UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                    Form 13F

                              Form 13F COVER PAGE

Report for the Calendar Year or Quarter Ended: December 31, 2007

Check here if Amendment [  ]; Amendment Number:
This Amendment (Check only one.): [  ] is a restatement.
                                  [  ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:    Smith Barney Fund Management, LLC
Address: 620 8th Ave
         New York, New York 10018


13F File Number:  28-4024

The institutional investment manager filing this report and the person by whom
it is signed hereby represent that the person signing the report is authorized
to submit it, that all information contained herein is true, correct and
complete, and that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of this form.

Person Signing this Report on Behalf of Reporting Manager:

Name:      Terrence Murphy
Title:     Chief Administrative Officer
Phone:     212-559-0135

Signature, Place, and Date of Signing:

     Terrence Murphy     New York, New York     February 14, 2008


Report Type (Check only one.):

[ X]         13F HOLDINGS REPORT.

[  ]         13F NOTICE.

[  ]         13F COMBINATION REPORT.







                              FORM 13F SUMMARY PAGE


Report Summary:

Number of Other Included Managers:         1

Form13F Information Table Entry Total:     234

Form13F Information Table Value Total:     $844,627 (thousands)


List of Other Included Managers:

Provide a numbered list of the name(s) and Form 13F file number(s) of all
institutional managers with respect to which this report is filed, other
than the manager filing this report.

No.  13F File Number               Name


1    28-1700                       Legg Mason, Inc.





