M&R Capital Top 10 Holdings

Top 10 Holdings.

As of 06/30/08

1. Bank Of New York Mellon Corp.

Established in 2007 from the merger of Mellon Financial Corporation and The Bank of New York Company, Inc., The Bank of New York Mellon is a leading asset management and securities services company, uniquely focused to help clients manage and move their financial assets and succeed in the rapidly changing global marketplace. Headquartered in New York, The Bank of New York Mellon has more than $20 trillion in assets under custody or administration and more than $1 trillion under management.

2. Comp de Saneamento Basico ADR.

Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) provides water and sewage services to a range of residential, commercial, industrial and governmental customers in the City of Sao Paulo, Brazil, and in 367 of the 645 other municipalities in the State of Sao Paulo, Brazil. The Company also supplies water on a bulk basis to municipalities in the Sao Paulo Metropolitan Region, in which it does not operate water systems. It divides the service territories into two regions, the Sao Paulo Metropolitan Region and the Regional Systems. The Company provides basic sanitation services, which include the abstraction, treatment, processing and distribution of water, as well as the collection, treatment and reuse of sewage.

3. Superior Energy

Superior Energy Services, Inc. provides oilfield services and equipment to serve drilling and production-related needs of oil and gas companies primarily in the United States. The company operates in four segments: Well Intervention Services, Rental Tools, Marine Services, and Oil and Gas Operations. The Well Intervention Services segment offers coiled tubing, electric line, pumping and stimulation, gas lift, well control, snubbing, recompletion, engineering and well evaluation, offshore oil and gas cleaning, decommissioning, plug and abandonment, and mechanical wireline services. This segment also provides rigless plug and abandonment services in the Gulf of Mexico, as well as manufactures and sells specialized drilling rig instrumentation equipment. The Rental Tools segment engages in the manufacture, sale, and rental of equipment for use with offshore and onshore oil and gas well drilling, completion, production, and workover activities. Its rental tools include pressure control equipment, specialty tubular goods, connecting iron, handling tools, stabilizers, drill collars, and on-site accommodations. The Marine Services segment owns and operates a fleet of liftboats. As of December 31, 2007, it operated a fleet of 37 liftboats, including 10 liftboats configured specifically for wireline services and 27 in its rental fleet. The Oil and Gas Operations segment owns and operates mature oil and gas properties in the Gulf of Mexico. The company had interests in 31 offshore blocks containing 79 structures and approximately 149 producing wells, and had reserves of approximately 13.7 million barrels of oil equivalent. Superior Energy Services was founded in 1991 and is headquartered in Harvey, Louisiana.

4. CVS / Caremark Corporation

CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country's largest pharmacy chain. The company fills or manages more than one billion prescriptions per year, more than any other pharmacy services provider. CVS/Caremark drives value for pharmacy services customers by effectively managing pharmaceutical costs and improving healthcare outcomes through its 6,200 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com.

5. Norfolk Southern Corporation.

Norfolk Southern Corporation, through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. Its operations consist of transportation of coal, coke, and iron ore products; general merchandise traffic, which consists of automotive products, chemicals, metals and construction products, agriculture and consumer products, and paper, clay, and forest products; and intermodal traffic. Automotive products include finished vehicles and auto parts. Metals and construction products comprise steel, aluminum products, machinery, scrap metals, cement, aggregates, bricks, and minerals. Agriculture and consumer products include soybeans, wheat, corn, fertilizer, animal and poultry feed, food oils, flour, beverages, canned goods, sweeteners, consumer products, and ethanol. Paper, clay, and forest products comprise lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, and clay. Intermodal traffic includes shipments moving in trailers, domestic and international containers, and roadrailer equipment. It handles these shipments on behalf of intermodal marketing companies, international steamship lines, truckers, and other shippers. The company also transports overseas freight through various Atlantic and Gulf Coast ports, as well as provides a range of logistics services. It also operates and leases regularly scheduled passenger trains and commuter trains; acquires, leases, and manages coal, oil, gas, and minerals; develops commercial real estate; telecommunications; and leases or sells rail property and equipment. As of December 31, 2007, the company operated approximately 21,000 route miles in 22 states in the United States and the District of Columbia. Norfolk Southern Corporation was founded in 1883 and is based in Norfolk, Virginia.

