<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
VALUE PORTFOLIO
S E M I - A N N U A L
R E P O R T
SEPTEMBER 30, 1996
ONE PACIFIC PLACE, SUITE 600
1125 SOUTH 103 STREET
OMAHA, NEBRASKA 68124-6008
402-391-1980
800-232-4161
402-391-2125 FAX
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
PERFORMANCE SINCE INCEPTION
A long-term perspective on our portfolio's performance is shown below. The table
below shows how an investment of $25,000 in the Value Portfolio at its inception
would have grown over the years (after deducting all fees and expenses and
assuming reinvestment of all dividends). The table also sets forth average
annual total return data for the Value Portfolio for the one, five and ten year
periods ended September 30, 1996, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL
$25,000 CAPITAL GAIN REINVESTED VALUE OF ANNUAL RATE
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES OF RETURN
- --------------------------- ----------- ------------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
May 9, 1986 $ 25,000 -- -- $ 25,000 --
Dec. 31, 1986 25,863 -- -- 25,863 3.5%*
Dec. 31, 1987 24,253 264 1,205 25,722 -0.5
Dec. 31, 1988 27,430 299 2,223 29,952 16.5
Dec. 31, 1989 30,763 2,103 3,701 36,567 22.1
Dec. 31, 1990 28,040 2,112 4,500 34,652 -5.2
Dec. 31, 1991 33,940 3,811 6,475 44,226 27.6
Dec. 31, 1992 36,350 6,019 7,884 50,253 13.6
Dec. 31, 1993 42,010 9,114 9,199 60,323 20.0
Dec. 31, 1994 36,075 10,414 7,899 54,388 -9.8
Dec. 31, 1995 45,955 17,447 11,855 75,257 38.4
Sept. 30, 1996 (9 Mos.) 51,328 19,486 13,241 84,055 11.7
</TABLE>
The portfolio's average annual total return for the one, five and ten year
periods ending September 30, 1996, was 16.3%, 14.8%, and 12.5%, respectively.
These returns assume redemption at the end of each period and reinvestment of
dividends.
Since inception, the total amount of capital gains distributions reinvested in
shares was $14,094, and the total amount of "income" distributions reinvested
was $8,015. This information represents past performance of the portfolio and is
not indicative of future performance. The investment return and the principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Additional
information is available from Wallace R. Weitz & Co. at the address listed on
the front cover.
*Return is for the seven month period 5/9/86 through 12/31/86
2
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SEPTEMBER 30, 1996 - SEMI-ANNUAL REPORT
October 9, 1996
TO OUR SHAREHOLDERS
PERFORMANCE REVIEW
The value of our portfolio grew by 1.2% in the 3rd quarter. This brings
our return for the first three quarters of 1996 to 11.7%. The table below
summarizes the total return data (income plus appreciation) for our portfolio,
the average fund in our Lipper Analytical Services peer group (Growth and Income
funds), and the S&P 500.
<TABLE>
<CAPTION>
3RD Q YEAR TO DATE 1 YEAR 5 YEARS 10 YEARS
----------- --------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Value Portfolio 1.2% 11.7% 16.3% 14.8% 12.5%
Ave. G&I Fund 2.9 12.4 17.2 13.8 12.8
S&P 500 3.1 13.5 20.3 15.2 14.9
Information assumes redemption at the end of each period and reinvestment of dividends.
Information for the Value Portfolio and the Average Growth and Income Fund reflects
deduction of fees and expenses. The S&P 500 Index is an unmanaged index consisting of
500 companies. Investment expenses are not deducted from the S&P 500 Index.
</TABLE>
The table on page 2 shows the growth of a $25,000 investment in the Value
Portfolio made at the portfolio's inception in 1986. This table is a fixture in
these quarterly reports, yet I think some shareholders may be confused about how
to read it. For those who would like a refresher course, I have added a more
detailed explanation near the end of this letter.
COMMENTARY
The small net gain for the quarter belies the fact that the market, and
our portfolio, suffered a sharp decline during July. At one point, we had given
back nearly all of our first half gain. The epicenter of the July "correction"
was in the small-capitalization technology stocks, but the shock waves spread
throughout the market. Although the general market recovered and moved to new
highs by the end of the quarter, this was a good reminder that investor anxiety
is high, liquidity is low, and that the market is likely to remain quite
volatile.