                                                                                             
                                                     FORM 13F INFORMATION TABLE
                                                             VALUE  SHARES/ SH/ PUT/ INVSTMT  OTHER            VOTING AUTHORITY
NAME OF ISSUER                 TITLE OF CLASS   CUSIP     (x$1000)  PRN AMT PRN CALL DSCRETN MANAGERS         SOLE   SHARED     NONE
------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
3M CO                          COM              88579Y101      562     6660 SH       DEFINED 1                6660        0        0
ABBOTT LABS                    COM              002824100     9168   163260 SH       DEFINED 1              163260        0        0
ADOBE SYS INC                  COM              00724F101      337     7880 SH       DEFINED 1                7880        0        0
ADVENT SOFTWARE INC            COM              007974108     1894    35000 SH       DEFINED 1               35000        0        0
AFLAC INC                      COM              001055102     2427    38750 SH       DEFINED 1               38750        0        0
AGILENT TECHNOLOGIES INC       COM              00846U101     2338    63630 SH       DEFINED 1               63630        0        0
AIR PRODS & CHEMS INC          COM              009158106      892     9040 SH       DEFINED 1                9040        0        0
AKAMAI TECHNOLOGIES INC        COM              00971T101     4106   118657 SH       DEFINED 1              118657        0        0
ALCOA INC                      COM              013817101     4251   116300 SH       DEFINED 1              116300        0        0
ALKERMES INC                   COM              01642T108      967    62000 SH       DEFINED 1               62000        0        0
ALLIED WRLD ASSUR COM HLDG L   SHS              G0219G203     1667    33220 SH       DEFINED 1               33220        0        0
ALTRIA GROUP INC               COM              02209S103     2552    33753 SH       DEFINED 1               33753        0        0
AMAZON COM INC                 COM              023135106    11306   122032 SH       DEFINED 1              122032        0        0
AMERICAN EXPRESS CO            COM              025816109     7335   141000 SH       DEFINED 1              141000        0        0
AMERICAN INTL GROUP INC        COM              026874107     5178    88806 SH       DEFINED 1               88806        0        0
AMGEN INC                      COM              031162100    16382   352747 SH       DEFINED 1              352747        0        0
ANADARKO PETE CORP             COM              032511107    30855   469700 SH       DEFINED 1              469700        0        0
ANNALY CAP MGMT INC            COM              035710409     3460   190300 SH       DEFINED 1              190300        0        0
APPLIED MATLS INC              COM              038222105     5194   292400 SH       DEFINED 1              292400        0        0
ARRIS GROUP INC                COM              04269Q100      259    25862 SH       DEFINED 1               25862        0        0
ASML HOLDING N V               NY REG SHS       N07059186      478    15245 SH       DEFINED 1               15245        0        0
ASTORIA FINL CORP              COM              046265104      273    11700 SH       DEFINED 1               11700        0        0
AT&T INC                       COM              00206R102     2539    61085 SH       DEFINED 1               61085        0        0
AUTODESK INC                   COM              052769106     5111   102700 SH       DEFINED 1              102700        0        0
AUTOMATIC DATA PROCESSING IN   COM              053015103      455    10203 SH       DEFINED 1               10203        0        0
AVERY DENNISON CORP            COM              053611109      670    12600 SH       DEFINED 1               12600        0        0
BAKER HUGHES INC               COM              057224107     2125    26200 SH       DEFINED 1               26200        0        0
BANK OF AMERICA CORPORATION    COM              060505104     7347   178046 SH       DEFINED 1              178046        0        0
BANK OF NEW YORK MELLON CORP   COM              064058100      813    16664 SH       DEFINED 1               16664        0        0
BARRICK GOLD CORP              COM              067901108      646    15362 SH       DEFINED 1               15362        0        0
BENTLEY PHARMACEUTICALS INC    COM              082657107     2177   144260 SH       DEFINED 1              144260        0        0
BERKSHIRE HATHAWAY INC DEL     CL A             084670108     9204       65 SH       DEFINED 1                  65        0        0
BIOGEN IDEC INC                COM              09062X103    19553   343507 SH       DEFINED 1              343507        0        0
BIOMIMETIC THERAPEUTICS INC    COM              09064X101     1147    65990 SH       DEFINED 1               65990        0        0
BJ SVCS CO                     COM              055482103     1480    61000 SH       DEFINED 1               61000        0        0
BOEING CO                      COM              097023105     4767    54500 SH       DEFINED 1               54500        0        0
