FORM 13F

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

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

                              FORM 13F COVER PAGE

       Report for the Calendar Year or Quarter Ended        March 31, 2008

                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:       May 13, 2008
------------------------------------------------------------------------------


                                  Page 1 of 23


  Loews Corporation ("Loews"), by virtue of its approximately 90% 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 23


                            FORM 13F SUMMARY PAGE

                                REPORT SUMMARY

Number of Other Included Managers:  NONE.

Form 13F Information Table Entry Total:  251

Form 13F Information Table Value Total:  $16,712.3 (million)

List of Other Included Managers:  NONE.


                                  Page 3 of 23





                                                                                        
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     27,703     350,000   SH              Sole                     350,000

ACCENTURE LTD         Common   G1150G111     19,910     566,100   SH              Sole                     566,100
BERMUDA

AFFILIATED COMPUTER   Common   008190100     29,026     579,250   SH              Sole                     579,250
SERVICES

AFTERMARKET           Common   008318107        240      12,350   SH              Sole                      12,350
TECHNOLOGY CORP

ALCATEL-LUCENT-       Common   013904305      1,645     285,602   SH              Sole                     285,602
SPONSORED ADR

ALCOA INC             Common   013817101      4,688     130,000   SH              Sole                     130,000

ALLEGHENY ENERGY      Common   017361106        254       5,020   SH              Sole                       5,020

ALLSTATE CORP         Common   020002101      3,514      73,125   SH              Sole                      73,125

AMERICAN ELEC PWR     Common   025537101      1,807      43,400   SH              Sole                      43,400
INC

AMERICAN EQUITY INVT  Common   025676206        576      62,025   SH              Sole                      62,025
LIFE HL

AMERICAN EXPRESS CO   Common   025816109      1,127      25,780   SH              Sole                      25,780

AMERICAN              Common   026874107      3,374      78,000   SH              Sole                      78,000
INTERNATIONAL GROUP

AMERICAN NATL INS CO  Common   028591105      2,505      23,475   SH              Sole                      23,475
                                      --------------
                          TOTAL       $      96,369
                                      --------------


                                                      Page 4 of 23 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

AMERISOURCEBERGEN     Common   03073E105        760      18,550   SH              Sole                      18,550
CORP

AMGEN INC             Common   031162100     30,084     720,050   SH              Sole                     720,050

ANADARKO PETE CORP    Common   032511107     10,085     160,000   SH              Sole                     160,000

ANHEUSER BUSCH COS    Common   035229103        558      11,750   SH              Sole                      11,750
INC

APACHE CORP           Common   037411105      2,900      24,000   SH              Sole                      24,000

APEX SILVER MINES LTD Common   G04074103      2,150     177,406   SH              Sole                     177,406


AQUILA INC            Common   03840P102        956     297,750   SH              Sole                     297,750

ARGO GROUP            Common   G0464B107        369      10,375   SH              Sole                      10,375
INTERNATIONAL

ARVINMERITOR INC      Common   043353101        265      21,150   SH              Sole                      21,150

AURIZON MINES LTD     Common   05155P106      2,529     536,305   SH              Sole                     536,305

AVIS BUDGET GROUP     Common   053774105     10,442     983,200   SH              Sole                     983,200
INC

BANK NEW YORK         Common   064058100      2,620      62,786   SH              Sole                      62,786
MELLON CORPORATION,
THE

BANK OF AMERICA       Common   060505104     10,971     289,400   SH              Sole                     289,400
CORPORATION
                                      --------------
                          TOTAL       $      74,689
                                      --------------


                                                      Page 5 of 23 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     15,530     357,426   SH              Sole                     357,426

BEARINGPOINT INC      Common   074002106         48      28,825   SH              Sole                      28,825

BLACK & DECKER CORP   Common   091797100      3,166      47,900   SH              Sole                      47,900

BLOUNT INTERNATIONAL  Common   095180105        231      18,700   SH              Sole                      18,700
INC

BOARDWALK PIPELINE    Common   096627104  1,310,633  53,256,122   SH              Sole                  53,256,122
PARTNERS

BOWNE & CO INC        Common   103043105        202      13,275   SH              Sole                      13,275

