<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
Q U A R T E R L Y
R E P O R T
JUNE 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. -- HICKORY PORTFOLIO
PERFORMANCE SINCE INCEPTION
The following table summarizes our results for the six month period ended June
30, 1996, the one year periods ended December 31, 1995, 1994, 1993, and the
period since inception. The table also sets forth average annual total return
data for the fund for the one year period ended June 30, 1996, and for the
period since inception, calculated in accordance with SEC standardized formulas.
<TABLE>
<CAPTION>
DIFFERENCE
PERIOD ENDED HICKORY FUND S&P 500 HICKORY FUND -- S&P 500
- ------------------------------------ ------------- ------------ ------------------------
<S> <C> <C> <C>
June 30, 1996 (6 Mos.) 16.9% 10.1% 6.8%
Dec. 31, 1995 40.5 37.5 3.0
Dec. 31, 1994 -17.3 1.3 -18.6
Dec. 31, 1993 34.1 10.1 24.0
Since Inception (Jan. 1, 1993)
Cumulative 82.1 68.8 13.3
Compound Annual
Average Return 18.7 16.1 2.6
</TABLE>
The Portfolio's average annual total return for one year period ending June 30,
1996, and for the period since inception (January 1, 1993), was 38.1% and 18.7%,
respectively. The return assumes redemption at the end of each period.
2
<PAGE>
The graph below shows the growth in value of an initial $100,000 investment in
Hickory, assuming the reinvestment of all capital gain distributions and
dividends, compared to the growth in value of $100,000 invested in the S&P 500,
also assuming dividend reinvestment. Hickory's performance numbers are
calculated after deducting all fees and expenses.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HICKORY QUARTERLY REPORT GRAPH
<S> <C> <C>
Hickory S&P 500
Value Value
Ending $ 25,000 $ 25,000
--------- ---------
12/31/92 $ 100,000 $ 100,000
01/31/93 $ 109,800 $ 100,835
02/28/93 $ 113,000 $ 102,208
03/31/93 $ 111,470 $ 104,363
04/30/93 $ 102,130 $ 101,840
05/31/93 $ 107,010 $ 104,555
06/30/93 $ 107,690 $ 104,860
07/31/93 $ 110,900 $ 104,437
08/31/93 $ 119,500 $ 108,390
09/30/93 $ 120,390 $ 107,558
10/31/93 $ 128,220 $ 109,782
11/30/93 $ 124,220 $ 108,739
12/31/93 $ 134,062 $ 110,053
01/31/94 $ 132,004 $ 113,791
02/28/94 $ 129,836 $ 110,704
03/31/94 $ 122,739 $ 105,884
04/30/94 $ 121,569 $ 107,243
05/31/94 $ 122,690 $ 108,996
06/30/94 $ 116,808 $ 106,326
07/31/94 $ 116,099 $ 109,815
08/31/94 $ 123,019 $ 114,308
09/30/94 $ 121,713 $ 111,517
10/31/94 $ 120,150 $ 114,013
11/30/94 $ 113,488 $ 109,865
12/31/94 $ 110,886 $ 111,491
01/31/95 $ 111,325 $ 114,380
02/28/95 $ 115,922 $ 118,832
03/31/95 $ 117,615 $ 122,333
04/30/95 $ 117,299 $ 125,933
05/31/95 $ 123,792 $ 130,954
06/30/95 $ 131,904 $ 133,993
07/31/95 $ 139,180 $ 138,434
08/31/95 $ 148,752 $ 138,779
09/30/95 $ 155,065 $ 144,633
10/31/95 $ 148,519 $ 144,116
11/30/95 $ 153,098 $ 150,435
12/31/95 $ 155,754 $ 153,332
01/31/96 $ 163,839 $ 158,545
02/29/96 $ 165,921 $ 160,018
03/31/96 $ 165,348 $ 161,558
04/30/96 $ 169,045 $ 163,938
05/31/96 $ 177,809 $ 168,157
06/30/96 $ 182,123 $ 168,798
</TABLE>
This information represents past performance of the Portfolio and is not
indicative of future performance. The investment return and 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. The index used for comparison
purposes is the S&P 500 Index which consists of 500 companies. The index is
unmanaged and widely recognized as representative of the equity market in
general. Information relating to the S&P 500 assumes reinvestment of dividends.