BP PLC                         SPONSORED ADR    055622104      154     2100 SH       DEFINED 1                2100        0        0
BRIDGELINE SOFTWARE INC        COM              10807Q205       66    16900 SH       DEFINED 1               16900        0        0
BRISTOL MYERS SQUIBB CO        COM              110122108      186     7000 SH       DEFINED 1                7000        0        0
BROADCOM CORP                  CL A             111320107     6222   238000 SH       DEFINED 1              238000        0        0
CABLEVISION SYS CORP           CL A NY CABLVS   12686C109     9783   399290 SH       DEFINED 1              399290        0        0
CABOT MICROELECTRONICS CORP    COM              12709P103     2065    57500 SH       DEFINED 1               57500        0        0
CADBURY SCHWEPPES PLC          ADR              127209302      182     3680 SH       DEFINED 1                3680        0        0
CAPITAL ONE FINL CORP          COM              14040H105      846    17900 SH       DEFINED 1               17900        0        0
CATERPILLAR INC DEL            COM              149123101     3846    53000 SH       DEFINED 1               53000        0        0
CBS CORP NEW                   CL B             124857202      996    36525 SH       DEFINED 1               36525        0        0
CHARMING SHOPPES INC           COM              161133103      514    95000 SH       DEFINED 1               95000        0        0
CHEVRON CORP NEW               COM              166764100     3248    34800 SH       DEFINED 1               34800        0        0
CHUBB CORP                     COM              171232101     6284   115120 SH       DEFINED 1              115120        0        0
CIRRUS LOGIC INC               COM              172755100      616   116600 SH       DEFINED 1              116600        0        0
CISCO SYS INC                  COM              17275R102     8779   324308 SH       DEFINED 1              324308        0        0
CIT GROUP INC                  COM              125581108      639    26575 SH       DEFINED 1               26575        0        0
COCA COLA CO                   COM              191216100     3277    53395 SH       DEFINED 1               53395        0        0
COHEN & STEERS INC             COM              19247A100     1343    44800 SH       DEFINED 1               44800        0        0
COMCAST CORP NEW               CL A             20030N101     1414    77403 SH       DEFINED 1               77403        0        0
COMCAST CORP NEW               CL A SPL         20030N200    12546   692375 SH       DEFINED 1              692375        0        0
CONOCOPHILLIPS                 COM              20825C104     1880    21287 SH       DEFINED 1               21287        0        0
CORE LABORATORIES N V          COM              N22717107     8494    68100 SH       DEFINED 1               68100        0        0
CORNING INC                    COM              219350105      480    20000 SH       DEFINED 1               20000        0        0
COVANTA HLDG CORP              COM              22282E102      197     7100 SH       DEFINED 1                7100        0        0
COVENTRY HEALTH CARE INC       COM              222862104      299     5035 SH       DEFINED 1                5035        0        0
COVIDIEN LTD                   COM              G2552X108     7305   164931 SH       DEFINED 1              164931        0        0
CREE INC                       COM              225447101      811    29500 SH       DEFINED 1               29500        0        0
CYTEC INDS INC                 COM              232820100      419     6800 SH       DEFINED 1                6800        0        0
DELL INC                       COM              24702R101      170     6900 SH       DEFINED 1                6900        0        0
DEVON ENERGY CORP NEW          COM              25179M103      607     6825 SH       DEFINED 1                6825        0        0
DIAMOND OFFSHORE DRILLING IN   COM              25271C102      593     4170 SH       DEFINED 1                4170        0        0
DISCOVERY HOLDING CO           CL A COM         25468Y107     1417    56340 SH       DEFINED 1               56340        0        0
DISNEY WALT CO                 COM DISNEY       254687106    17003   526721 SH       DEFINED 1              526721        0        0
DOLBY LABORATORIES INC         COM              25659T107      556    11170 SH       DEFINED 1               11170        0        0
DOMINION RES INC VA NEW        COM              25746U109      419     8830 SH       DEFINED 1                8830        0        0
DOVER CORP                     COM              260003108     2817    61100 SH       DEFINED 1               61100        0        0
DOW CHEM CO                    COM              260543103     2847    72200 SH       DEFINED 1               72200        0        0
DSP GROUP INC                  COM              23332B106      528    43200 SH       DEFINED 1               43200        0        0
DU PONT E I DE NEMOURS & CO    COM              263534109     5159   117000 SH       DEFINED 1              117000        0        0
DUKE ENERGY CORP NEW           COM              26441C105      206    10200 SH       DEFINED 1               10200        0        0