The composition of our portfolio has not changed dramatically during the
quarter. Financial companies continued to perform well, and I took some profits
in stocks such as Greenpoint Financial and Imperial Credit Industries that were
approaching my valuation targets. Redwood Trust, which I have discussed in past
letters, was a particular standout, with the common rising 14% in the quarter
while the Redwood warrants rose 31%. Cable stocks, on
3
<PAGE>
the other hand, were particularly weak during July, and I made significant
additions to several positions. Although cable stocks have cost us 3-4
percentage points of return this year, I think they will be good contributors in
the future.
Cable industry problems, both real and perceived, have been
well-publicized. (The cover of the current "Business Week" shouts, "CABLE TV --
THE LOOMING CRISIS.") Capital expenditures for system upgrades to allow for
digital compression, cable modems, and telephony have been very expensive, and
the suppliers of digital converter boxes and modems have only recently begun to
deliver the equipment that will allow cable companies to offer the new services.
Direct broadcast by satellite (DBS) has had good success in gaining new
subscribers, and telephone companies are beginning to offer "wireless cable" as
their first step into the video business.
Rick Lawson and I have spent a great deal of time talking to cable
companies, their competitors, and analysts who study the industry. We continue
to believe that cable company prospects are much better than investors realize.
Now that digital set-top boxes and modems are available, the companies will be
able to earn returns on their recent capital investments. As for the new
competition, coaxial cable is still the best-positioned delivery system. With
digital compression, cable will be able to match the number of channels and
video quality of DBS (at lower cost), and will be able to carry local TV
stations and two-way voice, data, and video which are not available by
satellite. Wireless cable has proven to be technically problematical, and the
phone companies do not seem to be moving aggressively to implement wireless.
They have also conceded (after experiments such as U.S. West's in Omaha) that
"over-building," or building a second, competing coaxial system, is not
economically feasible.
In short, the cable business is no longer a monopoly, but cable has
actually been adding subscribers in the face of DBS because the market is
growing, and we believe that cable is in a good competitive position. Cable
company cash flows are already growing at double digit rates, and the new
products and services should insure future growth. I think the stocks will do
well because the business fundamentals are good, and because expectations are
low.
Looking forward, we continue to face the problem of investing in a
relatively expensive market. I do not believe it makes sense to "get out" of the
market, because it is almost impossible to know when to, and have the courage
to, reenter. Furthermore, the transaction costs (bid-asked spreads as well as
commissions) and (for some) taxes, make market timing an expensive and risky
business. I still believe that the best long-term results are earned by value
investors who have the courage to buy when others are fearful, and to sell when
valuations are excessive. This simple approach does not insulate us from
TEMPORARY declines in market value, but it should produce reasonable returns
without exposing us to PERMANENT loss of capital.
THE "GROWTH OF A $25,000 INVESTMENT" TABLE
Those who have never been curious about how the "$25,000 Table" on page 2
worked will want to skip this section. However, for those who like to dig into
performance statistics to get a longer-term perspective on the sources of our
growth and the tax efficiency of our investment style, the next few paragraphs
are for you. They refer to the table on page 2 which shows how a $25,000
investment in the Value Portfolio would have grown over the past 10+ years.
4
<PAGE>
In the first column, the original $25,000 was invested in shares that have
grown to be worth $51,328 (as net asset value per share has grown from $10.000
to $20.531). This gain of $26,328 on the original shares, represents UNREALIZED
capital gain on which taxes will be deferred until these shares are sold.
The footnote shows the amount of TAXABLE income which has been paid out in
the form of realized long-term capital gains ($14,094), and ordinary income
($8,015) dividends. These amounts were reported on "1099" forms each January,
and taxpayers paid the appropriate income taxes. They now represent the cost
basis for the shares bought through dividend reinvestment. The second and third
columns show the current value of the additional shares which were purchased
through automatic reinvestment of these capital gains and ordinary income
dividends ($19,486 and $13,241, respectively).
The fourth column shows the combined value of the original shares and the
reinvested dividend shares at the end of each period. Thus, an initial
investment of $25,000 on May 9, 1986, with dividends reinvested, has grown in
value to $84,055 on September 30, 1996. The total "cost basis" of these shares
FOR TAX PURPOSES is the original investment ($25,000) + dividends paid and
reinvested ($14,094 + $8,015) = $47,109.
