ACACIA PARTNERS, L.P.

Supplemental Notes to April 10, 1996 FAX

Since we did not have the opportunity to talk, I will try to capsulize my thoughts. The bottom line is, I have reservations about taking a $30M "plunge" into Acacia Partners, L.P. by May 1, 1996. Some of the reasons are outlined in my 4/10/96 fax and other more subjective reasons warrant direct discussion.

For information purposes, below is a summary of the funds under discussion:

Estimated	Comment/

Fund	Value	Dispensation

Provident

Investment Counsel	$38.6M	$30.0M to Index Fund

(Note: $30M investment	$8.6M available for

in index fund proceeding	operations, limited

as planned)	partnership invest-

ment or OCM R.E. fund

TCW-Large Cap	$26.8M	$26.8M available for

limited partnership,

OCM R.E. fund or

other investments

Guaranteed

Investment Contract	$5.5M	Available 5/1/96 and

currently planning to

use for operations

Possible options include:

I.	Limited partnership options

A.	Invest $30M in Acacia

B.	Invest $10M in Acacia

C.	Invest $20M in separate account and $10M in Acacia

D.	Invest $30M in separate account under umbrella of Ruane Cunniff

In the short term , the only above option that appeals to me is option I-D. Greg left me with the impression that, "if pushed," all options may be available but he would clearly prefer I-A or I-C.

II.	Other options

If we decide not to proceed with an investment in Acacia by May 1, 1996 time and opportunity are on our side to make the best decision possible regarding the TCW large cap fund. Since the TCW large cap fund continues to generate positive investment performance in 1996, we are not in a crisis mode to make a quick decision. Opportunities in the near term to provide additional input to the decision include:

1.	April, 1996 presentations by both TCW and Capital Guardian to include asset allocation recommendations.

2.	Presentation by Robert A. Day, TCW, lead investment manager on TCW large cap fund.

3.	Presentation on April 23, 1996 by Michael Palmer, Wilshire Associates, regarding asset allocation report.

4.	Opportunity to update and obtain input from Investment Committee regarding pros and cons of Acacia Partners.

I normally do not like to procrastinate but the other option route would still permit:

1.	Partial $10M investment in Acacia by May 1, 1996 if deemed appropriate. It would not be possible to generate funds for a $30M investment by May 1, 1996.

2.	$30M separate account investment with Greg Alexander (Ruane Cunniff) by June 1, 1996.

3.	The April 22nd and 23rd meetings may provide new ideas and direction regarding the TCW large cap fund or asset allocation for the entire portfolio.

I still have not heard from Bob Blatz regarding the Heritage consultant report.