<DOCUMENT>
<TYPE>13F-HR
<SEQUENCE>1
<FILENAME>blum13f0603.txt
<TEXT>
<TABLE>
                                                                  FORM 13F INFORMATION TABLE
                                                           VALUE   SHARES/  SH/ PUT/ INVSTMT    OTHER          VOTING AUTHORITY
        NAME OF ISSUER          TITLE OF CLASS    CUSIP   (x$1000) PRN AMT  PRN CALL DSCRETN   MANAGERS     SOLE    SHARED    NONE
------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
<S>                            <C>              <C>       <C>      <C>      <C> <C>  <C>     <C>          <C>      <C>      <C>
CONVERGYS CORPORATION          COM              212485106    90400  5650000 SH       SOLE                  5650000
EFUNDS CORPORATION             COM              28224R101    13733  1189000 SH       SOLE                  1189000
FAIR ISAAC & COMPANY INC       COM              303250104   259458  5042920 SH       SOLE                  5042920
HAEMONETICS CORP               COM              405024100    33172  1773900 SH       SOLE                  1773900
IMPATH, INC.                   COM              45255G101    33861  2399800 SH       SOLE                  2399800
INTERLAND INC.                 COM              458727104     3249  3349200 SH       SOLE                  3349200
NCR CORP.                      COM              62886E108    91279  3562800 SH       SOLE                  3562800
PEGASUS SOLUTIONS INC          COM              705906105    50787  3117700 SH       SOLE                  3117700
PENN-AMERICA GROUP, INC.       COM              707247102     5625   500000 SH       SOLE                   500000
PERINI CORPORATION             COM              713839108    46296  5823397 SH       SOLE                  5823397
PLAYTEX PRODUCTS               COM              72813P100    65169 10150992 SH       SOLE                 10150992
PRG-SCHULTZ INTERNATIONAL      COM              69357C107    61700 10439948 SH       SOLE                 10439948
PRG-SCHULTZ INTERNATIONAL      NOTE 4.75% 11/06 69357CAA5    42500  5167960 SH       SOLE                  5167960
RENAL CARE GROUP, INC.         COM              759930100    10690   303600 SH       SOLE                   303600
SYNOPSYS INC                   COM              871607107   284847  4599500 SH       SOLE                  4599500
URS CORP                       COM              903236107   135122  6943564 SH       SOLE                  6943564
</TABLE>

</TEXT>
</DOCUMENT>