| Security | CUSIP | Shares | Traded Market Value | % of Holding ↓ |
| INST CASH MANAGEMENT MMKT | 76628T264 | 2,075,175 | $2,075,175.51 | 5.61% |
| SABINE PASS 7.50 11/30/16 | 785583AF2 | 1,665,000 | $1,148,850.00 | 3.10% |
| AXCAN INTE 12.75 03/01/16 | 05454RAF7 | 1,390,000 | $1,139,800.00 | 3.08% |
| HCA, INC. 9.25 11/15/16 | 404119AX7 | 1,315,000 | $1,117,750.00 | 3.02% |
| EAST VALLEY VRN 08/06/14 | LX074689 | 1,400,000 | $1,050,000.00 | 2.84% |
| INTELSAT 8.50 01/15/13 | 45822EAD2 | 1,200,000 | $1,044,000.00 | 2.82% |
| CHART 9.125% 10/15/15 | 16115QAB6 | 1,250,000 | $1,037,500.00 | 2.80% |
| CONNACHER 10.25 12/15/15 | 20588YAC7 | 1,330,000 | $931,000.00 | 2.51% |
| TL ACQUIS 10.50 01/15/15 | 87255MAA8 | 1,450,000 | $862,750.00 | 2.33% |
| TENET HEAL 7.375 02/01/13 | 88033GAY6 | 1,050,000 | $855,750.00 | 2.31% |
| KABEL 10.625 07/01/14 | 48282AAB1 | 1,010,000 | $848,400.00 | 2.29% |
| TARGA RES 8.50 11/01/13 | 87611UAC5 | 1,190,000 | $821,100.00 | 2.22% |
| FORD MOTOR 8.00 12/15/16 | 345397VC4 | 1,490,000 | $816,031.28 | 2.20% |
| HEXION US 9.75 11/15/14 | 428303AH4 | 1,215,000 | $771,525.00 | 2.08% |
| FAIRPOINT 13.125 04/01/18 | 305560AF1 | 1,075,000 | $757,875.00 | 2.04% |
| UNIVERSAL VRN 06/01/15 | 91359PAE0 | 1,025,000 | $697,000.00 | 1.88% |
| ASURION CORP VRN 07/03/14 | LX071250 | 890,000 | $656,935.70 | 1.77% |
| TELCORDIA TE VRN 07/15/12 | 87922RAG7 | 995,000 | $646,750.00 | 1.74% |
| ALLTEL CO 10.375 12/01/17 | 02004JAD2 | 580,000 | $632,200.00 | 1.70% |
| COMMUNITY 8.875 07/15/15 | 12543DAF7 | 740,000 | $619,750.00 | 1.67% |
| TEXAS COMP 10.25 11/01/15 | 882330AA1 | 765,000 | $583,312.50 | 1.57% |
| MIRANT INC. 8.30 05/01/11 | 60467PAH7 | 600,000 | $550,500.00 | 1.48% |
| CLARK AM. VRN 04/01/14 | LX073149 | 849,250 | $539,630.44 | 1.45% |
| MEDIACOM 8.50 10/15/15 | 58446VAE1 | 720,000 | $532,800.00 | 1.44% |
| WIND ACQN VRN 12/07/11 | LX051236 | 924,386 | $526,900.06 | 1.42% |
| TENNECOM 8.625 11/15/14 | 880349AH8 | 1,100,000 | $519,750.00 | 1.40% |
| XM SATELLITE 13% 08/01/13 | 98375NAA8 | 1,350,000 | $513,000.00 | 1.38% |
| ATLANTIC 9.375 01/15/14 | 048266AC4 | 675,000 | $486,000.00 | 1.31% |
| FMG FIN 10.625 09/01/16 | 30250BAC3 | 705,000 | $482,925.00 | 1.30% |
| K HOVNAN 11.50 05/01/13 | 442488BB7 | 560,000 | $453,600.00 | 1.22% |
| OPTI 7.875 12/15/14 | 68383KAD1 | 725,000 | $435,000.00 | 1.17% |
| TRIBUNE CO. VRN 05/17/09 | LX066295 | 553,046 | $432,758.82 | 1.17% |
| NRG ENERGY 7.375 02/01/16 | 629377AU6 | 500,000 | $431,250.00 | 1.16% |
| FREESCALE 8.875 12/15/14 | 35687MAM9 | 965,000 | $429,425.00 | 1.16% |