BRISTOL MYERS SQUIBB  Common   110122108        775      36,400   SH              Sole                      36,400
CO

BRUSH ENGINEERED      Common   117421107      4,210     164,000   SH              Sole                     164,000
MATERIALS

CAMECO CORP           Common   13321L108      7,412     225,000   SH              Sole                     225,000

CAPITAL ONE FINL CORP Common   14040H105      1,552      31,525   SH              Sole                      31,525

CARTER INC            Common   146229109        285      17,625   SH              Sole                      17,625

CATERPILLAR INC DEL   Common   149123101        877      11,200   SH              Sole                      11,200

CBS CORP              Common   124857202        552      25,000   SH              Sole                      25,000
                                      --------------
                          TOTAL       $   1,345,473
                                      --------------


                                                      Page 6 of 23 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

CHEMICAL FINANCIAL    Common   163731102        545      22,850   SH              Sole                      22,850
CORP

CIBER INC             Common   17163B102        446      90,975   SH              Sole                      90,975

CIT GROUP INC         Common   125581108      3,792     320,000   SH              Sole                     320,000

CITIGROUP INC         Common   172967101     15,120     705,880   SH              Sole                     705,880

CLEVELAND CLIFFS INC  Common   185896107      8,387      70,000   SH              Sole                      70,000

CNA FINL CORP         Common   126117100  6,227,867 241,483,773   SH              Sole                 241,483,773

COCA COLA CO          Common   191216100        219       3,600   SH              Sole                       3,600

COMCAST CORP NEW      Common   20030N101        864      44,715   SH              Sole                      44,715

COMCAST CORP NEW      Common   20030N200     22,088   1,164,350   SH              Sole                   1,164,350

COMERICA INC          Common   200340107        422      12,025   SH              Sole                      12,025

COMPUTER ASSOC INTL   Common   12673P105      1,019      45,272   SH              Sole                      45,272
INC

CONEXANT SYSTEMS      Common   207142100        877   1,512,000   SH              Sole                   1,512,000
                                      --------------
                          TOTAL       $   6,281,646
                                      --------------


                                                       Page 7 of 23 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

CONSECO INC           Common   208464883        286      28,075   SH              Sole                      28,075

CONSOL ENERGY INC     Common   20854P109     19,395     280,321   SH              Sole                     280,321

CON-WAY INC           Common   205944101        221       4,475   SH              Sole                       4,475

COUNTRYWIDE           Common   222372104        203      36,875   SH              Sole                      36,875
FINANCIAL CORP

COVAD                 Common   222814204      1,604   1,638,000   SH              Sole                   1,638,000
COMMUNICATIONS

D R HORTON INC        Common   23331A109      4,174     265,000   SH              Sole                     265,000

DEL MONTE FOODS CO    Common   24522P103        411      43,100   SH              Sole                      43,100

DELPHI FINL GROUP INC Common   247131105        272       9,293   SH              Sole                       9,293

DIAGEO P L C          Common   25243Q205        512       6,300   SH              Sole                       6,300

DIAMOND OFFSHORE      Common   25271C102  8,160,178  70,104,620   SH              Sole                  70,104,620
DRILLING INC

DIAMONDS TR           Common   252787106     45,900     375,000   SH              Sole                     375,000

DISCOVERY HOLDING     Common   25468Y107      2,122     100,000   SH              Sole                     100,000
CO-A W/I

DISNEY WALT CO        Common   254687106      3,452     110,000   SH              Sole                     110,000
                                      --------------
                          TOTAL       $   8,238,730
                                      --------------


                                                      Page 8 of 23 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     20,890     500,000   SH              Sole                     500,000

DU PONT E I DE        Common   263534109      1,870      40,000   SH              Sole                      40,000
NEMOURS & CO

DYNEGY INC NEW        Common   26817G102     21,212   2,688,450   SH              Sole                   2,688,450

E M C CORP MASS       Common   268648102        514      35,850   SH              Sole                      35,850

ELECTRONIC DATA SYS   Common   285661104      2,331     140,000   SH              Sole                     140,000
NEW