Tracking cost basis becomes very tricky once the investor begins to sell
some of his shares. The IRS allows various methods of calculation, so it is
important to be consistent and to keep good records. Current year quarterly
account statements and year-end statements provide all the required transaction
history to calculate cost basis, and these should be kept for the life of your
investment. Mary Bickels can answer your general questions about the various
methods of determining cost basis, but there is no substitute for a good tax
advisor.
Finally, the fifth column shows the "total return" (income plus
appreciation) for each period. Our portfolio's annual returns have ranged from
- -9.8 to +38.4. I find the five- and ten-year AVERAGE returns listed below the
table more significant, but the annual numbers are a good reminder that
short-term performance is unpredictable.
INVESTMENT QUESTIONS?
Shareholders often have questions about the quarterly report, the
investment portfolio, and our investment philosophy as well as personal
questions about assessing investment risk, diversification, and allocation of
capital among different types of investments. We hope that you will feel free to
call Eric Ball or any of our other analysts and portfolio managers if we can be
helpful in any of these areas. Mary Bickels is also available to help with the
mechanics of IRA's and other retirement accounts and to answer any questions you
might have about your statements or other administrative matters.
Best regards,
/s/ Wallace R. Weitz
Wallace R. Weitz
President
5
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ---------- ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 86.8%
BANKING -- 12.8%
70,000 Bank America Corp. $ 3,381,980 $ 5,748,750
150,000 Bank Plus Corp.* 1,216,250 1,593,750
12,000 Bostonfed Bancorp, Inc. 141,000 159,000
250,000 Dime Bancorp, Inc.* 2,837,275 3,343,750
25,000 First Keystone Financial, Inc.* 340,100 456,250
10,000 Mercantile Bancorporation 303,100 520,000
100,000 PFF Bancorp, Inc.* 1,100,000 1,237,500
100,000 Poughkeepsie Savings Bank 511,875 512,500
62,500 R&G Financial Corp CL B 1,062,500 1,109,375
65,200 Wells Fargo & Co. 10,353,187 16,952,000
------------- -------------
21,247,267 31,632,875
------------- -------------
CABLE TELEVISION -- 18.0%
246,500 Adelphia Communications Corp. CL A* 1,961,718 2,495,812
500,000 Century Communications Corp. CL A* 3,552,170 3,750,000
710,000 Comcast Corporation CL A 11,326,661 10,916,250
700,000 Tele-Communications, Inc. CL A* 11,530,950 10,456,250
328,000 Tele-Communications Liberty Media CL A* 7,748,558 9,389,000
118,000 Time Warner, Inc. 3,723,863 4,557,750
180,000 U.S. West Media Group* 3,261,440 3,037,500
------------- -------------
43,105,360 44,602,562
------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 2.3%
125,000 American Classic Voyages Co.* 1,196,363 1,171,875
4,875 Lady Baltimore Foods, Inc. 227,781 219,375
60,000 Protection One, Inc.* 341,500 757,500
100,000 Seafield Capital Corp. 3,640,575 3,550,000
------------- -------------
5,406,219 5,698,750
------------- -------------
DEFENSE -- 0.1%
30,000 Esco Electronics Corp. 345,550 281,250
------------- -------------
FEDERAL AGENCIES -- 6.0%
40,000 Federal Home Loan Mortgage Corp. 1,523,197 3,915,000
140,000 Federal National Mortgage Association 2,790,950 4,882,500
80,000 Student Loan Marketing Association 3,679,517 5,970,000
------------- -------------
7,993,664 14,767,500
------------- -------------
FINANCIAL SERVICES -- 6.7%
100,000 American Express, Co. 3,354,046 4,625,000
110 Berkshire Hathaway, Inc.* 640,550 3,536,500
128,000 Capital One Financial Corp. 3,107,958 3,824,000
16,500 Imperial Credit Industries, Inc.* 85,125 604,312
65,000 Imperial Thrift & Loan Association* 699,375 885,625
30,000 PS Group, Inc.* 278,125 386,250
60,000 Salomon, Inc. 2,167,071 2,737,500
------------- -------------
10,332,250 16,599,187
------------- -------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ---------- ------------- -------------
<C> <S> <C> <C>
INFORMATION AND DATA PROCESSING -- 2.3%
144,500 BRC Holdings, Inc.* $ 3,652,688 $ 5,202,000
192,600 Intelligent Systems Corp.* 391,376 541,687
------------- -------------
4,044,064 5,743,687
------------- -------------
MORTGAGE BANKING -- 7.2%