| ALLTEL COMM. 05/15/15 | LX082831 | 450,000 | $427,288.50 | 1.15% |
| UNITED RFG. 10.5 08/15/12 | 911358AF6 | 605,000 | $426,525.00 | 1.15% |
| LIBBEY VRN 06/01/11 | 52989LAC3 | 635,000 | $409,575.00 | 1.10% |
| UNITED STATES TREAS NTS | 912828CL2 | 375,000 | $381,210.75 | 1.03% |
| ENERGY 10.875 11/01/17 | 292680AA3 | 485,000 | $373,450.00 | 1.01% |
| GENERAL MO 8.375 07/15/33 | 370442BT1 | 1,000,000 | $325,000.00 | 0.87% |
| BRISTOW GRP 7.50 09/15/17 | 110394AB9 | 425,000 | $318,750.00 | 0.86% |
| CHARTER 8.375% 04/30/14 | 161175AD6 | 420,000 | $304,500.00 | 0.82% |
| CII LLC 11.125 11/15/15 | 22944HAA3 | 325,000 | $299,000.00 | 0.80% |
| SPRINT CAP 7.625 01/30/11 | 852060AJ1 | 360,000 | $298,800.00 | 0.80% |
| WIND ACQN. 10.75 12/01/15 | 97314XAA2 | 375,000 | $288,750.00 | 0.78% |
| UNIVERSAL 8.50 06/01/15 | 91359PAF7 | 360,000 | $288,000.00 | 0.77% |
| SLM CORP VRN 01/26/09 | 78442FBU1 | 285,000 | $270,225.03 | 0.73% |
| HEALTH MGT 6.125 04/15/16 | 421933AH5 | 420,000 | $268,800.00 | 0.72% |
| PETROHAWK 7.875 06/01/15 | 716495AC0 | 385,000 | $260,837.50 | 0.70% |
| AQUILA VRN 07/01/12 | 03840PAC6 | 265,000 | $259,700.00 | 0.70% |
| SUNGARD DA 9.125 08/15/13 | 867363AH6 | 300,000 | $249,000.00 | 0.67% |
| AES CORPOR 9.50 06/01/09 | 00130HAQ8 | 250,000 | $241,250.00 | 0.65% |
| SEITEL ACQ 9.75 02/15/14 | 816074AG3 | 370,000 | $233,100.00 | 0.63% |
| SPRINT CAP 6.90 05/01/19 | 852060AG7 | 315,000 | $222,075.00 | 0.60% |
| KOPPERS 9.875 10/15/13 | 500605AB6 | 239,000 | $215,100.00 | 0.58% |
| LINN ENER 9.875 07/01/18 | 536020AA8 | 290,000 | $195,750.00 | 0.52% |
| CABLEVISION VRN 04/01/09 | 12686CAU3 | 200,000 | $194,000.00 | 0.52% |
| CRUM & FORT 7.75 05/01/17 | 228800AF5 | 260,000 | $180,700.00 | 0.48% |
| TX INDUSTRY 7.25 07/15/13 | 882491AM5 | 225,000 | $176,625.00 | 0.47% |
| RELIANT 6.75 12/15/14 | 75952BAM7 | 200,000 | $174,250.00 | 0.47% |
| NOVELIS INC 7.25 02/15/15 | 67000XAB2 | 255,000 | $170,850.00 | 0.46% |
| NSG HLDGS 7.75 12/15/25 | 62940QAA3 | 200,000 | $168,000.00 | 0.45% |
| INTELSAT JA 9.50 06/15/16 | 458207AD9 | 200,000 | $167,500.00 | 0.45% |
| LEVEL 3 12.25 03/15/13 | 527298AF0 | 250,000 | $158,125.00 | 0.42% |
| SPRINT CAP CORP | 852060AT9 | 240,000 | $157,200.00 | 0.42% |
| CENTEX CORP 6.50 05/01/16 | 152312AT1 | 245,000 | $147,000.00 | 0.39% |
| BIOMET INC 10.00 10/15/17 | 090613AC4 | 155,000 | $142,600.00 | 0.38% |
| FORD MOTOR 7.25 10/25/11 | 345397TY9 | 235,000 | $142,278.17 | 0.38% |
| IRON MTN. 7.75 01/15/15 | 462846AB2 | 165,000 | $141,900.00 | 0.38% |
| QUEBECOR 7.75 03/15/16 | 74819RAK2 | 200,000 | $138,500.00 | 0.37% |
