Ticker	Issuer	Shares	Value	%	Est. Cost	Unrealized	Class	CUSIP
—	BEAM Inc.	3,572,263	$298M	10.6%	$83.30	—	COM	073730103
—	BRE Properties	3,087,914	$194M	6.9%	$61.39	—	CL A	05564E106
—	Forest Laboratories Inc.	1,962,306	$181M	6.4%	$92.27	—	COM	345838106
—	Jos A Bank Clothiers Inc.	2,491,684	$160M	5.7%	$64.30	—	COM	480838101
—	LSI Corp.	13,780,319	$153M	5.4%	$11.05	—	COM	502161102
—	Capitalsource Inc.	10,299,477	$150M	5.3%	$13.18	—	COM	14055X102
—	UNS Energy Corp.	2,434,513	$146M	5.2%	$60.02	—	COM	903119105
—	Foster Wheeler AG	4,267,634	$138M	4.9%	$32.42	—	COM	H27178104
—	Time Water Cable Inc.	1,000,858	$137M	4.9%	$137.18	—	COM	887321207
—	Sterling Financial Corp. / WA	3,581,723	$119M	4.2%	$32.75	—	COM NEW	859319303
—	Safeway Inc.	3,041,411	$112M	4.0%	$36.94	—	COM NEW	786514208
—	KKR Financial Holdings LLC	7,923,634	$91.68M	3.3%	$11.64	—	COM	48248A306
—	ArthroCare Corp.	1,893,366	$91.24M	3.2%	$48.19	—	COM	043136100
—	Hudson City Bancorp Inc.	8,837,107	$86.87M	3.1%	$9.16	—	COM	443683107
—	Jones Group Inc. / The	5,414,218	$81.05M	2.9%	$14.97	—	COM	48020T101
—	Emeritus Corp.	2,312,212	$72.69M	2.6%	$31.44	—	COM	291005106
—	Sirius XM Holdings Inc.	21,205,405	$67.86M	2.4%	$3.20	—	COM	82968B103
—	AMCOL International Corp.	1,301,846	$59.6M	2.1%	$45.78	—	COM	02341W103
—	EPL Oil & Gas Inc.	1,240,314	$47.88M	1.7%	$38.60	—	COM	26883D108
—	Accelrys Inc.	3,695,943	$46.05M	1.6%	$12.46	—	COM	00430U103
—	ATMI Inc.	1,156,734	$39.34M	1.4%	$34.01	—	COM	00207R101
—	Xyratex Ltd.	2,422,518	$32.07M	1.1%	$13.25	—	COM	G98268108
—	NDZ US	2,254,151	$25.97M	0.9%	$11.52	—	COM	65563C105
—	Supertex Inc.	778,046	$25.66M	0.9%	$32.98	—	COM	868532102
VZ	Verizon Communications Inc.	407,653	$19.39M	0.7%	$25.99	-0.4%	COM	92343V104
—	TriQuint Semiconductor Inc.	1,386,131	$18.56M	0.7%	$13.39	—	COM	89674K103
—	Schawk Inc.	793,354	$15.86M	0.6%	$19.99	—	CL A	806373106
—	Ingersoll-Rand PLC	262,564	$15.03M	0.5%	$57.95	—	SHS	G47791101
—	Zale Corp.	694,895	$14.53M	0.5%	$20.91	—	COM	988858106
—	Actavis Inc.	61,002	$12.56M	0.4%	$179.91	—	SHS	G0083B108
—	Charter Communications	91,161	$11.23M	0.4%	$126.23	—	CL A NEW	16117M305
—	Juniper Networks Inc.	400,369	$10.31M	0.4%	$25.76	—	COM	48203R104
OIS	Oil States International Inc.	103,539	$10.21M	0.4%	$57.46	-3.6%	COM	678026105
AAL	American Airlines Group, Inc.	277,735	$10.16M	0.4%	$25.02	+28.3%	COM	02376R102
—	DigitalGlobe Inc.	342,134	$9.925M	0.4%	$29.01	—	COM NEW	25389M877
—	MHGC 2 3/8 10/15/14	10,000,000	$9.9M	0.4%	$0.98	—	NOTE 2.375% 10/1	61748WAB4
—	Coastal Contacts Inc.	867,300	$9.728M	0.3%	$11.22	—	COM NEW	19044R207
GNW	Genworth Financial Inc. - CL A	471,108	$8.352M	0.3%	$13.51	+18.8%	COM CL A	37247D106
—	Consol Energy Inc.	206,611	$8.254M	0.3%	$39.38	—	COM	20854P109
—	LIN Media LLC	261,016	$6.916M	0.2%	$26.50	—	CL A COM	532771102
GM	General Motors Co.	197,703	$6.804M	0.2%	$27.95	-1.9%	COM	37045V100
