49,777
INC

SARA LEE CORP         Common   803111103        416      24,945   SH              Sole                      24,945

SCANA CORP NEW        Common   80589M102        558      14,405   SH              Sole                      14,405

SCHWEITZER-MAUDUIT    Common   808541106        510      21,875   SH              Sole                      21,875
INTL INC

SEAGATE TECHNOLOGY    Common   G7945J104      1,535      60,000   SH              Sole                      60,000

SEALY CORP            Common   812139301        572      40,775   SH              Sole                      40,775

SEMPRA ENERGY         Common   816851109      1,077      18,525   SH              Sole                      18,525

SILICON IMAGE INC     Common   82705T102        515     100,000   SH              Sole                     100,000

SMURFIT-STONE         Common   832727101        946      81,000   SH              Sole                      81,000
CONTAINER CORP

SPRINT NEXTEL         Common   852061100      3,837     201,950   SH              Sole                     201,950
CORPORATION
                                      --------------
                          TOTAL $             23,022
                                      --------------

                                                       Page 16 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

STEWART INFORMATION   Common   860372101        260       7,575   SH              Sole                       7,575
SERVICES

STILLWATER MNG CO     Common   86074Q102      2,936     285,334   SH              Sole                     285,334

TALISMAN ENERGY INC   Common   87425E103      1,970     100,000   SH              Sole                     100,000

TECH DATA CORP        Common   878237106        609      15,175   SH              Sole                      15,175

TEXTRON INC           Common   883203101        485       7,800   SH              Sole                       7,800

TFS FINANCIAL CORP    Common   87240R107        546      42,180   SH              Sole                      42,180

THE ST JOE COMPANY    Common   790148100      1,008      30,000   SH              Sole                      30,000

THORATEC CORP         Common   885175307      8,276     400,000   SH              Sole                     400,000

TIME WARNER CABLE-A   Common   88732J108      1,640      50,000   SH              Sole                      50,000

TIME WARNER INC       Common   887317105      3,672     200,000   SH              Sole                     200,000

TITAN INTERNATIONAL INCommon   88830M102     13,038     408,450   SH              Sole                     408,450

TJX COS INC NEW       Common   872540109        949      32,650   SH              Sole                      32,650

TORCHMARK CORP        Common   891027104      1,016      16,300   SH              Sole                      16,300
                                      --------------
                          TOTAL $             36,405
                                      --------------

                                                      Page 17 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

TREX COMPANY INC      Common   89531P105      7,294     655,925   SH              Sole                     655,925

TRICO MARINE SERVICES Common   896106200      2,414      81,000   SH              Sole                      81,000
INC

TRINITY INDS INC      Common   896522109      8,259     220,000   SH              Sole                     220,000

TYCO ELECTRONICS      Common   G9144P105      9,420     265,888   SH              Sole                     265,888
LTD-W/I

TYCO INTL LTD NEW     Common   G9143X208      8,979     202,501   SH              Sole                     202,501

UNILEVER N V          Common   904784709        801      25,950   SH              Sole                      25,950

UNITED AMERICA        Common   90933T109        678      31,525   SH              Sole                      31,525
INDEMNITY-A

UNITED PARCEL SERVICE Common   911312106        570       7,584   SH              Sole                       7,584
INC

UNITED STATIONERS INC Common   913004107        371       6,675   SH              Sole                       6,675

UNIVERSAL CORP VA     Common   913456109        557      11,375   SH              Sole                      11,375

UNIVERSAL STAINLESS   Common   913837100      3,581      90,000   SH              Sole                      90,000
& ALLOY

US BANCORP DEL        Common   902973304        918      28,210   SH              Sole                      28,210

VALERO ENERGY CORP    Common   91913Y100      8,565     127,500   SH              Sole                     127,500
NEW
                                      --------------
                          TOTAL $             52,407
                                      --------------

                                                       Page 18 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

VARIAN MED SYS INC    Common   92220P105        838      20,000   SH              Sole                      20,000

VIACOM INC            Common   92553P201      4,871     125,000   SH              Sole                     125,000

VIAD CORP             Common   92552R406        369      10,244   SH              Sole                      10,244

VODAFONE GROUP PLC    Common   92857W209      5,717     157,500   SH              Sole                     157,500
NEW

WAL MART STORES INC   Common   931142103      2,921      66,930   SH              Sole                      66,930

WELLPOINT HEALTH      Common   94973V107      7,892     100,000   SH              Sole                     100,000
NETWORK NEW

WESTERN DIGITAL CORP  Common   958102105     18,122     715,700   SH              Sole                     715,700

