The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
AAON INC cs 000360206 8,477 252,884 SH   SOLE   232,609 0 20,275
ACCO BRANDS CORP cs 00081T108 513 80,000 SH   SOLE   80,000 0 0
ADTRAN INC cs 00738A106 508 22,500 SH   SOLE   22,500 0 0
ADVANCED ENERGY INDS INC cs 007973100 15,170 788,047 SH   SOLE   735,937 0 52,110
AFLAC INC. cs 001055102 18,675 300,000 SH   SOLE   300,000 0 0
ALCOA INC cs 013817101 474 31,830 SH   SOLE   31,650 0 180
ALLEGHENY TECHNOLOGIES INC. cs 01741R102 467 10,350 SH   SOLE   10,350 0 0
ASSURED GUARANTY LTD cs G0585R106 485 19,800 SH   SOLE   19,800 0 0
AVON PRODUCTS INC cs 054303102 9,034 618,347 SH   SOLE   618,347 0 0
BANK OF NY MELLON cs 064058100 748 19,965 SH   SOLE   19,710 0 255
BEBE STORES INC cs 075571109 9,276 3,041,370 SH   SOLE   2,784,150 0 257,220
CA INC cs 12673p105 16,376 569,785 SH   SOLE   526,680 0 43,105
CALLAWAY GOLF CO cs 131193104 20,580 2,473,518 SH   SOLE   2,280,253 0 193,265
CARNIVAL CORP cs 143658300 26,844 713,000 SH   SOLE   713,000 0 0
CEDAR REALTY TRUST INC cs 150602209 14,349 2,295,903 SH   SOLE   2,062,083 0 233,820
CHESAPEAKE ENERGY CORP cs 165167107 20,824 670,000 SH   SOLE   670,000 0 0
CHEVRON CORPORATION cs 166764100 594 4,550 SH   SOLE   3,725 0 825
CHRISTOPHER & BANKS CORP cs 171046105 597 68,100 SH   SOLE   64,900 0 3,200
CITY HOLDING CO cs 177835105 11,148 247,081 SH   SOLE   218,260 0 28,821
CLIFFS NATURAL RESOURCES INC cs 18683K101 21,100 1,402,000 SH   SOLE   1,402,000 0 0
CORNING INC cs 219350105 28,133 1,281,665 SH   SOLE   1,281,265 0 400
CROCS INC cs 227046109 16,047 1,067,675 SH   SOLE   1,007,020 0 60,655
CRYOLIFE INC COM cs 228903100 7,250 810,080 SH   SOLE   810,080 0 0
DEVON ENERGY CORPORATION cs 25179M103 20,387 256,760 SH   SOLE   256,660 0 100
DIAMOND OFFSHORE DRILLING cs 25271C102 14,140 284,917 SH   SOLE   284,917 0 0
DIANA SHIPPING INC cs y2066g104 17,190 1,578,510 SH   SOLE   1,449,650 0 128,860
DIME COMMUNITY BANCSHRS cs 253922108 17,544 1,111,077 SH   SOLE   1,027,056 0 84,021
EMULEX CORP cs 292475209 241 42,340 SH   SOLE   15,065 0 27,275
ENCORE WIRE CORP cs 292562105 14,354 292,707 SH   SOLE   266,572 0 26,135
ENNIS INC cs 293389102 39,427 2,583,701 SH   SOLE   2,513,364 0 70,337
ESCALERA RES CO cs 296064108 237 89,809 SH   SOLE   89,809 0 0
EVOLUTION PETROLEUM CORP cs 30049a107 5,211 475,922 SH   SOLE   417,722 0 58,200
EXELON CORPORATION cs 30161n101 25,880 709,440 SH   SOLE   709,210 0 230
FELCOR LODGING TRUST INC cs 31430F101 6,554 623,606 SH   SOLE   623,606 0 0
FIRSTENERGY CORP cs 337932107 29,403 846,860 SH   SOLE   846,675 0 185
FLIR SYSTEMS INC cs 302445101 25,930 746,625 SH   SOLE   746,625 0 0
FREIGHTCAR AMERICA cs 357023100 18,214 727,415 SH   SOLE   668,110 0 59,305
GAP INC cs 364760108 286 6,875 SH   SOLE   6,875 0 0
GENESCO INC cs 371532102 411 5,000 SH   SOLE   5,000 0 0
GLAXOSMITHKLINE cs 37733w105 19,149 358,054 SH   SOLE   337,354 0 20,700
GRAHAM CORP cs 384556106 14,292 410,569 SH   SOLE   378,499 0 32,070
GRANITE CONST INC cs 387328107 18,994 527,898 SH   SOLE   491,530 0 36,368