—	Dryships Inc.	6,809,000	$6.732M	0.2%	$0.99	—	NOTE 5.000% 12/0	262498AB4
NRG	NRG Energy Inc.	209,100	$6.649M	0.2%	$21.45	+3.1%	COM NEW	629377508
—	Talisman Energy Inc. (USD)	470,515	$4.695M	0.2%	$9.98	—	COM	87425E103
—	Noble Corp.	129,287	$4.232M	0.2%	$35.76	—	SHS USD	G65431101
—	YRC Worldwide Inc.	4,018,615	$4.179M	0.1%	$1.04	—	NOTE 10.000% 3/3	984249AB8
—	TIBCO Software Inc.	202,098	$4.106M	0.1%	$20.64	—	COM	88632Q103
—	Meritor Inc.	2,432,000	$3.711M	0.1%	$1.53	—	NOTE 7.875% 3/0	59001KAC4
—	Peabody Energy Corp.	224,444	$3.667M	0.1%	$17.07	—	COM	704549104
AGO	Assured Guaranty Ltd.	142,600	$3.61M	0.1%	$17.63	+9.3%	COM	G0585R106
—	Outerwall Inc.	49,604	$3.596M	0.1%	$67.26	—	COM	690070107
—	X 4 5/15/14	2,562,000	$2.579M	0.1%	$1.02	—	NOTE 4.000% 5/1	912909AE8
—	Cubist Pharmaceuticals Inc. (CVR)	2,990,735	$1.943M	0.1%	$1.35	—	RIGHT	229678123
MCK	McKesson Corp.	8,369	$1.477M	0.1%	$140.55	+13.9%	COM	58155Q103
—	Symantec Corp.	72,922	$1.456M	0.1%	$19.97	—	COM	871503108
ENTG	Entegris Inc.	97,989	$1.186M	0.0%	$11.16	0.0%	COM	29362U104
—	Stillwater Mining Co.	72,646	$1.075M	0.0%	$12.34	—	COM	86074Q102
—	Augusta Resource Corp.	288,900	$896K	0.0%	$3.10	—	COM NEW	050912203
LPX	Louisiana-Pacific Corp.	44,160	$744K	0.0%	$17.16	+2.2%	COM	546347105
—	Sirius XM Holdings Inc.	2,000,000	$610K	0.0%	—	—	Put	82968B953
—	Endeavor International Corp New	315,900	$600K	0.0%	—	—	Put	29258Y953
—	OCR 3.25 12/15/35 OCR	500,000	$533K	0.0%	$1.06	—	DBCV 3.250% 12/1	681904AL2
—	SPDR S&P 500	293,200	$378K	0.0%	—	—	Put	78463M957
—	RMBS 5 06/15/14	300,000	$302K	0.0%	$1.02	—	NOTE 5.000% 6/1	750917AC0
—	Liberty Media Corporation	101,600	$276K	0.0%	—	—	Call	531229952
—	AT&T	585,000	$148K	0.0%	—	—	Call	00206R902
—	Charter Communications	106,900	$114K	0.0%	—	—	Put	16117M955
—	Ingersoll-Rand PLC	146,000	$102K	0.0%	—	—	Put	G47791951
—	NLY 5 05/15/15	100,000	$102K	0.0%	$1.00	—	NOTE 5.000% 5/1	035710AB8
—	Energy XXI Limited	214,900	$94,000	0.0%	—	—	Call	G10082900
—	Juniper Networks Inc.	432,100	$87,000	0.0%	—	—	Put	48203R954
—	Alpha Natural Resources Inc.	20,142	$85,000	0.0%	$4.22	—	COM	02076X102
—	Actavis Inc.	26,700	$60,000	0.0%	—	—	Put	G0083B958
—	General Motors Co.	96,700	$58,000	0.0%	—	—	Put	37045V950
—	Cubist Pharmaceuticals Inc. (CVR)	153,843	$55,000	0.0%	$0.36	—	COM	229678107
—	Outerwall Inc.	146,400	$51,000	0.0%	—	—	Put	690070957
—	TIBCO Software Inc.	194,600	$43,000	0.0%	—	—	Put	88632Q953
—	Oil States International Inc.	72,900	$41,000	0.0%	—	—	Put	678026955
—	TriQuint Semiconductor Inc.	216,000	$27,000	0.0%	—	—	Put	89674K953
—	Sirius XM Holdings Inc.	741,600	$23,000	0.0%	—	—	Call	82968B903
—	Verizon Communications Inc.	194,800	$15,000	0.0%	—	—	Call	92343V904
—	Symantec Corp.	194,500	$13,000	0.0%	—	—	Put	871503958
—	Time Water Cable Inc.	17,700	$7,000	0.0%	—	—	Put	88732J957
—	Noble Corp.	73,000	$6,000	0.0%	—	—	Put	G65431951
—	Time Water Cable Inc.	24,300	$4,000	0.0%	—	—	Call	88732J907