| GEOPHYSIQUE 7.50 05/15/15 | 204386AF3 | 205,000 | $137,350.00 | 0.37% |
| EXPEDIA 8.50 07/01/16 | 30212PAC9 | 180,000 | $133,200.00 | 0.36% |
| METROPCS 9.25% 11/01/14 | 591709AC4 | 160,000 | $133,200.00 | 0.36% |
| COPANO 8.125 03/01/16 | 217203AB4 | 170,000 | $124,950.00 | 0.33% |
| BAUSCH 9.875 11/01/15 | 071707AN3 | 155,000 | $122,062.50 | 0.33% |
| US ONCOLOGY 9.00 08/15/12 | 90338WAE3 | 145,000 | $120,350.00 | 0.32% |
| SCIENTIFIC 7.875 06/15/16 | 80874YAA8 | 155,000 | $118,575.00 | 0.32% |
| LEVEL 3 8.750 02/15/17 | 527298AL7 | 245,000 | $117,600.00 | 0.31% |
| ROCK-TENN 9.25 03/15/16 | 772739AE8 | 130,000 | $114,400.00 | 0.30% |
| IPALCO ENTE 7.25 04/01/16 | 462613AE0 | 135,000 | $112,725.00 | 0.30% |
| NEWFIELD 7.125 05/15/18 | 651290AK4 | 155,000 | $109,468.75 | 0.29% |
| US T BILLS DN 01/15/09 | 912795J77 | 100,000 | $99,926.00 | 0.27% |
| CRICKET CO 9.375 11/01/14 | 226566AC1 | 120,000 | $97,500.00 | 0.26% |
| US CONCRTE 8.375 04/01/14 | 90333LAB8 | 145,000 | $90,625.00 | 0.24% |
| QUEBECOR 7.750 03/15/16 | 74819RAG1 | 130,000 | $90,025.00 | 0.24% |
| NORTEL NET 10.75 07/15/16 | 656569AL4 | 170,000 | $89,675.00 | 0.24% |
| EL PASO 6.375 02/01/09 | 28336LAT6 | 90,000 | $88,395.93 | 0.23% |
| CARDINAL 9.5% 04/15/15 | 14150BAC8 | 150,000 | $87,000.00 | 0.23% |
| MARINER ENE 8.00 05/15/17 | 56845TAF4 | 145,000 | $85,550.00 | 0.23% |
| SPRINT CAP CORP | 852060AS1 | 100,000 | $80,500.00 | 0.21% |
| ATLAS 10.750 02/01/18 | 049302AB8 | 115,000 | $77,625.00 | 0.20% |
| DR HORTON 5.25% 02/15/15 | 23331AAW9 | 135,000 | $76,275.00 | 0.20% |
| WINDSTREAM 11.0 12/01/17 | 97381UAA6 | 155,000 | $72,850.00 | 0.19% |
| VIDEOTRON 9.125 04/15/18 | 92658TAL2 | 80,000 | $71,000.00 | 0.19% |
| DR HORTON 6.50 04/15/16 | 23331AAZ2 | 115,000 | $67,275.00 | 0.18% |
| TENNECO IN 8.125 11/15/15 | 880349AK1 | 110,000 | $57,200.00 | 0.15% |
| GEOPHYSIQUE 7.75 05/15/17 | 204386AK2 | 85,000 | $56,950.00 | 0.15% |
| HEXION FIN. VRN 11/15/14 | 428303AG6 | 80,000 | $52,800.00 | 0.14% |
| CROWN AMERI 7.75 11/15/15 | 228188AD0 | 55,000 | $47,987.50 | 0.12% |
| SPRINT NEXTEL CORP | 852061AD2 | 65,000 | $45,012.50 | 0.12% |
| PULTE HOMES 5.25 01/15/14 | 745867AQ4 | 65,000 | $42,900.00 | 0.11% |
| NOVA 7.4 04/01/09 | 669936AA4 | 20,000 | $19,800.00 | 0.05% |
| DR HORTON 5.625 01/15/16 | 23331AAV1 | 20,000 | $11,300.00 | 0.03% |
| ABITIBI CDS 06/20/09 | CD003CB6D | 500,000 | -$143,785.00 | -0.38% |
| Total Long Positions | | | $37,115,262.44 | |
| Total Short Positions | | | -$143,785.00 | |
| Total Fund Assets | | | $36,971,477.44 | 100.00% |