480,000 Countrywide Credit Industries, Inc. 8,548,754 12,300,000
428,058 Resource Bancshares Mtg. Grp., Inc. 5,008,501 5,564,754
------------- -------------
13,557,255 17,864,754
------------- -------------
PUBLISHING AND BROADCASTING -- 4.6%
52,700 Daily Journal Corp.* 1,122,366 1,581,000
101,900 Gabelli Global Multimedia Trust, Inc. 703,964 700,562
165,000 Katz Media Group, Inc.* 2,051,963 1,464,375
311,000 Valassis Communications, Inc.* 4,799,485 4,859,375
45,000 Walt Disney Co. 2,597,017 2,851,875
------------- -------------
11,274,795 11,457,187
------------- -------------
REAL ESTATE AND CONSTRUCTION -- 6.3%
515,000 Catellus Development Corp.* 3,515,957 5,085,625
60,000 Forest City Enterprises, Inc. CL A 2,159,453 2,940,000
380,000 NHP, Inc.* 5,926,895 7,196,250
308,000 Presley Companies CL A* 453,725 385,000
------------- -------------
12,056,030 15,606,875
------------- -------------
REAL ESTATE INVESTMENT TRUSTS -- 8.5%
120,000 First Washington Realty Trust, Inc. 1,944,700 2,460,000
140,000 Innkeepers USA Trust 1,286,023 1,575,000
423,746 Redwood Trust, Inc. 8,032,222 13,559,872
130,000 Redwood Trust, Inc. Warrants, Expiring 12/31/97 480,000 2,210,000
79,700 Thornburg Mortgage Asset Corp. 1,158,095 1,295,125
------------- -------------
12,901,040 21,099,997
------------- -------------
TELECOMMUNICATIONS -- 12.0%
280,000 360 Communications Co.* 6,495,028 6,580,000
210,000 Airtouch Communications, Inc.* 6,033,127 5,801,250
251,500 Cellular Communications of Puerto Rico, Inc.* 6,753,808 6,413,250
590,400 Centennial Cellular Corp. CL A* 9,303,140 8,044,200
45,800 CommNet Cellular, Inc.* 1,240,792 1,322,475
38,200 Telephone and Data Systems, Inc. 1,424,644 1,537,550
------------- -------------
31,250,539 29,698,725
------------- -------------
Total Common Stocks 173,514,033 215,053,349
------------- -------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ---------- ------------- -------------
<C> <S> <C> <C>
NON-CONVERTIBLE PREFERRED STOCKS -- 1.5%
10,000 Community Bank 13% Pfd. Series B $ 257,550 $ 272,500
30,000 Prime Retail, Inc. 10.5% Pfd. Series A 645,000 727,500
69,941 Riggs National 10.75% Pfd. Series B 1,852,839 1,993,319
34,000 River Bank America 15.0% Pfd. Series A 845,750 782,000
------------- -------------
Total Non-Convertible Preferred Stocks 3,601,139 3,775,319
------------- -------------
<CAPTION>
FACE
AMOUNT
- ----------
<C> <S> <C> <C>
CORPORATE BONDS -- 0.7%
$250,000 Norwest Financial Corp. Notes 7.1% 11/15/96 250,281 250,383
500,000 Salomon, Inc. Notes 7.125% 8/01/99 500,000 501,890
900,000 Dime Savings 10.5% 11/15/05 961,928 974,250
------------- -------------
Total Corporate Bonds 1,712,209 1,726,523
------------- -------------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 7.8%
1,850,000 U. S. Treasury Bill 10/03/96 1,849,477 1,849,235
2,500,000 Federal Home Loan Bank Discount Note 12/19/96 2,470,869 2,471,445
1,000,000 U.S. Treasury Note 6.75% 5/31/97 1,000,000 1,006,719
750,000 U.S. Treasury Note 6.0% 5/31/98 747,516 749,180
4,750,000 Federal Natl. Mtg. Assn. 6.625% 7/12/00 4,750,849 4,764,102
3,000,000 Federal Home Loan Bank 6.535% 3/21/01 3,000,000 2,973,747
2,000,000 Federal Home Loan Bank 6.55% 11/15/02 2,000,000 1,961,172
2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,497,969 2,514,795
1,000,000 Federal Home Loan Bank 6.44% 11/28/05 1,001,442 967,813
------------- -------------
Total U.S. Government and Agency Securities 19,318,122 19,258,208
------------- -------------
SHORT-TERM SECURITIES -- 3.5%
8,801,107 Norwest U.S. Government Money Market Fund, 5.0% 8,801,107 8,801,107
------------- -------------
Total Investments in Securities $ 206,946,610 248,614,506
------------- -------------
-------------
Other Liabilities in Excess of Other Assets -- ( 0.3%) (726,777)
-------------
Total Net Assets -- 100% $ 247,887,729
-------------
-------------
Net Asset Value Per Share $ 20.531
-------------
-------------
</TABLE>
*Non-income producing
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $206,946,610) $248,614,506
Receivable for securities sold 585,570
Accrued interest and dividends receivable 517,847
------------
Total assets 249,717,923
------------
Liabilities:
Accrued expenses 5,306
Due to adviser 242,150
Payable for securities purchased 1,582,738
------------
Total liabilities 1,830,194
