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
ALBANY INTERNATIONAL CORP CL A 012348108 41,053 1,244,790 SH   SOLE   1,067,019 0 177,771
ASHLAND INC COM 044209104 31,961 382,763 SH   SOLE   147,473 0 235,290
ASPEN INSURANCE HOLDINGS LTD SHS G05384105 44,154 1,190,464 SH   SOLE   995,215 0 195,249
ASSURED GUARANTY LTD COM G0585R106 10,383 470,684 SH   SOLE   366,444 0 104,240
AVIS BUDGET GROUP INC COM 053774105 24,946 867,692 SH   SOLE   743,065 0 124,627
BARNES GROUP INC COM 067806109 35,559 1,185,700 SH   SOLE   1,014,895 0 170,805
BROOKDALE SENIOR LIVING COM 112463104 82,139 3,106,625 SH   SOLE   2,091,755 0 1,014,870
CASEY`S GENERAL STORES INC COM 147528103 40,499 673,193 SH   SOLE   568,586 0 104,607
CHEMTURA CORPORATION COM NEW 163893209 40,857 2,012,660 SH   SOLE   1,722,537 0 290,123
CINTAS CORP COM 172908105 27,765 609,677 SH   SOLE   238,486 0 371,191
CNO FINANCIAL GROUP COM 12621E103 74,620 5,757,725 SH   SOLE   3,972,475 0 1,785,250
COCA-COLA ENTERPRISES COM 19122T109 11,168 317,625 SH   SOLE   0 0 317,625
COMSTOCK RESOURCES INC COM NEW 205768203 36,208 2,301,829 SH   SOLE   1,971,854 0 329,975
CROWN HOLDINGS INC COM 228368106 30,258 735,673 SH   SOLE   285,831 0 449,842
CUBIC CORPORATION COM 229669106 19,968 415,139 SH   SOLE   354,994 0 60,145
DARLING INTERNATIONAL COM 237266101 54,607 2,926,424 SH   SOLE   2,465,978 0 460,446
DOLLAR TREE INC. COM 256746108 8,481 166,825 SH   SOLE   0 0 166,825
EMERITUS CORP COM 291005106 23,989 1,034,881 SH   SOLE   886,406 0 148,475
ENSCO PLC SHS CLASS A G3157S106 7,731 133,010 SH   SOLE   0 0 133,010
ESTERLINE TECHNOLOGIES COM 297425100 36,935 510,925 SH   SOLE   437,414 0 73,511
FIRST AMERICAN FINANCIAL COM 31847R102 3,981 180,639 SH   SOLE   141,339 0 39,300
FLUOR CORPORATION COM 343412102 17,564 296,133 SH   SOLE   113,941 0 182,192
FOREST OIL CORP COM PAR $0.01 346091705 24,036 5,876,850 SH   SOLE   3,785,126 0 2,091,724
GENWORTH FINANCIAL INC COM CL A 37247D106 42,169 3,695,777 SH   SOLE   1,387,932 0 2,307,845
H&E EQUIPMENT SERVICES INC COM 404030108 20,577 976,623 SH   SOLE   835,632 0 140,991
HEALTH CARE REIT COM 42217K106 9,037 134,815 SH   SOLE   0 0 134,815
HERTZ GLOBAL HOLDINGS COM 42805T105 26,032 1,049,672 SH   SOLE   426,981 0 622,691
HILLSHIRE BRANDS CO COM 432589109 13,215 399,486 SH   SOLE   313,111 0 86,375
HUMANA INC COM 444859102 8,392 99,460 SH   SOLE   0 0 99,460
IBERIABANK CORP COM 450828108 40,851 762,008 SH   SOLE   653,184 0 108,824
INGREDION INC COM 457187102 34,921 532,164 SH   SOLE   444,656 0 87,508
ION GEOPHYSICAL CORP COM 462044108 28,127 4,672,317 SH   SOLE   4,001,285 0 671,032
IRON MOUNTAIN COM 462846106 15,885 596,938 SH   SOLE   240,907 0 356,031
JEFFERIES GROUP, INC. DBCV 472319AG7 5,861 5,500,000 PRN   SOLE   5,500,000 0 0