E M C CORP MASS                COM              268648102      560    30175 SH       DEFINED 1               30175        0        0
EBAY INC                       COM              278642103     5947   179158 SH       DEFINED 1              179158        0        0
ECHOSTAR COMMUNICATIONS NEW    CL A             278762109     1344    35610 SH       DEFINED 1               35610        0        0
ELAN PLC                       ADR              284131208      503    22880 SH       DEFINED 1               22880        0        0
ELECTRONIC ARTS INC            COM              285512109     4609    78907 SH       DEFINED 1               78907        0        0
EMBARQ CORP                    COM              29078E105     1113    22457 SH       DEFINED 1               22457        0        0
ENCANA CORP                    COM              292505104      463     6800 SH       DEFINED 1                6800        0        0
ENZO BIOCHEM INC               COM              294100102     1691   132721 SH       DEFINED 1              132721        0        0
EXCEL TECHNOLOGY INC           COM              30067T103      117     4300 SH       DEFINED 1                4300        0        0
EXELON CORP                    COM              30161N101      442     5410 SH       DEFINED 1                5410        0        0
EXXON MOBIL CORP               COM              30231G102     4715    50320 SH       DEFINED 1               50320        0        0
FEDERAL HOME LN MTG CORP       COM              313400301      986    28923 SH       DEFINED 1               28923        0        0
FOREST CITY ENTERPRISES INC    CL A             345550107      389     8737 SH       DEFINED 1                8737        0        0
FOREST LABS INC                COM              345838106    14971   410720 SH       DEFINED 1              410720        0        0
FORTUNE BRANDS INC             COM              349631101      268     3700 SH       DEFINED 1                3700        0        0
FRANKLIN RES INC               COM              354613101     1042     9100 SH       DEFINED 1                9100        0        0
GANNETT INC                    COM              364730101       14      350 SH       DEFINED 1                 350        0        0
GAP INC DEL                    COM              364760108     4627   217400 SH       DEFINED 1              217400        0        0
GENENTECH INC                  COM NEW          368710406     7406   110417 SH       DEFINED 1              110417        0        0
GENERAL ELECTRIC CO            COM              369604103    11031   297550 SH       DEFINED 1              297550        0        0
GENERAL MLS INC                COM              370334104      296     5180 SH       DEFINED 1                5180        0        0
GENZYME CORP                   COM              372917104    18615   250062 SH       DEFINED 1              250062        0        0
GLAXOSMITHKLINE PLC            SPONSORED ADR    37733W105     4077    80900 SH       DEFINED 1               80900        0        0
GOLDMAN SACHS GROUP INC        COM              38141G104      563     2616 SH       DEFINED 1                2616        0        0
GOOGLE INC                     CL A             38259P508      341      492 SH       DEFINED 1                 492        0        0
GRANT PRIDECO INC              COM              38821G101    11325   204000 SH       DEFINED 1              204000        0        0
HALLIBURTON CO                 COM              406216101     2866    75590 SH       DEFINED 1               75590        0        0
HARMAN INTL INDS INC           COM              413086109     1241    16829 SH       DEFINED 1               16829        0        0
HARTFORD FINL SVCS GROUP INC   COM              416515104     2599    29800 SH       DEFINED 1               29800        0        0
HEINZ H J CO                   COM              423074103      132     2825 SH       DEFINED 1                2825        0        0
HOME DEPOT INC                 COM              437076102     5860   217492 SH       DEFINED 1              217492        0        0
HONEYWELL INTL INC             COM              438516106     7531   122310 SH       DEFINED 1              122310        0        0
HUDSON CITY BANCORP            COM              443683107      616    40960 SH       DEFINED 1               40960        0        0
IAC INTERACTIVECORP            COM NEW          44919P300     2716   100857 SH       DEFINED 1              100857        0        0
ILLINOIS TOOL WKS INC          COM              452308109      377     7030 SH       DEFINED 1                7030        0        0
IMCLONE SYS INC                COM              45245W109     6768   157382 SH       DEFINED 1              157382        0        0
INTEL CORP                     COM              458140100     7865   295009 SH       DEFINED 1              295009        0        0
INTERNATIONAL BUSINESS MACHS   COM              459200101     6096    56390 SH       DEFINED 1               56390        0        0
INTERPUBLIC GROUP COS INC      COM              460690100     3005   370470 SH       DEFINED 1              370470        0        0