GULF ISLAND FABRICATION cs 402307102 11,635 540,674 SH   SOLE   511,976 0 28,698
HALLADOR ENERGY CO cs 40609P105 7,659 807,060 SH   SOLE   722,170 0 84,890
HALLMARK FINL SVCS INC cs 40624q203 18,408 1,712,363 SH   SOLE   1,569,054 0 143,309
HARMAN INTERNATIONAL cs 413086109 5,658 52,670 SH   SOLE   29,675 0 22,995
HARTFORD FINANCIAL SVCS GRP cs 416515104 26,392 737,000 SH   SOLE   737,000 0 0
HELMERICH & PAYNE cs 423452101 444 3,825 SH   SOLE   3,825 0 0
HEWLETT-PACKARD COMPANY cs 428236103 261 7,740 SH   SOLE   7,740 0 0
HOOKER FURNITURE CORP cs 439038100 13,594 842,239 SH   SOLE   740,334 0 101,905
HOUSTON WIRE AND CABLE cs 44244k109 13,048 1,051,418 SH   SOLE   971,363 0 80,055
HUNTINGTON BANCSHARES INC. cs 446150104 23,134 2,425,000 SH   SOLE   2,425,000 0 0
INTEL CORP cs 458140100 31,979 1,034,917 SH   SOLE   977,672 0 57,245
INTREPID POTASH cs 46121Y102 18,681 1,114,591 SH   SOLE   1,018,606 0 95,985
ITRON INC cs 465741106 444 10,950 SH   SOLE   10,950 0 0
JACOBS ENGINEERING GROUP, INC cs 469814107 559 10,500 SH   SOLE   10,500 0 0
JOY GLOBAL INC cs 481165108 26,972 438,000 SH   SOLE   438,000 0 0
JPMORGAN CHASE & CO cs 46625h100 3,475 60,305 SH   SOLE   36,975 0 23,330
KMG INC cs 482564101 18,029 1,002,727 SH   SOLE   942,118 0 60,609
KNOLL INC cs 498904200 14,996 865,292 SH   SOLE   809,949 0 55,343
LANDEC CORP cs 514766104 16,419 1,314,560 SH   SOLE   1,223,670 0 90,890
LEAPFROG ENTERPRISES cs 52186n106 13,759 1,872,020 SH   SOLE   1,737,225 0 134,795
MACK CALI REALTY CORP cs 554489104 27,277 1,269,895 SH   SOLE   1,269,620 0 275
MCGRATH RENTCORP cs 580589109 17,813 484,702 SH   SOLE   448,372 0 36,330
MERCURY SYSTEMS INC cs 589378108 10,847 956,553 SH   SOLE   877,588 0 78,965
METHODE ELECTRNCS INC cs 591520200 45,558 1,192,294 SH   SOLE   1,153,042 0 39,252
MICREL INC cs 594793101 18,389 1,630,215 SH   SOLE   1,511,475 0 118,740
MICROSOFT CORP cs 594918104 24,388 584,854 SH   SOLE   584,570 0 284
MODUSLINK GLOBAL SOLUTIONS cs 60786L107 4,454 1,191,018 SH   SOLE   1,066,008 0 125,010
MOSAIC CO cs 61945c103 20,103 406,525 SH   SOLE   406,525 0 0
MYRIAD GENETICS INC cs 62855j104 25,110 645,165 SH   SOLE   592,710 0 52,455
NEWELL RUBBERMAID INC cs 651229106 12,706 410,000 SH   SOLE   410,000 0 0
NEWPARK RESOURCES INC cs 651718504 17,890 1,435,829 SH   SOLE   1,328,664 0 107,165
NUCOR CORP cs 670346105 546 11,085 SH   SOLE   11,085 0 0
OLYMPIC STEEL INC cs 68162k106 14,602 589,999 SH   SOLE   540,394 0 49,605
OSIRIS THERAPEUTICS INC cs 68827R108 540 34,600 SH   SOLE   34,600 0 0
PC-TEL INC cs 69325Q105 14,976 1,851,167 SH   SOLE   1,851,167 0 0
PEABODY ENERGY CORP cs 704549104 24,935 1,525,100 SH   SOLE   1,525,100 0 0
PITNEY BOWES INC cs 724479100 30,848 1,116,880 SH   SOLE   1,037,545 0 79,335
PLEXUS CORP cs 729132100 10,885 251,445 SH   SOLE   230,985 0 20,460
PPL CORP cs 69351T106 27,057 761,520 SH   SOLE   761,335 0 185
QUEST DIAGNOSTICS INC cs 74834L100 27,271 464,655 SH   SOLE   464,655 0 0
