The Court's holding declined to set any formula to provide guidance in future cases.

The bank's problem real estate loans and holdings of foreclosed property also declined in the quarter.

The company said holdings of renegotiated bonds declined by $53 million, because of sales to third parties of Mexican Government par bonds.

For example, Hess' holdings declined by a total of $175 million from their high in July, but were worth about $200 million at recent price levels, about $50 million above their 1986 low.

With the new shares, the outsiders' holdings declined to 47 percent, from 51 percent.

Mr. Nygren of the Oakmark fund, another celebrated manager, has also seen some large holdings decline sharply.

Like other large banks, BankAmerica saw its holdings of problem assets decline sharply, especially because of improvements in the real estate market.

These vehicles, while risky in and of themselves, may actually reduce the volatility of an overall portfolio by rising when other holdings decline.

If economic conditions worsen, they say, the funds' holdings could decline even more.

Mr. Tow said in his letter that his holdings in Adelphia had declined in value by 70 percent since March.