ENSCO INTL INC        Common   26874Q100      4,383      70,000   SH              Sole                      70,000

EXELON CORP           Common   30161N101      1,057      13,000   SH              Sole                      13,000

EXETER RESOURCE       Common   301835104        831     191,100   SH              Sole                     191,100

EXPRESSJET HOLDINGS   Common   30218U108         47      17,975   SH              Sole                      17,975
INC

FBL FINANCIAL GROUP   Common   30239F106        323      11,350   SH              Sole                      11,350
INC-CL A

FEDERAL HOME LN MTG   Common   313400301      1,672      66,050   SH              Sole                      66,050
CORP

FEDERAL NATL MTG      Common   313586109      1,669      63,400   SH              Sole                      63,400
ASSN

FINCL SELECT SECTOR   Common   81369Y605      3,109     125,000   SH              Sole                     125,000
SPDR TR
                                      --------------
                          TOTAL       $      59,908
                                      --------------


                                                      Page 9 of 23 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

FIRST AMERN CORP CALIFCommon   318522307        342      10,075   SH              Sole                      10,075

FOMENTO ECONOMICO     Common   344419106        371       8,880   SH              Sole                       8,880
MEXICANO SA

GAMMON GOLD INC       Common   36467T106      2,249     299,500   SH              Sole                     299,500

GENERAL ELEC CO       Common   369604103      2,745      74,181   SH              Sole                      74,181

GOLDCORP INC NEW      Common   380956409      2,325      60,000   SH              Sole                      60,000

GOLDEN STAR           Common   38119T104      1,737     507,820   SH              Sole                     507,820
RESOURCES LTD

GOOGLE INC-CL A       Common   38259P508        344         780   SH              Sole                         780

GRIFFON CORPORATION   Common   398433102        451      52,425   SH              Sole                      52,425

HANGER ORTHOPEDIC     Common   41043F208        289      26,800   SH              Sole                      26,800
GROUP INC

HARTFORD FINANCIAL    Common   416515104      3,410      45,000   SH              Sole                      45,000
SVCS GRP

HOME DEPOT INC        Common   437076102      6,592     235,675   SH              Sole                     235,675

IAMGOLD CORPORATION   Common   450913108      2,629     354,633   SH              Sole                     354,633

IKANOS                Common   45173E105      1,403     307,000   SH              Sole                     307,000
COMMUNICATIONS INC
                                      --------------
                          TOTAL       $      24,887
                                      --------------


                                                      Page 10 of 23 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        223     571,886   SH              Sole                     571,886

IMS HEALTH INC        Common   449934108      5,042     240,000   SH              Sole                     240,000

INDYMAC BANCORP INC   Common   456607100         65      13,200   SH              Sole                      13,200

INGERSOLL-RAND        Common   G4776G101      1,526      34,240   SH              Sole                      34,240
COMPANY LTD

INTERNATIONAL         Common   459200101      9,583      83,230   SH              Sole                      83,230
BUSINESS MACHS

IPC HLDGS LTD         Common   G4933P101        546      19,500   SH              Sole                      19,500

ISHARES INC MSCI      Common   464286848     37,110   3,000,000   SH              Sole                   3,000,000
JAPAN

J P MORGAN CHASE & CO Common   46625H100        912      21,225   SH              Sole                      21,225

JAGUAR MINING INC     Common   47009M103      1,601     147,000   SH              Sole                     147,000

JDS UNIPHASE CORP     Common   46612J507      4,687     350,000   SH              Sole                     350,000

JOHNSON & JOHNSON     Common   478160104      2,068      31,875   SH              Sole                      31,875

JONES APPAREL GROUP   Common   480074103        381      28,400   SH              Sole                      28,400
INC

JOY GLOBAL INC        Common   481165108     13,032     200,000   SH              Sole                     200,000
                                      --------------
                          TOTAL       $      76,776
                                      --------------


                                                      Page 11 of 23 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

KB HOME               Common   48666K109        618      25,000   SH              Sole                      25,000

KELLY SERVICES INC -  Common   488152208        612      29,775   SH              Sole                      29,775
CL A