Additional information is available from Wallace R. Weitz & Co. at the address
listed on the front cover.
3
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
JUNE 30, 1996 - QUARTERLY REPORT
July 5, 1996
Dear Fellow Shareholders:
Our portfolio continued to perform well during the second quarter of 1996,
both in absolute terms and relative to the overall stock market. The table below
summarizes the recent performance of Hickory and the S&P 500 (including
reinvested dividends).
<TABLE>
<CAPTION>
HICKORY S&P 500
PERIOD TOTAL RETURN TOTAL RETURN
- ------------------------ --------------- ---------------
<S> <C> <C>
Second Quarter 1996 10.1% 4.5%
First Half 1996 16.9% 10.1%
Last 12 months
(7-1-95 to 6-30-96) 38.1% 26.0%
</TABLE>
As you think about this table remember that the long run average annual return
from common stocks is about 10 percent. The last twelve months were not a
typical year in the stock market.
REVIEW AND OUTLOOK
In the last three quarterly reports I have mentioned some of my concerns
about the overall stock market. I have also told you that I am quite comfortable
with the stocks we own in Hickory. Thus far I have been batting .500: Hickory
has performed quite well, even better than I expected, but my concerns about the
stock market have been, up to now, unfounded. In this report I want to cover
three points: why I continue to worry about the stock market, how I have been
managing Hickory in response to these concerns, and what I think all of this may
mean for the future.
My fears about the overall stock market boil down to three main points:
earnings are at risk, valuations are high, and speculative juices are flowing
freely. Corporate America has been enjoying an ideal profit environment over the
last few years. The economy has been growing slowly, inflation is tame, and
export opportunities have been large. The result has been profit levels that are
considerably above long term averages. I do not believe that we have entered a
new era of permanent prosperity and, therefore, I do believe that sooner or
later, profit levels will return to more normal, LOWER levels.
Since I believe in calculating value on a company by company basis, and
since I do not think I know enough about more than a fraction of the 500
companies in the S&P 500 to estimate a value, I have always been a little
reluctant to declare the stock market over valued or under valued. However, I am
finding it harder to duck the question. I think it has been true for quite
awhile that dividend yields have been abnormally low and price to book ratios
have been abnormally high. Price to earnings ratios for the overall market look
high, but not ridiculous compared to previous eras, particularly the 1960's.
However, the combination of relatively high price to earnings ratios and very
high earnings levels leaves little if any room for error in the overall market.
4
<PAGE>
Finally, over the last few months the examples of froth in the stock
market have been coming at a frenzied pace. The IPO market has been very hot.
Stocks having anything to do with the internet, however remote, command sky high
prices. Previously unknown companies suddenly get billion dollar market
valuations. The list goes on and on.
So what have I been doing to position our investments for this
environment? I have modified my strategy somewhat, but the changes have been
relatively minor. Regular readers of these letters shouldn't be surprised by
this. I have told you repeatedly that I will strive to buy growing value, priced
at a discount. I will not deviate from that approach.
There are, however, several variations to this approach, and I have been
shifting the emphasis among the variations. When looking for value stocks, I
almost always have to make a trade-off among three variables: the price paid
relative to current value, the rate at which I expect value to increase over the
years, and the company's business and financial risk. It is almost never true
that the least expensive stock also has the best long-term growth prospects and
the least risk.
In an environment where I think the average company will find it difficult
to grow earnings, I think it makes sense to focus on the quality of the business
and the strength of its future growth prospects. I am still very much focused on
value, but I have been willing to pay a little more for the right kind of
company. For this reason over the past year I have sold companies like Esco
Electronics and Presley, which I viewed as mediocre, but very cheap businesses.
Now does not seem like the time to continue to wait for better prices. I have
put more emphasis on excellent businesses with good current results and strong
long-term growth prospects. I consider my new positions in cellular companies
(360 Communications, Cellular Communications of Puerto Rico, and Commnet
Cellular) and in First USA, a credit card specialist, to fit this description.
In an environment where speculative excesses are great, I have had a
particularly critical eye on any stock that has experienced a significant price
increase. I will never sell a stock just because it has gone up in price, but I
am trying to be particularly harsh on those stocks that have gone up the most.
