| 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 |
| AT&T Inc. (T) | COM | 00206R102 | 2,025,000 | 57,600 | SH | | SOLE | | 0 | 0 | 57,600 |
| Activision Blizzard (ATVI) | COM | 00507V109 | 7,391,000 | 414,500 | SH | | SOLE | | 149,000 | 0 | 265,500 |
| Altera Corporation (ALTR) | COM | 021441100 | 7,068,000 | 217,400 | SH | | SOLE | | 93,800 | 0 | 123,600 |
| American Waterworks (AWK) | COM | 30420103 | 6,768,000 | 160,150 | SH | | SOLE | | 63,400 | 0 | 96,750 |
| Ameriprise Financial Inc. (AMP) | COM | 03076C106 | 12,092,000 | 105,100 | SH | | SOLE | | 40,400 | 0 | 64,700 |
| Anadarko Petroleum Corp. (APC) | COM | 032511107 | 9,661,000 | 121,800 | SH | | SOLE | | 47,050 | 0 | 74,750 |
| Apple Computer Inc. (AAPL) | COM | 037833100 | 32,376,000 | 57,710 | SH | | SOLE | | 25,700 | 0 | 32,010 |
| BE Aerospace (BEAV) | COM | 073302101 | 9,156,000 | 105,200 | SH | | SOLE | | 40,850 | 0 | 64,350 |
| Berkshire Hathaway Inc. (BRK/B) | COM | 84670702 | 17,618,000 | 148,600 | SH | | SOLE | | 56,600 | 0 | 92,000 |
| Biogen Idec Inc. (BIIB) | COM | 09062X103 | 12,329,000 | 44,100 | SH | | SOLE | | 18,600 | 0 | 25,500 |
| Boeing (BA) | COM | 097023105 | 10,093,000 | 73,950 | SH | | SOLE | | 26,850 | 0 | 47,100 |
| Borg Warner (BWA) | COM | 099724106 | 10,170,000 | 181,900 | SH | | SOLE | | 71,700 | 0 | 110,200 |
| Bristol-Myers Squibb Co. (BMY) | COM | 110122108 | 1,116,000 | 21,000 | SH | | SOLE | | 21,000 | 0 | 0 |
| CBS Corp (CBS) | COM | 124857202 | 10,163,000 | 159,450 | SH | | SOLE | | 73,500 | 0 | 85,950 |
| CVS / Caremark Corp (CVS) | COM | 126650100 | 16,217,000 | 226,595 | SH | | SOLE | | 97,005 | 0 | 129,590 |
| Cameron International (CAM) | COM | 13342B105 | 5,992,000 | 100,650 | SH | | SOLE | | 35,450 | 0 | 65,200 |
| Capital One Financial Corp. (COF) | CL B | 14040H105 | 11,832,000 | 154,450 | SH | | SOLE | | 58,750 | 0 | 95,700 |
| Cardinal Health Inc. (CAH) | COM | 14149Y108 | 855,000 | 12,800 | SH | | SOLE | | 12,800 | 0 | 0 |
| Celgene Corp. (CELG) | COM | 151020104 | 14,168,000 | 83,850 | SH | | SOLE | | 40,350 | 0 | 43,500 |
| Cerner Corp (CERN) | COM | 156782104 | 11,516,000 | 206,600 | SH | | SOLE | | 84,700 | 0 | 121,900 |
| Citigroup Inc. (C) | COM | 172967424 | 16,790,000 | 322,200 | SH | | SOLE | | 116,950 | 0 | 205,250 |
| Colgate-Palmolive Co. (CL) | COM | 194162103 | 913,000 | 14,000 | SH | | SOLE | | 14,000 | 0 | 0 |
| Conoco Phillips (COP) | COM | 20825C104 | 9,478,000 | 134,150 | SH | | SOLE | | 60,650 | 0 | 73,500 |
| Consumer Disc Select SPDR ETF (XLY) | SBI CONS DISCR | 81369Y407 | 4,658,000 | 69,700 | SH | | SOLE | | 0 | 0 | 69,700 |
| Costco Wholesale (COST) | COM | 22160K105 | 11,860,000 | 99,650 | SH | | SOLE | | 36,850 | 0 | 62,800 |