RELIANCE STEEL & ALUMINUM cs 759509102 317 4,300 SH   SOLE   4,300 0 0
ROCKY BRANDS INC cs 774515100 3,144 220,949 SH   SOLE   220,949 0 0
RUDOLPH TECHNOLOGIES INC cs 781270103 13,625 1,379,040 SH   SOLE   1,245,826 0 133,214
RUTH'S HOSPITALITY GROUP INC cs 783332109 12,221 989,580 SH   SOLE   902,305 0 87,275
SCANSOURCE INC cs 806037107 13,677 359,155 SH   SOLE   328,955 0 30,200
SILICON IMAGE INC cs 82705T102 12,905 2,560,428 SH   SOLE   2,321,023 0 239,405
SPARTAN MOTORS INC cs 846819100 12,456 2,743,545 SH   SOLE   2,548,920 0 194,625
STILLWATER MINING CO cs 86074Q102 23,215 1,322,800 SH   SOLE   1,217,445 0 105,355
SUNCOR ENERGY INC cs 867224107 14,304 335,550 SH   SOLE   335,550 0 0
SUPERIOR INDUSTRIES cs 868168105 21,572 1,046,166 SH   SOLE   1,046,166 0 0
SYMANTEC CORP cs 871503108 23,747 1,037,000 SH   SOLE   1,037,000 0 0
SYNAPTICS INC cs 87157d109 18,209 200,894 SH   SOLE   184,854 0 16,040
TESSERA TECHNOLOGIES INC cs 88164L100 26,955 1,220,783 SH   SOLE   1,220,783 0 0
THOR INDUSTRIES INC cs 885160101 357 6,270 SH   SOLE   6,270 0 0
TIDEWATER INC cs 886423102 13,893 247,424 SH   SOLE   247,114 0 310
UNISYS CORP cs 909214306 18,257 737,947 SH   SOLE   689,507 0 48,440
UNUM GROUP cs 91529y106 1,757 50,540 SH   SOLE   29,985 0 20,555
US ECOLOGY INC cs 91732j102 18,100 369,766 SH   SOLE   351,861 0 17,905
VAALCO ENERGY INC cs 91851c201 19,130 2,645,959 SH   SOLE   2,463,696 0 182,263
VONAGE HOLDINGS CORP cs 92886t201 17,354 4,627,750 SH   SOLE   4,159,525 0 468,225
WARREN RESOURCES INC cs 93564A100 8,080 1,303,287 SH   SOLE   1,212,237 0 91,050
WELLS FARGO & CO cs 949746101 802 15,265 SH   SOLE   15,265 0 0
WESTMORELAND COAL CO cs 960878106 968 26,693 SH   SOLE   26,693 0 0
WINNEBAGO INDUSTRIES cs 974637100 8,399 333,576 SH   SOLE   306,136 0 27,440
XEROX CORP cs 984121103 6,546 526,200 SH   SOLE   526,200 0 0
CHESAPEAKE ENERGY 2.75 11-15-3 cv 165167BW6 13,780 13,000,000 PRN   SOLE   13,000,000 0 0
INTERDIGITAL INC. 2.50 03-15-1 cv 458660AB3 10,474 9,500,000 PRN   SOLE   9,500,000 0 0
NAVISTAR INTL CORP 3.0 10-15-1 cv 63934EAL2 62,482 61,863,000 PRN   SOLE   61,863,000 0 0
NEWMONT MINING CORP 1.25 07-15 cv 651639AH9 63,513 63,513,000 PRN   SOLE   63,513,000 0 0
NUANCE COMMUNICATIONS 2.75 11- cv 67020YAF7 60,901 60,977,000 PRN   SOLE   60,977,000 0 0
PEABODY ENERGY CORP 4.75 12-15 cv 704549AG9 37,404 49,830,000 PRN   SOLE   49,830,000 0 0
TIBCO SOFTWARE INC. 2.25 05-01 cv 88632QAB9 60,274 59,714,000 PRN   SOLE   59,714,000 0 0
ALEXANDRIA REAL ESTATE PFD cp 015271505 11,476 418,817 SH   SOLE   418,817 0 0
CHESAPEAKE ENERGY CONV PFD 5.7 cp 165167784 12,669 10,000 SH   SOLE   10,000 0 0
CHESAPEAKE ENERGY PFD CONV 5.0 cp 165167826 8,330 80,564 SH   SOLE   80,234 0 330
CLIFFS NATURAL CONV PFD 7.0% cp 18683K408 39,860 2,781,561 SH   SOLE   2,781,561 0 0
FELCOR LODGING TRUST INC SERIE cp 31430F200 16,828 644,510 SH   SOLE   644,510 0 0
HEALTH CARE REIT INC 6.50% SER cp 42217K601 19,862 343,996 SH   SOLE   343,996 0 0
NY COMMUNITY CAP TRUST PFD cp 64944P307 16,361 332,753 SH   SOLE   332,753 0 0