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
ABBOTT LABS COM 002824100 106,571 2,224,400 SH   SOLE   549,400 0 1,675,000
APACHE CORP COM 037411105 75,500 633,228 SH   SOLE   215,228 0 418,000
BANCO SANTANDER SA ADR 05964H105 150 14,100 SH   SOLE   14,100 0 0
BARCLAYS PLC ADR 06738E204 142 8,600 SH   SOLE   8,600 0 0
BP PLC SPONSORED ADR 055622104 177,575 4,020,266 SH   SOLE   1,072,096 0 2,948,170
CHESAPEAKE ENERGY CORP COM 165167107 94,193 3,635,400 SH   SOLE   434,600 0 3,200,800
CHEVRON CORP NEW COM 166764100 80,738 884,800 SH   SOLE   306,900 0 577,900
CHINA PETE & CHEM CORP SPO 16941R108 124 1,300 SH   SOLE   1,300 0 0
CHUBB CORP COM 171232101 76,733 1,286,600 SH   SOLE   356,400 0 930,200
CISCO SYS INC COM 17275R102 66,842 3,304,100 SH   SOLE   445,000 0 2,859,100
CORNING INC COM 219350105 123,907 6,413,400 SH   SOLE   1,739,900 0 4,673,500
DELL INC COM 24702R101 23,760 1,753,500 SH   SOLE   229,500 0 1,524,000
EDISON INTL COM 281020107 58,440 1,514,000 SH   SOLE   207,000 0 1,307,000
ESAPEAKE ENERGY CORP PFD 165167842 2,551 29,008 SH   SOLE   29,008 0 0
EXXON MOBIL CORP COM 30231G102 130,241 1,781,200 SH   SOLE   480,300 0 1,300,900
GENERAL DYNAMICS CORP COM 369550108 86,848 1,223,900 SH   SOLE   359,900 0 864,000
GENERAL ELECTRIC CO COM 369604103 82,967 4,536,200 SH   SOLE   613,900 0 3,922,300
GENUINE PARTS CO COM 372460105 79,872 1,555,748 SH   SOLE   163,300 0 1,392,448
GLAXOSMITHKLINE PLC SPO 37733W105 122 3,100 SH   SOLE   3,100 0 0
GOLDMAN SACHS GROUP INC COM 38141G104 56,922 338,500 SH   SOLE   129,400 0 209,100
HEWLETT PACKARD CO COM 428236103 92,586 2,199,200 SH   SOLE   466,500 0 1,732,700
HONDA MOTOR LTD AME 438128308 130 3,300 SH   SOLE   3,300 0 0
INTEL CORP COM 458140100 123,562 5,875,518 SH   SOLE   1,457,200 0 4,418,318
INTERNATIONAL BUSINESS MACHS COM 459200101 229,834 1,566,055 SH   SOLE   395,800 0 1,170,255
JOHNSON & JOHNSON COM 478160104 115,629 1,869,500 SH   SOLE   447,600 0 1,421,900
JPMORGAN CHASE & CO COM 46625H100 92,090 2,170,900 SH   SOLE   266,300 0 1,904,600
KRAFT FOODS INC CL 50075N104 73,034 2,317,800 SH   SOLE   224,500 0 2,093,300
LINCOLN NATL CORP IND COM 534187109 67,015 2,409,761 SH   SOLE   359,500 0 2,050,261
LOCKHEED MARTIN CORP COM 539830109 51,307 733,900 SH   SOLE   139,800 0 594,100
MEDTRONIC INC COM 585055106 59,151 1,594,800 SH   SOLE   258,500 0 1,336,300
MERCK & CO INC NEW COM 58933Y105 152,777 4,239,100 SH   SOLE   1,026,900 0 3,212,200
METLIFE INC COM 59156R108 84,227 1,895,300 SH   SOLE   265,400 0 1,629,900
MICROSOFT CORP COM 594918104 177,387 6,353,400 SH   SOLE   1,826,800 0 4,526,600
NOBLE CORPORATION BAAR NAM H5833N103 76,165 2,129,300 SH   SOLE   522,122 0 1,607,178
NOVARTIS A G SPO 66987V109 177 3,000 SH   SOLE   3,000 0 0
NVR INC COM 62944T105 28,510 41,258 SH   SOLE   5,876 0 35,382
OMNICOM GROUP INC COM 681919106 123,752 2,702,000 SH   SOLE   364,800 0 2,337,200
PARTNERRE LTD COM G6852T105 52,099 648,400 SH   SOLE   229,300 0 419,100
PFIZER INC COM 717081103 156,161 8,918,389 SH   SOLE   2,402,300 0 6,516,089
RAYTHEON CO COM 755111507 77,047 1,662,648 SH   SOLE   478,060 0 1,184,588
ROYAL DUTCH SHELL PLC SPO 780259107 101,918 1,528,691 SH   SOLE   567,401 0 961,290
SANOFI AVENTIS SPO 80105N105 3,268 101,400 SH   SOLE   101,400 0 0
SEMPRA ENERGY COM 816851109 51,084 973,400 SH   SOLE   129,700 0 843,700
SPDR S&P 500 ETF TR TR 78462F103 4,843 38,500 SH   SOLE   38,500 0 0
TOTAL S A SPO 89151E109 3,252 60,800 SH   SOLE   60,800 0 0
TRANSOCEAN LTD REG H8817H100 55,293 795,466 SH   SOLE   154,669 0 640,797
TRAVELERS COMPANIES INC COM 89417E109 75,092 1,347,900 SH   SOLE   404,400 0 943,500
UNITEDHEALTH GROUP INC COM 91324P102 45,560 1,261,700 SH   SOLE   354,700 0 907,000
UNUM GROUP COM 91529Y106 42,126 1,739,300 SH   SOLE   231,800 0 1,507,500
VANGUARD INTL EQUITY INDEX F ALL 922042775 239 5,000 SH   SOLE   5,000 0 0
VANGUARD INTL EQUITY INDEX F EMR 922042858 385 8,000 SH   SOLE   8,000 0 0
VODAFONE GROUP PLC NEW SPONS NEW 92857W209 10,730 405,967 SH   SOLE   405,967 0 0
WAL MART STORES INC COM 931142103 106,765 1,979,700 SH   SOLE   275,900 0 1,703,800
WELLPOINT INC COM 94973V107 80,753 1,420,200 SH   SOLE   366,740 0 1,053,460
WELLS FARGO & CO NEW COM 949746101 189,264 6,107,254 SH   SOLE   1,201,600 0 4,905,654
WELLS FARGO & CO NEW PERP PFD 949746804 15,198 15,190 SH   SOLE   15,190 0 0
WESTERN DIGITAL CORP COM 958102105 62,254 1,836,400 SH   SOLE   426,300 0 1,410,100