6. Henry Schein, Inc.

Henry Schein, Inc. distributes healthcare products and services primarily to office-based healthcare practitioners in the North American and European markets. It operates in two segments, Healthcare Distribution and Technology. The Healthcare Distribution segment distributes products, including consumable products, small equipment, laboratory products, large dental equipment, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection control products, and vitamins. The Technology segment provides software, technology, and other value-added services to healthcare providers primarily in the United States and Canada. Its value-added practice solutions include practice management software systems for dental and medical practices and veterinary clinics. Further, this segment offers financial services and continuing education services for practitioners. The company sells its products and services to dental practices and laboratories, physician practices, and veterinary clinics, as well as to government and other institutions. Henry Schein is headquartered in Melville, New York.

7. Intel

Intel Corporation is a semiconductor chip maker, developing advanced integrated digital technology products, primarily integrated circuits, for industries, such as computing and communications. The Company’s products include chips, boards and other semiconductor products that are the building blocks integral to computers, servers, consumer electronics and handheld devices, and networking and communications products. Its primary component-level products include microprocessors, chipsets and flash memory. The Company offers products at various levels of integration, allowing its customers the capability to create advanced computing and communications systems and products. As of December 29, 2007, the Company’s operating segments included the Digital Enterprise Group (DEG), Mobility Group, NAND Products Group, Flash Memory Group, Digital Home Group, Digital Health Group and Software Solutions Group.

8. Dominion Resources, Inc. VA

Dominion Resources, Inc. (Dominion) is a producer and transporter of energy. The Company’s portfolio of assets includes approximately 26,500 megawatts of generation, 6,000 miles of electric transmission lines, 55,000 miles of electric distribution lines in Virginia and North Carolina, 14,000 miles of natural gas transmission, gathering and storage pipeline, 28,000 miles of gas distribution pipeline, exclusive of service lines of two inches in diameter or less, and 1.1 trillion cubic feet equivalent of natural gas and oil reserves. Dominion also owns the underground natural gas storage system and operates over 975 billion cubic feet of storage capacity and serves retail energy customers in eleven states. The Company operates in three segments: Dominion Virginia Power (DVP), Dominion Generation and Dominion Energy.

9. Liberty Global Inc. Ser A.

Liberty Global, Inc. (LGI) is an international communications provider of video, voice and broadband Internet services, with consolidated broadband communications and/or direct-to-home (DTH) satellite operations at December 31, 2007. The Company operates in 15 countries, primarily in Europe, Japan and Chile. LGI conducts its business through its subsidiaries, including UPC Holding BV (UPC Holding) (an indirect wholly owned subsidiary), Telenet Group Holding NV (Telenet) (51.1% indirect controlling ownership interest), Jupiter Telecommunications Co., Ltd. (J:COM) (indirect 37.9% controlling ownership interest) and Austar United Communications Limited (Austar) (indirect 53.4%-owned subsidiary). On September 1, 2007, the Company acquired JTV Thematics, the thematics channel business of SC Media & Commerce Inc., through the merger of JTV Thematics with J:COM.

10. Comcast Corporation - C1 A

Comcast Corporation, together with its subsidiaries, operates as a cable operator in the United States. It offers various consumer entertainment and communication products and services. The company operates in two segments, Cable and Programming. The Cable segment manages and operates cable systems, including video, high-speed Internet, and phone services, as well as regional sports and news networks. Its video services include basic and digital cable, video on demand, high-definition television, digital video recorder, premium channel programming, and pay-per-view programming services. This segment's high-speed Internet service consists of its interactive portal, Comcast.net, which provides multiple email addresses and online storage, as well as various proprietary content and value-added features and enhancements. Its phone services include Comcast Digital Voice, an IP-enabled phone service that provides local and domestic long-distance calling with various features, such as voice mail, caller ID, and call waiting services. The Programming segment operates its consolidated national programming networks consisting of E!, The Golf Channel, VERSUS, G4, and Style. Comcast Corporation also owns the Philadelphia Flyers, the Philadelphia 76ers, and two multipurpose arenas in Philadelphia, as well as manages other facilities for sporting events, concerts, and other events; and develops and operates its Internet businesses that focus on entertainment, information, and communication, including Comcast.net, Fancast, thePlatform, and Fandango. As of December 31, 2007, the company served approximately 24.1 million video subscribers, 13.2 million high-speed Internet subscribers, and 4.6 million phone subscribers; and passed approximately 48.5 million homes in 39 states and the District of Columbia. Comcast Corporation was founded in 1969 and is headquartered in Philadelphia, Pennsylvania.

We take a very straightforward view of the financial markets and use it to build a sophisticated investment program. We look at securities as what they are - claims against underlying assets.
As a value investor, we seek to buy that claim at a discount to our estimate of the value of the underlying asset. Our objective is uncomplicated, but achieving it requires a high level of research, expertise, discipline and independent judgment.