KIMBER RESOURCES INC  Common   49435N101      1,019     641,515   SH              Sole                     641,515

L-3 COMMUNICATIONS    Common   502424104        432       3,950   SH              Sole                       3,950
HLDGS INC

LEAR CORP             Common   521865105      1,677      64,725   SH              Sole                      64,725

LEHMAN BROS HLDGS INC Common   524908100        620      16,475   SH              Sole                      16,475

LEXMARK INTL NEW      Common   529771107      5,069     165,000   SH              Sole                     165,000

LIBERTY MEDIA CORP    Common   53071M500      1,358      60,000   SH              Sole                      60,000
ENT SER A

LIBERTY GLOBAL INC-A  Common   530555101      3,203      93,991   SH              Sole                      93,991

LIBERTY GLOBAL INC-C  Common   530555309      1,399      43,068   SH              Sole                      43,068

LIBERTY MEDIA-        Common   53071M104      1,211      75,000   SH              Sole                      75,000
INTERACTIVE A

LINCOLN NATL CORP IND Common   534187109      3,900      75,000   SH              Sole                      75,000

LOUISIANA-PACIFIC CORPCommon   546347105      4,002     436,000   SH              Sole                     436,000
                                      --------------
                          TOTAL       $      25,120
                                      --------------


                                                      Page 12 of 23 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

LOWES COS INC         Common   548661107      6,093     265,600   SH              Sole                     265,600

MAGNA INTL INC        Common   559222401        895      12,400   SH              Sole                      12,400

MEDIACOM              Common   58446K105        866     200,000   SH              Sole                     200,000
COMMUNICATIONS CORP

MEDTRONIC INC         Common   585055106      2,902      60,000   SH              Sole                      60,000

METALLICA RESOURCES   Common   59125J104      2,572     436,358   SH              Sole                     436,358
INC

MI DEVELOPMENTS INC-  Common   55304X104        554      19,300   SH              Sole                      19,300
CLASS A

MICROSOFT CORP        Common   594918104     40,926   1,442,080   SH              Sole                   1,442,080

MIDWAY GOLD CORP      Common   598153104        568     197,679   SH              Sole                     197,679

MINDSPEED             Common   602682106        535   1,114,000   SH              Sole                   1,114,000
TECHNOLOGIES INC

MINEFINDERS CORP      Common   602900102      1,228     100,811   SH              Sole                     100,811

MIRANT CORP           Common   60467R100      3,639     100,000   SH              Sole                     100,000

MORGAN STANLEY        Common   617446448        908      19,875   SH              Sole                      19,875

MOTOROLA INC          Common   620076109        999     107,460   SH              Sole                     107,460
                                      --------------
                          TOTAL       $      62,685
                                      --------------


                                                      Page 13 of 23 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

NEW GOLD INC          Common   644535106      2,628     375,451   SH              Sole                     375,451

NEWS CORP INC         Common   65248E203      4,284     225,000   SH              Sole                     225,000

NEWS CORP INC         Common   65248E104      4,695     250,414   SH              Sole                     250,414

NORTHERN TR CORP      Common   665859104        592       8,900   SH              Sole                       8,900

NORTHROP GRUMMAN      Common   666807102      1,255      16,125   SH              Sole                      16,125
CORP

NORTHWEST AIRLINES    Common   667280408        166      18,420   SH              Sole                      18,420
CORP

NORTHWESTERN CORP     Common   668074305      4,094     168,000   SH              Sole                     168,000

NRG ENERGY INC        Common   629377508      9,212     236,260   SH              Sole                     236,260

OCCIDENTAL            Common   674599105      5,122      70,000   SH              Sole                      70,000
PETROLEUM CORP

OLD REP INTL CORP     Common   680223104        481      37,250   SH              Sole                      37,250

ORACLE CORP           Common   68389X105     11,736     600,000   SH              Sole                     600,000

OWENS CORNING INC     Common   690742101      3,626     200,000   SH              Sole                     200,000
                                      --------------
                          TOTAL       $      47,891
                                      --------------


                                                      Page 14 of 23 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

PEABODY ENERGY        Common   704549104     12,750     250,000   SH              Sole                     250,000