------------
Net assets applicable to outstanding capital stock $247,887,729
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 12,074
Additional paid-in capital 193,031,769
Accumulated undistributed net investment income 1,007,678
Accumulated undistributed net realized gains 12,168,312
Net unrealized appreciation of investments (note 5) 41,667,896
------------
Total representing net assets applicable to shares outstanding $247,887,729
------------
------------
Net asset value per share of outstanding capital stock
(12,073,906 shares outstanding) $ 20.531
------------
------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Dividends $ 1,474,561
Interest 781,913
-----------
Total investment income 2,256,474
-----------
Expenses (note 3):
Investment advisory fee 1,188,816
Administrative fee 241,794
Other expenses 125,825
-----------
Total expenses 1,556,435
-----------
Net investment income 700,039
-----------
Realized and unrealized gain on investments:
Realized gain on investments 5,226,856
Net unrealized appreciation of investments 6,834,012
-----------
Net realized and unrealized gain on investments 12,060,868
-----------
Net increase in net assets resulting from operations $12,760,907
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT. 30, 1996 YEAR ENDED
(UNAUDITED) MARCH 31, 1996
----------------- --------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 700,039 $ 1,300,132
Net realized gain 5,226,856 15,297,344
Unrealized appreciation 6,834,012 25,480,942
----------------- --------------
Net increase in net assets resulting from operations 12,760,907 42,078,418
----------------- --------------
Distributions to shareholders from:
Net investment income -- (3,147,890)
Net realized gain -- (8,264,279)
----------------- --------------
Total distributions -- (11,412,169)
----------------- --------------
Capital share transactions (note 4):
Proceeds from sales 75,710,804 36,606,902
Payments for redemptions (11,092,838) (26,684,496)
Reinvestment of distributions -- 11,143,806
----------------- --------------
Total increase from capital share transactions 64,617,966 21,066,212
----------------- --------------
Total increase in net assets 77,378,873 51,732,461
----------------- --------------
Net assets:
Beginning of period 170,508,856 118,776,395
----------------- --------------
End of period $ 247,887,729 $ 170,508,856
----------------- --------------
----------------- --------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Value Portfolio and its predecessor outstanding throughout the periods
indicated. On April 1, 1990, Weitz Value Fund, Inc. was merged into the Fund and
renamed the Value Portfolio. Information prior to that date is for a share of
the Weitz Value Fund, Inc.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPT. 30, 1996 ----------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993
-------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 19.457 $ 15.552 $ 15.684 $ 15.526 $ 13.926
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.049 0.157 0.144 0.089 0.221
Net gains or losses on securities (realized and
unrealized) 1.025 5.247 0.452 0.683 2.199
-------------- ------------ ------------ ----------- -----------
Total from investment operations 1.074 5.404 0.596 0.772 2.420
LESS DISTRIBUTIONS:
Dividends from net investment income -- (0.418) -- (0.023) (0.275)
Distributions from realized gains -- (1.081) (0.728) (0.591) (0.545)
-------------- ------------ ------------ ----------- -----------
Total distributions -- (1.499) (0.728) (0.614) (0.820)
-------------- ------------ ------------ ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 20.531 $ 19.457 $ 15.552 $ 15.684 $ 15.526
-------------- ------------ ------------ ----------- -----------
-------------- ------------ ------------ ----------- -----------
TOTAL RETURN 5.5%+ 35.9% 4.1% 4.9% 18.3%
RATIOS/SUPPLEMENTAL DATA:
Net assets, End of period $247,887,729 $170,508,856 $118,776,395 $103,839,686 $67,617,098
Ratio of expenses to average net assets 1.31%* 1.35% 1.42% 1.41% 1.35%
Ratio of net investment income to average net assets 0.59%* 0.91% 1.06% 0.64% 1.66%
Portfolio turnover rate 19% 40% 28% 23% 23%
Average commission rate paid (per share) $0.0429++
<CAPTION>
1992 1991 1990 1989 1988