ISHARES INC                    MSCI JAPAN       464286848      181    13600 SH       DEFINED 1               13600        0        0
ISIS PHARMACEUTICALS INC       COM              464330109     1253    79500 SH       DEFINED 1               79500        0        0
J CREW GROUP INC               COM              46612H402       49     1000 SH       DEFINED 1                1000        0        0
JOHNSON & JOHNSON              COM              478160104    14324   214741 SH       DEFINED 1              214741        0        0
JP MORGAN CHASE & CO           COM              46625H100     9378   214833 SH       DEFINED 1              214833        0        0
KELLOGG CO                     COM              487836108      298     5680 SH       DEFINED 1                5680        0        0
KIMBERLY CLARK CORP            COM              494368103     5343    77050 SH       DEFINED 1               77050        0        0
KING PHARMACEUTICALS INC       COM              495582108      397    38733 SH       DEFINED 1               38733        0        0
KRAFT FOODS INC                CL A             50075N104     4363   133691 SH       DEFINED 1              133691        0        0
L-3 COMMUNICATIONS HLDGS INC   COM              502424104    12004   113300 SH       DEFINED 1              113300        0        0
LEHMAN BROS HLDGS INC          COM              524908100    21864   334105 SH       DEFINED 1              334105        0        0
LIBERTY GLOBAL INC             COM SER A        530555101     1032    26329 SH       DEFINED 1               26329        0        0
LIBERTY GLOBAL INC             COM SER C        530555309      979    26737 SH       DEFINED 1               26737        0        0
LIBERTY MEDIA HLDG CORP        INT COM SER A    53071M104     3859   202217 SH       DEFINED 1              202217        0        0
LIBERTY MEDIA HLDG CORP        CAP COM SER A    53071M302     4866    41770 SH       DEFINED 1               41770        0        0
LILLY ELI & CO                 COM              532457108     2766    51800 SH       DEFINED 1               51800        0        0
LOEWS CORP                     COM              540424108     1813    36000 SH       DEFINED 1               36000        0        0
LSI CORPORATION                COM              502161102      156    29376 SH       DEFINED 1               29376        0        0
MARCUS CORP                    COM              566330106      112     7240 SH       DEFINED 1                7240        0        0
MARSH & MCLENNAN COS INC       COM              571748102      860    32485 SH       DEFINED 1               32485        0        0
MASCO CORP                     COM              574599106      511    23640 SH       DEFINED 1               23640        0        0
MCCORMICK & CO INC             COM NON VTG      579780206      339     8930 SH       DEFINED 1                8930        0        0
MCDONALDS CORP                 COM              580135101     2173    36876 SH       DEFINED 1               36876        0        0
MEDTRONIC INC                  COM              585055106     2832    56318 SH       DEFINED 1               56318        0        0
MEMC ELECTR MATLS INC          COM              552715104      217     2450 SH       DEFINED 1                2450        0        0
MERCK & CO INC                 COM              589331107      198     3400 SH       DEFINED 1                3400        0        0
MERRILL LYNCH & CO INC         COM              590188108    17737   330421 SH       DEFINED 1              330421        0        0
MICROMET INC                   COM              59509C105       28    13241 SH       DEFINED 1               13241        0        0
MICRON TECHNOLOGY INC          COM              595112103     4950   682700 SH       DEFINED 1              682700        0        0
MICROSOFT CORP                 COM              594918104    13967   392319 SH       DEFINED 1              392319        0        0
MILLENNIUM PHARMACEUTICALS I   COM              599902103     3640   242976 SH       DEFINED 1              242976        0        0
MONSANTO CO NEW                COM              61166W101      394     3520 SH       DEFINED 1                3520        0        0
MONSTER WORLDWIDE INC          COM              611742107      280     8640 SH       DEFINED 1                8640        0        0
MORGAN STANLEY                 COM NEW          617446448     2190    41230 SH       DEFINED 1               41230        0        0
MOTOROLA INC                   COM              620076109    14155   882466 SH       DEFINED 1              882466        0        0
NABI BIOPHARMACEUTICALS        COM              629519109       80    22100 SH       DEFINED 1               22100        0        0
NABORS INDUSTRIES LTD          SHS              G6359F103     1082    39500 SH       DEFINED 1               39500        0        0
NANOGEN INC                    COM              630075109       19    52200 SH       DEFINED 1               52200        0        0
NASDAQ STOCK MARKET INC        COM              631103108     4551    91956 SH       DEFINED 1               91956        0        0
NETWORK APPLIANCE INC          COM              64120L104      427    17090 SH       DEFINED 1               17090        0        0