For this reason, we no longer own Protection One or Digital Systems, and I have
sold almost 70 percent of our shares of Imperial Credit. Selling stocks that are
rising rapidly in a momentum driven market is a good way to miss out on
potential profits, but I find I worry a lot less with my approach.
As always I really don't know what the future holds for the stock market,
but I remain optimistic about Hickory's long-term prospects. Our stocks are not
likely to double in a year, but neither are our businesses likely to become half
as valuable. This is not an environment where we should expect to repeat our
last twelve month's performance over the next twelve months--I would be happy
with returns that were one third as big. I have, however, had no trouble finding
attractive stocks to keep Hickory fully invested, and I have had no desire to
sell any of my personal position in the fund. The future for our type of
investing will always look bright.
Sincerely,
/s/ Richard F. Lawson
Richard F. Lawson
Portfolio Manager
5
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WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST MARKET VALUE
- --------- -------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 93.7%
BANKING -- 3.2%
1,000 Wells Fargo & Co. $ 88,506 $ 238,875
-------------- -------------
CABLE TELEVISION -- 13.8%
33,000 Adelphia Communications CL A* 329,625 247,500
14,000 Comcast Corporation CL A 220,928 259,000
20,000 Tele-Communications, Inc. CL A* 322,592 362,500
6,000 Tele-Communications Liberty Media CL A* 133,169 159,000
-------------- -------------
1,006,314 1,028,000
-------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 3.6%
36,000 American Classic Voyages Co.* 386,688 265,500
-------------- -------------
FINANCIAL SERVICES -- 13.8%
12,000 Capital One Financial Corp. 272,571 342,000
3,000 First USA, Inc. 131,430 165,000
10,000 Imperial Credit Industries, Inc.* 58,886 302,500
5,000 Salomon, Inc. 228,175 220,000
-------------- -------------
691,062 1,029,500
-------------- -------------
HEALTH CARE -- 3.3%
6,500 Seafield Capital Corp. 233,375 243,750
-------------- -------------
MEDIA/OTHER -- 7.4%
30,000 Valassis Communications, Inc.* 421,012 555,000
-------------- -------------
MORTGAGE BANKING -- 16.7%
35,000 Countrywide Credit, Inc. 547,546 866,250
31,127 Resource Bancshares Mtg. Grp.* 363,500 377,415
-------------- -------------
911,046 1,243,665
-------------- -------------
</TABLE>
6
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST MARKET VALUE
- --------- -------------- -------------
<C> <S> <C> <C>
REAL ESTATE AND CONSTRUCTION -- 4.7%
6,000 Forest City Enterprises CL A $ 197,678 $ 246,000
5,000 NHP, Inc.* 66,875 103,125
-------------- -------------
264,553 349,125
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REAL ESTATE INVESTMENT TRUSTS -- 13.9%
26,607 Redwood Trust, Inc. 420,094 744,996
18,000 Thornburg Mortgage Asset Corp. 272,580 292,500
-------------- -------------
692,674 1,037,496
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TELECOMMUNICATIONS SERVICES -- 13.3%
9,000 Cellular Communications of Puerto Rico, Inc.* 238,526 292,500
20,000 Centennial Cellular Corp. CL A* 312,912 337,500
5,000 CommNet Cellular, Inc.* 133,125 150,000
9,000 360 Communication Co.* 209,155 216,000
-------------- -------------
893,718 996,000
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Total Common Stocks 5,588,948 6,986,911
-------------- -------------
WARRANTS -- 4.1%
23,500 Redwood Trust, Inc.** 92,547 305,500
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<CAPTION>
FACE
AMOUNT
- ---------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 3.0%
$224,027 Norwest U.S. Government Money Market Fund, 4.9% 224,027 224,027
-------------- -------------
Total Investments in Securities $ 5,905,522*** 7,516,438
-------------- -------------
--------------
Other Liabilities in Excess of Other Assets -- (0.8%) (60,698)
-------------
Total Net Assets -- 100.0% $ 7,455,740
-------------
-------------
Net Asset Value Per Share $ 17.143
-------------
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</TABLE>
*Non-income producing
**Each warrant allows for the purchase of 1 share of common stock at $14.99;
expiration date is 12/31/97
***Also approximates cost for federal income tax purposes
7
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WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
Carroll E. Fredrickson
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
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. -- Hickory 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.