WHIRLPOOL CORP        Common   963320106      1,957      21,968   SH              Sole                      21,968

WHITING PETE CORP     Common   966387102      2,445      55,000   SH              Sole                      55,000
NEW

WHOLE FOODS MKT INC   Common   966837106      3,917      80,000   SH              Sole                      80,000

WIDEPOINT CORP        Common   967590100        780   1,000,000   SH              Sole                   1,000,000

WILLIAMS COS INC DEL  Common   969457100      1,110      32,600   SH              Sole                      32,600

WISCONSIN ENERGY      Common   976657106      1,408      31,275   SH              Sole                      31,275
CORP
                                      --------------
                          TOTAL $             52,347
                                      --------------

                                                       Page 19 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

WYETH                 Common   983024100     12,898     289,520   SH              Sole                     289,520

XERIUM TECHNOLOGIES   Common   98416J100      5,595   1,036,150   SH              Sole                   1,036,150
INC

XEROX CORP            Common   984121103      8,670     500,000   SH              Sole                     500,000

XL CAP LTD            Common   G98255105      2,033      25,675   SH              Sole                      25,675

ZHONE TECHNOLOGIES    Common   98950P108        476     400,000   SH              Sole                     400,000
INC

ZOLTEK COMPANIES INC  Common   98975W104     14,965     343,000   SH              Sole                     343,000
                                    ---------------
                        TOTAL $              44,634
                                    ---------------

                                                      Page 20 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

3M CO                 Common   88579Y951      5,615      60,000   SH     Put      Sole                      60,000

AMGEN INC             Common   031162950      2,263      40,000   SH     Put      Sole                      40,000

BARRICK GOLD CORP     Common   067901908     10,263     254,800   SH     Call     Sole                     254,800

BLACK & DECKER CORP   Common   091797950      6,664      80,000   SH     Put      Sole                      80,000

BROCADE               Common   111621908      1,712     200,000   SH     Call     Sole                     200,000
COMMUNICATIONS SYS
INC

CIENA CORP            Common   171779959      1,523      40,000   SH     Put      Sole                      40,000

D R HORTON INC        Common   23331A959      1,025      80,000   SH     Put      Sole                      80,000

DISNEY WALT CO        Common   254687956      3,439     100,000   SH     Put      Sole                     100,000

DU PONT E I DE        Common   263534959      1,982      40,000   SH     Put      Sole                      40,000
NEMOURS & CO

DYNEGY INC NEW        Common   26817G952        739      80,000   SH     Put      Sole                      80,000

FORD MTR CO DEL       Common   345370900     20,376   2,400,000   SH     Call     Sole                   2,400,000

GENERAL MTRS CORP     Common   370442955      8,808     240,000   SH     Put      Sole                     240,000

HOME DEPOT INC        Common   437076952      3,244     100,000   SH     Put      Sole                     100,000
                                      --------------
                          TOTAL $             67,653
                                      --------------

                                                      Page 21 of 22 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

JDS UNIPHASE CORP     Common   46612J957      5,236     350,000   SH     Put      Sole                     350,000

MEDTRONIC INC         Common   585055956      4,513      80,000   SH     Put      Sole                      80,000

MERCK & CO INC        Common   589331957      8,270     160,000   SH     Put      Sole                     160,000

MICROSOFT CORP        Common   594918954      2,946     100,000   SH     Put      Sole                     100,000

MORGAN STANLEY        Common   617446958      6,300     100,000   SH     Put      Sole                     100,000

OWENS CORNING INC     Common   690742951      3,006     120,000   SH     Put      Sole                     120,000

PFIZER INC            Common   717081953      1,466      60,000   SH     Put      Sole                      60,000

SEAGATE TECHNOLOGY    Common   G7945J954      3,837     150,000   SH     Put      Sole                     150,000

THE ST JOE COMPANY    Common   790148950      6,722     200,000   SH     Put      Sole                     200,000

THORATEC CORP         Common   885175907        414      20,000   SH     Call     Sole                      20,000

TRINITY INDS INC      Common   896522959      3,003      80,000   SH     Put      Sole                      80,000

UNITED STATES STL     Common   912909958      7,416      70,000   SH     Put      Sole                      70,000
CORP NEW

WHOLE FOODS MKT INC   Common   966837956      3,917      80,000   SH     Put      Sole                      80,000

ZOLTEK COMPANIES INC  Common   98975W954      8,726     200,000   SH     Put      Sole                     200,000
                                      -------------
                          TOTAL $            65,772
                                      -------------
              AGGREGATE TOTAL $          20,076,722
                                    ===============

                                                      Page 22 of 22 Pages