NEW YORK CMNTY BANCORP INC     COM              649445103     1956   111216 SH       DEFINED 1              111216        0        0
NEWFIELD EXPL CO               COM              651290108     1424    27013 SH       DEFINED 1               27013        0        0
NEWS CORP                      CL B             65248E203     9635   453386 SH       DEFINED 1              453386        0        0
NOKIA CORP                     SPONSORED ADR    654902204     7232   188375 SH       DEFINED 1              188375        0        0
NOVARTIS A G                   SPONSORED ADR    66987V109     3832    70540 SH       DEFINED 1               70540        0        0
NOVELLUS SYS INC               COM              670008101     2769   100400 SH       DEFINED 1              100400        0        0
ORACLE CORP                    COM              68389X105      362    16000 SH       DEFINED 1               16000        0        0
ORBITAL SCIENCES CORP          COM              685564106      401    16330 SH       DEFINED 1               16330        0        0
PALL CORP                      COM              696429307     5012   124300 SH       DEFINED 1              124300        0        0
PARKER HANNIFIN CORP           COM              701094104      214     2840 SH       DEFINED 1                2840        0        0
PEPSICO INC                    COM              713448108     4046    53299 SH       DEFINED 1               53299        0        0
PFIZER INC                     COM              717081103     5168   227349 SH       DEFINED 1              227349        0        0
PITNEY BOWES INC               COM              724479100      233     6100 SH       DEFINED 1                6100        0        0
PMI GROUP INC                  COM              69344M101     1534   115480 SH       DEFINED 1              115480        0        0
PPG INDS INC                   COM              693506107      387     5500 SH       DEFINED 1                5500        0        0
PROCTER & GAMBLE CO            COM              742718109     5006    68174 SH       DEFINED 1               68174        0        0
PROGRESSIVE CORP OHIO          COM              743315103      266    13870 SH       DEFINED 1               13870        0        0
QUALCOMM INC                   COM              747525103     4243   107824 SH       DEFINED 1              107824        0        0
QUANTUM CORP                   COM DSSG         747906204      261    96700 SH       DEFINED 1               96700        0        0
RADIAN GROUP INC               COM              750236101       80     6833 SH       DEFINED 1                6833        0        0
RAYTHEON CO                    COM NEW          755111507     9227   152000 SH       DEFINED 1              152000        0        0
RED HAT INC                    COM              756577102     3462   166120 SH       DEFINED 1              166120        0        0
RF MICRODEVICES INC            COM              749941100      643   112500 SH       DEFINED 1              112500        0        0
ROYAL DUTCH SHELL PLC          SPONS ADR A      780259206      944    11200 SH       DEFINED 1               11200        0        0
SANDISK CORP                   COM              80004C101     6936   209091 SH       DEFINED 1              209091        0        0
SANDRIDGE ENERGY INC           COM              80007P307      104     2900 SH       DEFINED 1                2900        0        0
SCHERING PLOUGH CORP           COM              806605101      542    20320 SH       DEFINED 1               20320        0        0
SCHLUMBERGER LTD               COM              806857108     2883    29300 SH       DEFINED 1               29300        0        0
SEAGATE TECHNOLOGY             SHS              G7945J104     3129   122696 SH       DEFINED 1              122696        0        0
SEMPRA ENERGY                  COM              816851109     2138    34540 SH       DEFINED 1               34540        0        0
SIMPSON MANUFACTURING CO INC   COM              829073105      647    24300 SH       DEFINED 1               24300        0        0
SIRIUS SATELLITE RADIO INC     COM              82966U103     2673   882030 SH       DEFINED 1              882030        0        0
SOCKET COMMUNICATIONS INC      COM              833672108       10    11700 SH       DEFINED 1               11700        0        0
SPECTRA ENERGY CORP            COM              847560109      338    13084 SH       DEFINED 1               13084        0        0
SPRINT NEXTEL CORP             COM SER 1        852061100      864    65785 SH       DEFINED 1               65785        0        0
STANDARD MICROSYSTEMS CORP     COM              853626109      172     4400 SH       DEFINED 1                4400        0        0
STAPLES INC                    COM              855030102      618    26745 SH       DEFINED 1               26745        0        0
STATE STR CORP                 COM              857477103     7162    88200 SH       DEFINED 1               88200        0        0
STREETTRACKS GOLD TR           GOLD SHS         863307104      170     2050 SH       DEFINED 1                2050        0        0