----------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 12.842 $ 11.854 $ 11.772 $ 10.517 $ 10.792
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.360 0.319 0.421 0.335 0.326
Net gains or losses on securities (realized and
unrealized) 1.445 1.117 0.720 1.238 (0.002)
----------- ----------- ----------- ----------- --------------
Total from investment operations 1.805 1.436 1.141 1.573 0.324
LESS DISTRIBUTIONS:
Dividends from net investment income (0.324) (0.380) (0.430) (0.318) (0.487)
Distributions from realized gains (0.397) (0.068) (0.629) -- (0.112)
----------- ----------- ----------- ----------- --------------
Total distributions (0.721) (0.448) (1.059) (0.318) (0.599)
----------- ----------- ----------- ----------- --------------
NET ASSET VALUE, END OF PERIOD $ 13.926 $ 12.842 $ 11.854 $ 11.772 $ 10.517
----------- ----------- ----------- ----------- --------------
----------- ----------- ----------- ----------- --------------
TOTAL RETURN 14.3% 12.6% 9.6% 15.2% 3.4%
RATIOS/SUPPLEMENTAL DATA:
Net assets, End of period $35,948,398 $27,502,696 $24,540,101 $16,393,851 $9,219,148
Ratio of expenses to average net assets 1.40% 1.49% 1.46% 1.50% 1.50%
Ratio of net investment income to average net assets 2.75% 2.71% 3.71% 3.30% 3.47%
Portfolio turnover rate 35% 29% 49% 25% 68%
Average commission rate paid (per share)
</TABLE>
* Annualized
+ Not annualized
++ Required by regulations issued in 1995.
See accompanying notes to financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(UNAUDITED)
(1) ORGANIZATION AND BUSINESS CHANGES
Weitz Series Fund, Inc. (the "Fund"), is registered under the Investment
Company Act of 1940 as an open-end management investment company issuing
shares in series, each series representing a distinct portfolio with its own
investment objectives and policies. At September 30, 1996, the Fund had four
series in operation: the Value Portfolio, the Fixed Income Portfolio, the
Government Money Market Portfolio, and the Hickory Portfolio. The
accompanying financial statements present the financial position and results
of operations of the Value Portfolio (the "Portfolio").
The Portfolio's investment objective is capital appreciation. The Portfolio
intends to invest principally in common stocks, preferred stocks and a
variety of securities convertible into equity such as rights, warrants,
preferred stocks and convertible bonds. The following accounting policies
are in accordance with accounting policies generally accepted in the
investment company industry.
(2) SIGNIFICANT ACCOUNTING POLICIES
(A)VALUATION OF INVESTMENTS
Investments are carried at market determined using the following
valuation methods:
- Securities traded on a national or regional securities exchange are
valued at the last quoted sales price.
- Securities not listed on an exchange or securities in which there
were no reported transactions will be valued at the mean between the
last current closing bid and ask prices.
- Securities or other assets for which reliable recent market
quotations are not readily available will be valued at fair market
value as determined in good faith by or under the direction of the
Fund's Board of Directors or a committee of the Board.
All securities are valued in accordance with the above noted policies at
the close of each business day.
When the Portfolio writes a call option, an amount equal to the premium
received by the Portfolio is included in the Portfolio's statement of
assets and liabilities as a liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of the
option written. The current market value of a traded option is the last
sales price on the principal exchange on which such option is traded, or,
in the absence of such sale, the latest ask quotation. When an option
expires on its stipulated expiration date or the Portfolio enters into a
closing purchase transaction, the Portfolio realizes a gain (or loss if
the cost of a closing purchase transaction exceeds the premium received
when the option was sold) without regard to any unrealized gain or loss
on the underlying security, and the liability
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related to such option is extinguished. When a call option is exercised,
the Portfolio realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium
originally received.
