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
ALLIANCE HOLDINGS GP LP COM UNITS LP 01861G100 11,410 183,675 SH   SOLE NONE 30,000 0 153,675
AMERICAN INTL GROUP INC W EXP 01/19/2021 026874156 737 36,060 SH   SOLE NONE 22,900 0 13,160
AMERICAN INTL GROUP INC COM 026874784 21,207 424,050 SH   SOLE NONE 185,000 0 239,050
ANNALY CAP MGMT INC COM 035710409 400 36,500 SH   SOLE NONE 0 0 36,500
APPLE INC COM 037833100 311 580 SH   SOLE NONE 0 0 580
ASSURED GUARANTY LTD COM G0585R106 7,701 304,130 SH   SOLE NONE 100,000 0 204,130
BERKSHIRE HATHAWAY INC CL B 084670702 380 3,040 SH   SOLE NONE 0 0 3,040
BIOSCRIP INC COM 09069N108 6,371 912,680 SH   SOLE NONE 300,000 0 612,680
BROOKFIELD RESIDENTIAL PPTYS COM 11283W104 7,267 346,531 SH   SOLE NONE 79,191 0 267,340
CAPITAL ONE FINL CORP COM 14040H105 8,042 104,225 SH   SOLE NONE 23,000 0 81,225
CAPITAL ONE FINL CORP W EXP 11/14/2018 14040H139 3,751 106,120 SH   SOLE NONE 30,000 0 76,120
CENTRAL SECS CORP COM 155123102 427 19,068 SH   SOLE NONE 0 0 19,068
CHESAPEAKE ENERGY CORP COM 165167107 7,122 277,980 SH   SOLE NONE 55,000 0 222,980
CHIMERA INVT CORP COM 16934Q109 13,819 4,516,050 SH   SOLE NONE 750,000 0 3,766,050
COCA COLA CO COM 191216100 511 13,214 SH   SOLE NONE 0 0 13,214
CORRECTIONS CORP AMER COM 22025Y407 3,813 121,733 SH   SOLE NONE 0 0 121,733
DIRECTV COM CL A 25490A101 3,901 51,050 SH   SOLE NONE 11,000 0 40,050
EVEREST RE GROUP LTD COM G3223R108 1,836 12,000 SH   SOLE NONE 12,000 0 0
FIRST HORIZON NATL CORP COM 320517105 506 41,015 SH   SOLE NONE 0 0 41,015
GOLAR LNG PARTNERS LP COM UNIT LPI Y2745C102 10,758 359,820 SH   SOLE NONE 70,000 0 289,820
HAWAIIAN TELCOM HOLDCO INC COM 420031106 6,164 216,372 SH   SOLE NONE 58,213 0 158,159
INTERVEST BANCSHARES CORP CL A 460927106 14,441 1,938,445 SH   SOLE NONE 510,000 0 1,428,445
JOHNSON & JOHNSON COM 478160104 257 2,615 SH   SOLE NONE 0 0 2,615
LIFELOCK INC COM 53224V100 2,522 147,423 SH   SOLE NONE 30,000 0 117,423
LYON WILLIAM HOMES CL A 552074700 8,303 300,716 SH   SOLE NONE 67,874 0 232,842
MACQUARIE INFRASTR CO MEMBERSHIP INT 55608B105 7,550 131,830 SH   SOLE NONE 20,000 0 111,830
MARKEL CORP COM 570535104 900 1,510 SH   SOLE NONE 1,510 0 0
OCI PARTNERS LP COM UNIT REP LP 67091N108 2,654 123,780 SH   SOLE NONE 30,000 0 93,780
OLD REP INTL CORP COM 680223104 13,834 843,570 SH   SOLE NONE 325,000 0 518,570
ONEBEACON INSURANCE GROUP LTD CL A G67742109 2,002 138,283 SH SOLE NONE - 0 138,283 CL A G67742109 2,074 134,183 SH   SOLE NONE 0 0 134,183
REGIONS FINANCIAL CORP COM 7591EP100 214 19,235 SH   SOLE NONE 0 0 19,235
RENAISSANCERE HOLDINGS LTD COM G7496G103 1,661 17,020 SH   SOLE NONE 17,000 0 20
RENT A CTR INC COM 76009N100 3,181 119,590 SH   SOLE NONE 25,000 0 94,590
RHINO RESOURCE PARTNR COM UNIT REPST 76218Y103 564 41,288 SH   SOLE NONE 33,000 0 8,288
RICE ENERGY INC COM 762760106 6,564 248,733 SH   SOLE NONE 191,648 0 57,085
STANCORP FINL GROUP INC COM 852891100 1,002 15,000 SH   SOLE NONE 15,000 0 0
STARWOOD PPTY TR INC COM 85571B105 13,530 573,560 SH   SOLE NONE 90,000 0 483,560
STEWART INFORMATION SVCS COR COM 860372101 702 20,000 SH   SOLE NONE 20,000 0 0
WALTER ENERGY COM 93317Q105 1,641 217,050 SH   SOLE NONE 50,000 0 167,050
WALTER INVT MGMT CORP COM 93317W102 216 7,236 SH   SOLE NONE 0 0 7,236
WHITE MTNS INS GRP LTD COM G9618E107 842 1,403 SH   SOLE NONE 1,400 0 3