PENNEY J C INC        Common   708160106        371       9,825   SH              Sole                       9,825

PFIZER INC            Common   717081103      2,728     130,350   SH              Sole                     130,350

PHARMACEUTICAL        Common   71712A206      3,313      47,500   SH              Sole                      47,500
HLDRS TR

PHH CORP              Common   693320202        380      21,825   SH              Sole                      21,825

PIKE ELECTRIC CORP    Common   721283109        437      31,375   SH              Sole                      31,375

PIONEER NAT RES CO    Common   723787107      4,421      90,000   SH              Sole                      90,000

PLANTRONICS INC NEW   Common   727493108        356      18,450   SH              Sole                      18,450

POPULAR INC           Common   733174106        587      50,350   SH              Sole                      50,350

PRIMUS GUARANTY LTD   Common   G72457107      1,432     400,000   SH              Sole                     400,000

PULTE HOMES INC       Common   745867101      1,455     100,000   SH              Sole                     100,000

RADIO ONE INC         Common   75040P405         77      50,700   SH              Sole                      50,700
                                      --------------
                          TOTAL       $      28,307
                                      --------------


                                                      Page 15 of 23 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

RAYTHEON CO           Common   755111507      4,523      70,000   SH              Sole                      70,000

REGIS CORP            Common   758932107        515      18,725   SH              Sole                      18,725

RENAISSANCE RE        Common   G7496G103      1,344      25,900   SH              Sole                      25,900
HLDGS LTD

RENT A CTR INC NEW    Common   76009N100      1,568      85,425   SH              Sole                      85,425

RF MICRODEVICES INC   Common   749941100        870     327,000   SH              Sole                     327,000

ROCKWELL              Common   773903109      1,148      20,000   SH              Sole                      20,000
AUTOMATION INC

ROWAN COS INC         Common   779382100      1,853      45,000   SH              Sole                      45,000

SAIC INC              Common   78390X101      2,789     150,000   SH              Sole                     150,000

SANGAMO BIOSCIENCES   Common   800677106        326      32,097   SH              Sole                      32,097
INC

SARA LEE CORP         Common   803111103        349      24,945   SH              Sole                      24,945

SCANA CORP NEW        Common   80589M102        527      14,405   SH              Sole                      14,405

SCHWEITZER-MAUDUIT    Common   808541106        506      21,875   SH              Sole                      21,875
INTL INC

SEAGATE TECHNOLOGY    Common   G7945J104      1,256      60,000   SH              Sole                      60,000
                                      --------------
                          TOTAL       $      17,574
                                      --------------


                                                      Page 16 of 23 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

SEALY CORP            Common   812139301        310      40,775   SH              Sole                      40,775

SEMPRA ENERGY         Common   816851109      4,983      93,525   SH              Sole                      93,525

SILICON IMAGE INC     Common   82705T102      1,804     360,000   SH              Sole                     360,000

SLM CORP              Common   78442P106      9,205     599,700   SH              Sole                     599,700

SMURFIT-STONE         Common   832727101      2,164     281,000   SH              Sole                     281,000
CONTAINER CORP

SPRINT NEXTEL         Common   852061100        682     101,950   SH              Sole                     101,950
CORPORATION

STEWART INFORMATION   Common   860372101        212       7,575   SH              Sole                       7,575
SERVICES

STILLWATER MNG CO     Common   86074Q102      2,450     158,373   SH              Sole                     158,373

TALISMAN ENERGY INC   Common   87425E103      5,045     285,000   SH              Sole                     285,000

TARGET CORP           Common   87612E106      5,068     100,000   SH              Sole                     100,000

TECH DATA CORP        Common   878237106        498      15,175   SH              Sole                      15,175

TEXTRON INC           Common   883203101        432       7,800   SH              Sole                       7,800

THORATEC CORP         Common   885175307      6,002     420,000   SH              Sole                     420,000
                                      --------------
                          TOTAL       $      38,855
                                      --------------


                                                      Page 17 of 23 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

TIME WARNER CABLE-A   Common   88732J108      1,474      59,000   SH              Sole                      59,000

TIME WARNER INC       Common   887317105      2,804     200,000   SH              Sole                     200,000