The risk in writing a call option is that the Portfolio gives up the
opportunity of profit if the market price of the security increases. The
Portfolio also has the additional risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist.
B) FEDERAL INCOME TAXES
Since the Portfolio's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders, no provision for
income or excise taxes is required.
Net investment income and net realized gains may differ for financial
statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from
their ultimate characterization for Federal income tax purposes. Also,
due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or
realized gains were recorded by the Portfolio.
(C)SECURITY TRANSACTIONS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest, including
the amortization of discount or premium, is accrued as earned.
Realized gains or losses are determined by specifically identifying the
issue sold.
(D)DIVIDEND POLICY
The Portfolio will declare and distribute income dividends and capital
gains distributions as may be required to qualify as a regulated
investment company under the Internal Revenue Code. All dividends and
distributions will be reinvested automatically unless the shareholder
elects otherwise.
(E)USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net
assets from operations during the period. Actual results could differ
from those estimates.
(3) RELATED PARTY TRANSACTIONS
The Fund and Portfolio have retained Wallace R. Weitz & Company (the
"Adviser") as their exclusive investment adviser. In addition, the Fund has
an agreement with Weitz Securities, Inc. to act as distributor for the
Portfolio's shares. Certain officers and directors of the Fund are also
officers and directors of the Adviser and Weitz Securities, Inc.
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Under the terms of a management and investment advisory agreement, the
Adviser receives an investment advisory fee equal to 1% per annum of the
Portfolio's average daily net asset value. The Adviser has agreed to
reimburse the Portfolio up to the amount of advisory fees paid to the extent
that total expenses exceed 1.50% of the Portfolio's average annual daily net
asset value. The expenses incurred by the Portfolio did not exceed the
percentage limitation during the six months ended September 30, 1996.
Under the terms of an administration agreement, certain services are being
provided including the transfer of shares, disbursement of dividends, fund
accounting and related administrative services of the Fund for which the
Adviser is being paid a monthly fee. During the six months ended September
30, 1996, the fee was calculated at an average annual rate of .20% of the
Portfolio's average daily net assets.
Weitz Securities, Inc. as distributor, received no compensation for
distribution of Fund shares.
The Fund pays directors (other than directors who are also officers of the
Adviser) an annual retainer of $2,000 and fees of $800 per board meeting
attended and $200 per audit committee meeting attended, which are allocated
to the various portfolios. During the six months ended September 30, 1996,
the Value Portfolio paid directors' fees of $10,024.
(4) CAPITAL STOCK
The Fund is authorized to issue a total of 100 million shares of common
stock in series with a par value of $.001. Thirty million of these shares
have been authorized by the Board of Directors to be issued in the series
designated Value Portfolio shares, of which 12,073,906 shares are
outstanding at September 30, 1996. The Board of Directors may authorize
additional shares in other series of the Fund's shares without shareholder
approval. Each share of stock will have a pro rata interest in the assets of
the Portfolio to which the stock of that series relates and will have no
interest in the assets of any other portfolio.
Transactions in the capital stock of the Portfolio are summarized as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1996 YEAR ENDED
(UNAUDITED) MARCH 31, 1996
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<S> <C> <C>
Transactions in shares:
Shares issued.................................................... 3,879,872 1,986,630
Shares redeemed.................................................. (569,225) (1,491,710)
Reinvested dividends............................................. -- 631,158
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Net increase................................................... 3,310,647 1,126,078
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</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $53,303,320 and
$44,550,641, respectively. The cost of investments is the same for financial
reporting and Federal income tax purposes. At September 30, 1996, the
aggregate gross unrealized appreciation and depreciation, based on cost for
Federal income tax purposes, were $48,462,787 and $6,794,891, respectively.
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WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
Delmer L. Toebben
Wallace R. Weitz
OFFICERS
Wallace R. Weitz, President
Mary K. Beerling, Vice-President & Secretary
Linda L. Lawson, Vice-President
Richard F. Lawson, Vice-President
INVESTMENT ADVISER
Wallace R. Weitz & Company
DISTRIBUTOR
Weitz Securities, Inc.
CUSTODIAN
Norwest Bank Nebraska, N.A.
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Wallace R. Weitz & Company
This report has been prepared for the information of shareholders of Weitz
Series Fund, Inc. -- Value Portfolio and is not authorized for distribution to
prospective investors unless preceded or accompanied by a current prospectus
which describes the Fund's objectives, policies and other information.