SUNCOR ENERGY INC              COM              867229106      799     7347 SH       DEFINED 1                7347        0        0
SYBASE INC                     COM              871130100       50     1900 SH       DEFINED 1                1900        0        0
TAIWAN SEMICONDUCTOR MFG LTD   SPONSORED ADR    874039100     3562   357606 SH       DEFINED 1              357606        0        0
TARGET CORP                    COM              87612E106      725    14500 SH       DEFINED 1               14500        0        0
TENNECO INC                    COM              880349105      153     5860 SH       DEFINED 1                5860        0        0
TERADYNE INC                   COM              880770102     1000    96659 SH       DEFINED 1               96659        0        0
TEVA PHARMACEUTICAL INDS LTD   ADR              881624209     1162    24980 SH       DEFINED 1               24980        0        0
TEXAS INSTRS INC               COM              882508104    11789   352954 SH       DEFINED 1              352954        0        0
TEXTRON INC                    COM              883203101     2353    32999 SH       DEFINED 1               32999        0        0
TIME WARNER INC                COM              887317105    16936  1025752 SH       DEFINED 1             1025752        0        0
TOLL BROTHERS INC              COM              889478103      611    30420 SH       DEFINED 1               30420        0        0
TOTAL S A                      SPONSORED ADR    89151E109     3071    37170 SH       DEFINED 1               37170        0        0
TRAVELERS COMPANIES INC        COM              89417E109     2083    38700 SH       DEFINED 1               38700        0        0
TYCO ELECTRONICS LTD           COM NEW          G9144P105     6124   164931 SH       DEFINED 1              164931        0        0
TYCO INTL LTD BERMUDA          SHS              G9143X208     6812   171781 SH       DEFINED 1              171781        0        0
UNILEVER PLC                   SPON ADR NEW     904767704     4096   109460 SH       DEFINED 1              109460        0        0
UNITED PARCEL SERVICE INC      CL B             911312106      566     8000 SH       DEFINED 1                8000        0        0
UNITED TECHNOLOGIES CORP       COM              913017109     2235    29200 SH       DEFINED 1               29200        0        0
UNITEDHEALTH GROUP INC         COM              91324P102    24628   423150 SH       DEFINED 1              423150        0        0
VALEANT PHARMACEUTICALS INTL   COM              91911X104     1439   120200 SH       DEFINED 1              120200        0        0
VERIGY LTD                     SHS              Y93691106      572    21018 SH       DEFINED 1               21018        0        0
VERISIGN INC                   COM              92343E102     2002    53210 SH       DEFINED 1               53210        0        0
VERIZON COMMUNICATIONS         COM              92343V104      239     5450 SH       DEFINED 1                5450        0        0
VERTEX PHARMACEUTICALS INC     COM              92532F100     3220   138579 SH       DEFINED 1              138579        0        0
VIACOM INC NEW                 CL B             92553P201     1605    36525 SH       DEFINED 1               36525        0        0
VODAFONE GROUP PLC NEW         SPONS ADR NEW    92857W209     7210   193175 SH       DEFINED 1              193175        0        0
WACHOVIA CORP NEW              COM              929903102      704    18489 SH       DEFINED 1               18489        0        0
WAL MART STORES INC            COM              931142103     7715   162300 SH       DEFINED 1              162300        0        0
WALGREEN CO                    COM              931422109      187     4900 SH       DEFINED 1                4900        0        0
WASTE MGMT INC DEL             COM              94106L109      631    19300 SH       DEFINED 1               19300        0        0
WAVE SYSTEMS CORP              COM NEW          943526301      260   179020 SH       DEFINED 1              179020        0        0
WEATHERFORD INTERNATIONAL LT   COM              G95089101    23448   341800 SH       DEFINED 1              341800        0        0
WELLPOINT INC                  COM              94973V107     1483    16900 SH       DEFINED 1               16900        0        0
WELLS FARGO & CO NEW           COM              949746101     2148    71130 SH       DEFINED 1               71130        0        0
WEYERHAEUSER CO                COM              962166104     3891    52755 SH       DEFINED 1               52755        0        0
WILLIAMS COS INC DEL           COM              969457100     3117    87100 SH       DEFINED 1               87100        0        0
WORLD WRESTLING ENTMT INC      CL A             98156Q108       96     6500 SH       DEFINED 1                6500        0        0
WRIGLEY WM JR CO               COM              982526105     3735    63785 SH       DEFINED 1               63785        0        0
WYETH                          COM              983024100     5259   119000 SH       DEFINED 1              119000        0        0
YAHOO INC                      COM              984332106     4266   183388 SH       DEFINED 1              183388        0        0