TITAN INTERNATIONAL INCommon   88830M102     13,315     435,000   SH              Sole                     435,000

TJX COS INC NEW       Common   872540109        919      27,800   SH              Sole                      27,800

TORCHMARK CORP        Common   891027104        980      16,300   SH              Sole                      16,300

TREX COMPANY INC      Common   89531P105      5,538     702,825   SH              Sole                     702,825

TYCO ELECTRONICS      Common   G9144P105      8,837     257,501   SH              Sole                     257,501
LTD-W/I

TYCO INTL LTD NEW     Common   G9143X208     13,215     300,001   SH              Sole                     300,001

ULTRAPETROL           Common   P94398107      2,419     236,208   SH              Sole                     236,208
(BAHAMAS) LTD

UNILEVER N V          Common   904784709        875      25,950   SH              Sole                      25,950

UNITED AMERICA        Common   90933T109        607      31,525   SH              Sole                      31,525
INDEMNITY-A

UNITED STATIONERS INC Common   913004107        318       6,675   SH              Sole                       6,675

UNIVERSAL CORP VA     Common   913456109        378       5,775   SH              Sole                       5,775
                                      --------------
                          TOTAL       $      51,679
                                      --------------


                                                      Page 18 of 23 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

VALERO ENERGY CORP    Common   91913Y100      3,560      72,500   SH              Sole                      72,500
NEW

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

VODAFONE GROUP PLC    Common   92857W209      4,648     157,500   SH              Sole                     157,500
NEW

WAL MART STORES INC   Common   931142103      1,031      19,575   SH              Sole                      19,575

WELLS FARGO & CO      Common   949746101      2,910     100,000   SH              Sole                     100,000

WESTERN DIGITAL CORP  Common   958102105      9,734     360,000   SH              Sole                     360,000

WHIRLPOOL CORP        Common   963320106      1,559      17,968   SH              Sole                      17,968

WHITING PETE CORP     Common   966387102      1,940      30,000   SH              Sole                      30,000
NEW

WHOLE FOODS MKT INC   Common   966837106      3,297     100,000   SH              Sole                     100,000

WIDEPOINT CORP        Common   967590100      1,260   1,000,000   SH              Sole                   1,000,000

WILLIAMS COS INC DEL  Common   969457100      1,075      32,600   SH              Sole                      32,600

WILLIAMS PIPELINE     Common   96950K103      3,445     197,400   SH              Sole                     197,400
PARTNERS

WISCONSIN ENERGY      Common   976657106        856      19,450   SH              Sole                      19,450
CORP

WYETH                 Common   983024100      1,400      33,520   SH              Sole                      33,520
                                      --------------
                          TOTAL       $      37,084
                                      --------------


                                                      Page 19 of 23 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

XERIUM TECHNOLOGIES   Common   98416J100        645     500,000   SH              Sole                     500,000
INC

XEROX CORP            Common   984121103     26,897   1,796,700   SH              Sole                   1,796,700

XL CAP LTD            Common   G98255105        759      25,675   SH              Sole                      25,675

ZHONE TECHNOLOGIES    Common   98950P108      1,296   1,322,000   SH              Sole                   1,322,000
INC

ZOLTEK COMPANIES INC  Common   98975W104     19,094     720,000   SH              Sole                     720,000
                                    ---------------
                        TOTAL       $        48,691
                                    ---------------


                                                      Page 20 of 23 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   88579Y901      4,749      60,000   SH     Call     Sole                      60,000

3M CO                 Common   88579Y951      4,749      60,000   SH     Put      Sole                      60,000

ALLSTATE CORP         Common   020002951      4,806     100,000   SH     Put      Sole                     100,000

AUTOMATIC DATA        Common   053015953      4,239     100,000   SH     Put      Sole                     100,000
PROCESSING

BANK NEW YORK         Common   064058950      1,310      31,400   SH     Put      Sole                      31,400
MELLON CORPORATION,
THE

BARRICK GOLD CORP     Common   067901908      6,083     140,000   SH     Call     Sole                     140,000

BARRICK GOLD CORP     Common   067901958      4,345     100,000   SH     Put      Sole                     100,000