KEYCORP COM 493267108 26,477 2,398,276 SH   SOLE   967,061 0 1,431,215
KLA TENCOR COM 482480100 19,565 351,072 SH   SOLE   141,905 0 209,167
LIVE NATION ENTERTAINMENT INC COM 538034109 15,818 1,020,484 SH   SOLE   796,044 0 224,440
LTC PROPERTIES COM 502175102 35,521 909,623 SH   SOLE   778,711 0 130,912
MANPOWERGROUP INC COM 56418H100 6,523 119,026 SH   SOLE   93,273 0 25,753
MEADWESTVACO CORP COM 583334107 24,515 718,708 SH   SOLE   283,288 0 435,420
MUELLER INDUSTRIES INC COM 624756102 34,481 683,737 SH   SOLE   585,755 0 97,982
NEWMONT MINING CORP NOTE 651639AH9 5,050 5,000,000 PRN   SOLE   4,865,000 0 135,000
NORTHWEST BANCSHARES INC COM 667340103 13,807 1,021,990 SH   SOLE   874,875 0 147,115
OCWEN FINANCIAL COM NEW 675746309 33,549 813,913 SH   SOLE   698,076 0 115,837
OIL STATES INTERNATIONAL INC COM 678026105 8,320 89,809 SH   SOLE   70,419 0 19,390
OMEGA HEALTHCARE COM 681936100 47,336 1,525,988 SH   SOLE   1,032,026 0 493,962
ONEOK INC COM 682680103 30,982 749,989 SH   SOLE   290,146 0 459,843
OWENS ILLINOIS COM NEW 690768403 74,247 2,671,705 SH   SOLE   1,728,894 0 942,811
PENTAIR LTD SHS H6169Q108 8,238 142,802 SH   SOLE   0 0 142,802
PERFORMANT FINANCIAL CORP COM 71377E105 20,824 1,796,733 SH   SOLE   1,536,007 0 260,726
PORTLAND GENERAL ELECTRIC CO COM NEW 736508847 40,530 1,324,933 SH   SOLE   1,134,228 0 190,705
POST HOLDINGS INC COM 737446104 41,820 957,847 SH   SOLE   819,050 0 138,797
PRESTIGE BRANDS HOLDINGS INC COM 74112D101 48,090 1,650,323 SH   SOLE   1,412,618 0 237,705
RAVEN INDUSTRIES INC COM 754212108 17,215 574,214 SH   SOLE   491,795 0 82,419
REDWOOD TRUST INC COM 758075402 39,839 2,343,461 SH   SOLE   1,967,114 0 376,347
SBA COMMUNICATIONS COM 78388J106 27,570 371,961 SH   SOLE   142,718 0 229,243
SENSIENT TECHNOLOGIES COM 81725T100 33,635 831,098 SH   SOLE   714,174 0 116,924
SIMPSON MANUFACTURING CO COM 829073105 29,594 1,005,905 SH   SOLE   861,902 0 144,003
SLM CORPORATION COM 78442P106 26,378 1,153,884 SH   SOLE   411,035 0 742,849
TIDEWATER INC COM 886423102 54,954 964,606 SH   SOLE   636,740 0 327,866
TWO HARBORS INVESTMENT CORP COM 90187B101 21,760 2,122,940 SH   SOLE   1,820,052 0 302,888
TYCO INTERNATIONAL LTD SHS H89128104 11,831 359,045 SH   SOLE   0 0 359,045
UNIFIRST CORPORATION COM 904708104 37,229 407,984 SH   SOLE   349,386 0 58,598
UNS ENERGY CORP COM 903119105 31,859 712,261 SH   SOLE   610,447 0 101,814
VERISK ANALYTICS CL A 92345Y106 35,028 586,735 SH   SOLE   227,344 0 359,391
WILLIAMS COS INC COM 969457100 26,098 803,752 SH   SOLE   313,895 0 489,857
WPX ENERGY INC COM 98212B103 28,154 1,486,477 SH   SOLE   597,483 0 888,994
XL GROUP PLC SHS G98290102 14,446 476,435 SH   SOLE   0 0 476,435
XYLEM INC COM 98419M100 21,981 815,915 SH   SOLE   320,011 0 495,904