| Danaher Corp (DHR) | COM | 235851102 | 10,210,000 | 132,250 | SH | | SOLE | | 62,100 | 0 | 70,150 |
| Eagle Materials (EXP) | COM | 26969P108 | 7,704,000 | 99,500 | SH | | SOLE | | 42,500 | 0 | 57,000 |
| Eaton Corp. (ETN) | COM | G29183103 | 9,663,000 | 126,950 | SH | | SOLE | | 52,050 | 0 | 74,900 |
| Ecolab Inc (ECL) | COM | 278865100 | 7,561,000 | 72,510 | SH | | SOLE | | 30,710 | 0 | 41,800 |
| Electronic Arts (EA) | COM | 285512109 | 541,000 | 23,600 | SH | | SOLE | | 23,600 | 0 | 0 |
| Express Scripts Hldg Co (ESRX) | COM | 30219G108 | 12,383,000 | 176,300 | SH | | SOLE | | 75,400 | 0 | 100,900 |
| Exxon Mobil Corporation (XOM) | COM | 30231G102 | 20,328,000 | 200,870 | SH | | SOLE | | 84,270 | 0 | 116,600 |
| Gamestop Corp Class A (GME) | CL A | 36467W109 | 9,547,000 | 193,800 | SH | | SOLE | | 72,200 | 0 | 121,600 |
| General Electric Co. (GE) | COM | 369604103 | 2,496,000 | 89,050 | SH | | SOLE | | 0 | 0 | 89,050 |
| Gilead Sciences Inc. (GILD) | COM | 375558103 | 18,268,000 | 243,250 | SH | | SOLE | | 110,650 | 0 | 132,600 |
| Google - A (GOOG) | COM | 38259P508 | 26,583,000 | 23,720 | SH | | SOLE | | 10,520 | 0 | 13,200 |
| Health Care Select SPDR Fund ETF (XLV) | SBI HEALTHCARE | 81369Y209 | 4,665,000 | 84,150 | SH | | SOLE | | 0 | 0 | 84,150 |
| Home Depot Inc. (HD) | COM | 437076102 | 11,762,000 | 142,850 | SH | | SOLE | | 61,600 | 0 | 81,250 |
| Honeywell International Inc. (HON) | CL A | 438516106 | 14,701,000 | 160,900 | SH | | SOLE | | 64,500 | 0 | 96,400 |
| Industrial Select SPDR Fund ETF (XLI) | SBI INT-INDS | 81369Y704 | 4,682,000 | 89,600 | SH | | SOLE | | 0 | 0 | 89,600 |
| Informatica (INFA) | COM | 45666Q102 | 7,798,000 | 187,900 | SH | | SOLE | | 81,000 | 0 | 106,900 |
| JDS Uniphase Corp. (JDSU) | COM PAR $0.001 | 46612J507 | 4,680,000 | 360,400 | SH | | SOLE | | 156,500 | 0 | 203,900 |
| JP Morgan Chase & Co. (JPM) | COM | 46625H100 | 18,471,000 | 315,850 | SH | | SOLE | | 133,900 | 0 | 181,950 |
| Kansas City Southern (KSU) | COM | 485170302 | 7,801,000 | 63,000 | SH | | SOLE | | 27,500 | 0 | 35,500 |
| Marathon Petroleum Corp (MPC) | COM | 56585A102 | 6,536,000 | 71,250 | SH | | SOLE | | 34,450 | 0 | 36,800 |
| McKesson Corp (MCK) | COM | 58155Q103 | 13,009,000 | 80,600 | SH | | SOLE | | 27,550 | 0 | 53,050 |
| Microchip Tech. (MCHP) | COM | 595017104 | 6,303,000 | 140,850 | SH | | SOLE | | 70,500 | 0 | 70,350 |
| Microsoft Corp. (MSFT) | COM | 594918104 | 11,880,000 | 317,550 | SH | | SOLE | | 140,650 | 0 | 176,900 |
| NetApp Inc. (NTAP) | COM | 64110D104 | 4,599,000 | 111,800 | SH | | SOLE | | 46,200 | 0 | 65,600 |
| Occidental Petroleum Corporation (OXY) | COM | 674599105 | 8,459,000 | 88,950 | SH | | SOLE | | 44,800 | 0 | 44,150 |