BEAR STEARNS COS INC  Common   073902958      1,049     100,000   SH     Put      Sole                     100,000

BED BATH & BEYOND     Common   075896950      2,950     100,000   SH     Put      Sole                     100,000
INC

BLACK & DECKER CORP   Common   091797950      3,966      60,000   SH     Put      Sole                      60,000

BROCADE               Common   111621906      1,460     200,000   SH     Call     Sole                     200,000
COMMUNICATIONS SYS
INC

BROCADE               Common   111621956      1,460     200,000   SH     Put      Sole                     200,000
COMMUNICATIONS SYS
INC

CLEVELAND CLIFFS INC  Common   185896957     11,982     100,000   SH     Put      Sole                     100,000
                                      --------------
                          TOTAL       $      53,148
                                      --------------


                                                      Page 21 of 23 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

D R HORTON INC        Common   23331A959      1,260      80,000   SH     Put      Sole                      80,000

DISNEY WALT CO        Common   254687956      5,648     180,000   SH     Put      Sole                     180,000

DU PONT E I DE        Common   263534959      1,870      40,000   SH     Put      Sole                      40,000
NEMOURS & CO

DYNEGY INC NEW        Common   26817G902        631      80,000   SH     Call     Sole                      80,000

DYNEGY INC NEW        Common   26817G952        631      80,000   SH     Put      Sole                      80,000

FORD MTR CO DEL       Common   345370900     12,355   2,160,000   SH     Call     Sole                   2,160,000

GENERAL ELEC CO       Common   369604953      3,701     100,000   SH     Put      Sole                     100,000

GOLDMAN SACHS         Common   38141G904      3,308      20,000   SH     Call     Sole                      20,000
GROUP INC

HOME DEPOT INC        Common   437076952      5,594     200,000   SH     Put      Sole                     200,000

JDS UNIPHASE CORP     Common   46612J957      4,687     350,000   SH     Put      Sole                     350,000

MEDTRONIC INC         Common   585055956      2,902      60,000   SH     Put      Sole                      60,000

MERRILL LYNCH & CO    Common   590188958      4,074     100,000   SH     Put      Sole                     100,000
INC

MICROSOFT CORP        Common   594918954      3,406     120,000   SH     Put      Sole                     120,000
                                      --------------
                          TOTAL       $      50,067
                                      --------------


                                                      Page 22 of 23 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

MOODY'S CORP          Common   615369955      2,703      77,600   SH     Put      Sole                      77,600

MOTOROLA INC          Common   620076909      2,232     240,000   SH     Call     Sole                     240,000

NEWMONT MINING CORP   Common   651639906      6,342     140,000   SH     Call     Sole                     140,000

OWENS CORNING INC     Common   690742951        725      40,000   SH     Put      Sole                      40,000

PFIZER INC            Common   717081953      1,289      61,600   SH     Put      Sole                      61,600

SEAGATE TECHNOLOGY    Common   G7945J954      3,979     190,000   SH     Put      Sole                     190,000

THE ST JOE COMPANY    Common   790148950      4,293     100,000   SH     Put      Sole                     100,000

UNITED PARCEL SERVICE Common   911312956      5,842      80,000   SH     Put      Sole                      80,000
INC

UNITED STATES STL     Common   912909958      7,612      60,000   SH     Put      Sole                      60,000
CORP NEW

VULCAN MATERIALS CO   Common   929160959      6,640     100,000   SH     Put      Sole                     100,000

WELLS FARGO & CO      Common   949746951      2,910     100,000   SH     Put      Sole                     100,000

WHOLE FOODS MKT INC   Common   966837956      3,956     120,000   SH     Put      Sole                     120,000

ZOLTEK COMPANIES INC  Common   98975W904      1,061      40,000   SH     Call     Sole                      40,000

ZOLTEK COMPANIES INC  Common   98975W954      3,182     120,000   SH     Put      Sole                     120,000
                                      -------------
                          TOTAL       $      52,766
                                      -------------
                AGGREGATE TOTAL       $  16,712,345
                                      =============


                                                      Page 23 of 23 Pages