| Ocwen Financial Corp (OCN) | COM | 675746309 | 10,608,000 | 191,300 | SH | | SOLE | | 69,100 | 0 | 122,200 |
| Oracle Corporation (ORCL) | COM | 68389X105 | 673,000 | 17,600 | SH | | SOLE | | 17,600 | 0 | 0 |
| Packaging Corp of America 695156109 (PKG) | COM | 695156109 | 7,657,000 | 121,000 | SH | | SOLE | | 51,200 | 0 | 69,800 |
| Pepsico Inc. (PEP) | COM | 713448108 | 14,539,000 | 175,300 | SH | | SOLE | | 64,000 | 0 | 111,300 |
| Pfizer Inc. (PFE) | COM | 717081103 | 21,154,000 | 690,630 | SH | | SOLE | | 288,730 | 0 | 401,900 |
| Procter & Gamble Co. (PG) | COM | 742718109 | 18,468,000 | 226,850 | SH | | SOLE | | 102,100 | 0 | 124,750 |
| Prudential Financial Inc. (PRU) | COM | 744320102 | 9,628,000 | 104,400 | SH | | SOLE | | 39,000 | 0 | 65,400 |
| Resmed Inc. (RMD) | COM | 761152107 | 826,000 | 17,550 | SH | | SOLE | | 17,550 | 0 | 0 |
| SPDR S&P Bank ETF (KBE) | S&P BK ETF | 78464A797 | 4,636,000 | 139,750 | SH | | SOLE | | 0 | 0 | 139,750 |
| SPDR Trust Series 1 Index Fund (SPY) | TR UNIT | 78462F103 | 46,514,000 | 251,850 | SH | | SOLE | | 69,000 | 0 | 182,850 |
| Sandisk Corp. (SNDK) | COM | 80004C101 | 10,927,000 | 154,900 | SH | | SOLE | | 67,700 | 0 | 87,200 |
| Schlumberger Ltd. (SLB) | COM | 806857108 | 16,107,000 | 178,750 | SH | | SOLE | | 74,550 | 0 | 104,200 |
| Skyworks Solutions Inc. (SWKS) | COM | 83088M102 | 800,000 | 28,000 | SH | | SOLE | | 28,000 | 0 | 0 |
| Smith (A.O.) Corp (AOS) | COM | 831865209 | 5,674,000 | 105,200 | SH | | SOLE | | 41,700 | 0 | 63,500 |
| Starbucks Corp. (SBUX) | COM | 855244109 | 12,480,000 | 159,200 | SH | | SOLE | | 63,700 | 0 | 95,500 |
| TJX Companies (TJX) | COM | 872540109 | 14,661,000 | 230,050 | SH | | SOLE | | 94,050 | 0 | 136,000 |
| Technology Select SPDR Fund ETF (XLK) | TECHNOLOGY | 81369Y803 | 4,655,000 | 130,250 | SH | | SOLE | | 0 | 0 | 130,250 |
| Tesla Motors (TSLA) | COM | 88160R101 | 6,905,000 | 45,900 | SH | | SOLE | | 19,300 | 0 | 26,600 |
| The Walt Disney Co. (DIS) | COM DISNEY | 254687106 | 16,713,000 | 218,750 | SH | | SOLE | | 84,850 | 0 | 133,900 |
| United Rentals (URI) | COM | 911363109 | 7,397,000 | 94,900 | SH | | SOLE | | 44,400 | 0 | 50,500 |
| Verizon Communications (VZ) | COM | 92343V104 | 13,022,000 | 265,000 | SH | | SOLE | | 92,100 | 0 | 172,900 |
| Wal-Mart Stores Inc. (WMT) | COM | 931142103 | 1,255,000 | 15,950 | SH | | SOLE | | 15,950 | 0 | 0 |
| Wells Fargo Company (WFC) | COM | 949746101 | 16,258,000 | 358,100 | SH | | SOLE | | 136,200 | 0 | 221,900 |
| Whirlpool (WHR) | COM | 963320106 | 9,639,000 | 61,450 | SH | | SOLE | | 21,100 | 0 | 40,350 |
| Zoetis (ZTS) | COM | 98978V103 | 7,453,000 | 227,989 | SH | | SOLE | | 110,002 | 0 | 117,987 |
