<PAGE>
- - --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
Q U A R T E R L Y
R E P O R T
DECEMBER 31, 1995
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 one year periods ended
December 31, 1995, December 31, 1994, and December 31, 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 December 31, 1995, 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>
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 55.8 53.3 2.5
Compound Annual
Average Return 15.9 15.3 0.6
</TABLE>
The Portfolio's average annual total return for one year and for the period
since inception (January 1, 1993), was 40.5% and 15.9%, 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.
<TABLE>
<CAPTION>
HICKORY QUARTERLY REPORT GRAPH
HICKORY PORTFOLIO S&P 500
------------------------------------ ------------------------
CUMULATIVE VALUE CUMULATIVE VALUE
ENDING RETURN $25,000 RETURN $25,000
<S> <C> <C> <C> <C> <C>
Ince 12/31/92 0 $ 100,000 0.00000 $ 100,000
01/31/93 0.098 $ 109,800 0.00835 $ 100,835
02/28/93 0.13 $ 113,000 0.02208 $ 102,208
3/93 03/31/93 0.1147 $ 111,470 0.04363 $ 104,363
04/30/93 0.0213 $ 102,130 0.01840 $ 101,840
05/31/93 0.0701 $ 107,010 0.04555 $ 104,555
6/93 06/30/93 0.0769 $ 107,690 0.04860 $ 104,860
07/31/93 0.109 $ 110,900 0.04437 $ 104,437
08/31/93 0.195 $ 119,500 0.08390 $ 108,390
9/93 09/30/93 0.2039 $ 120,390 0.07558 $ 107,558
10/31/93 0.2822 $ 128,220 0.09782 $ 109,782
11/30/93 0.2422 $ 124,220 0.08739 $ 108,739
12/9 12/31/93 0.34062 $ 134,062 0.10053 $ 110,053
01/31/94 0.320042 $ 132,004 0.13791 $ 113,791
02/28/94 0.298359 $ 129,836 0.10704 $ 110,704
3/94 03/31/94 0.227388 $ 122,739 0.05884 $ 105,884
04/30/94 0.215688 $ 121,569 0.07243 $ 107,243
05/31/94 0.226895 $ 122,690 0.08996 $ 108,996
6/94 06/30/94 0.168085 $ 116,808 0.06326 $ 106,326
07/31/94 0.16099 $ 116,099 0.09815 $ 109,815
08/31/94 0.230185 $ 123,019 0.14308 $ 114,308
9/94 09/30/94 0.217128 $ 121,713 0.11517 $ 111,517
10/31/94 0.2015 $ 120,150 0.14013 $ 114,013
11/30/94 0.134875 $ 113,488 0.09865 $ 109,865
12/9 12/31/94 0.108864 $ 110,886 0.11491 $ 111,491
01/31/95 0.113252 $ 111,325 0.14380 $ 114,380
02/28/95 0.159224 $ 115,922 0.18832 $ 118,832
3/95 03/31/95 0.17615 $ 117,615 0.22333 $ 122,333
04/30/95 0.172985 $ 117,299 0.25933 $ 125,933
05/31/95 0.237922 $ 123,792 0.30954 $ 130,954
6/95 06/30/95 0.31904 $ 131,904 0.33993 $ 133,993
07/31/95 0.391803 $ 139,180 0.38434 $ 138,434
08/31/95 0.487516 $ 148,752 0.38779 $ 138,779
9/95 09/30/95 0.550654 $ 155,065 0.44633 $ 144,633
10/31/95 0.485189 $ 148,519 0.44116 $ 144,116
11/30/95 0.530983 $ 153,098 0.50435 $ 150,435
12/9 12/31/95 0.557545 $ 155,754 0.53332 $ 153,332
</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
DECEMBER 31, 1995 - QUARTERLY REPORT
January 8, 1996
Dear Fellow Shareholder:
We ended 1995 quietly, losing a little ground relative to the S&P 500. Our
final results were nevertheless quite satisfying. During the quarter, Hickory
gained 0.4% to finish the year up 40.5%. Over the same periods, the S&P 500 had
total returns of 6.0% and 37.5%, respectively. The S&P's return was the best
since 1958. Needless to say, I do not expect 1996 will be as rewarding.
REVIEW AND OUTLOOK
In previous letters I have told you that my goal is to maximize Hickory's
long-term results, and that by long-term I mean at least three to five years.
Hickory is now three years old, and for the first time it is possible to review
Hickory's long-term performance. Therefore, I plan to focus this letter on that
topic instead of reviewing the most recent quarter. If you have any questions
about the last three months, please call. I would be happy to discuss it with
you.
Three aspects of Hickory's performance seem relevant: pre-tax returns,
after-tax returns, and volatility. I will look at these topics in that order.
The table and graph on the previous pages show Hickory's returns relative to
the S&P 500 Index. Hickory's numbers are calculated after all fund expenses are
paid, but before income taxes are considered, and are therefore PRE-TAX numbers.
Over the fund's three-year life, Hickory's pre-tax return averaged 15.9% per
year, while the S&P 500 had an average annual return of 15.3%. As a point of
further comparison, these results can be compared to other similar mutual funds.
Lipper, which tracks the performance of mutual funds, considers Hickory to be a
"growth" fund. Lipper reports that the average "growth" fund had an average
annual return of 13.8% over this three-year period. Based on these numbers, I
believe we have reason to be pleased. Not only have our absolute results been
good, but we have also done well relative to the stock market as a whole and
relative to similar mutual funds.
I need to emphasize that this was a very good period for stocks in general.
The long-run average annual return for stocks is about 10%. Because I do not
believe that stocks have permanently become better investments, I think we
should expect less robust results in future years.
Since many of you are subject to taxation on the dividends Hickory pays, I
thought it would be useful to look at Hickory's AFTER-TAX returns. Since
everyone's tax situation is somewhat different, there is no way to make one
calculation that applies equally to all shareholders. We can, however, get a
rough idea by making some assumptions. Morningstar is in the business of
analyzing mutual funds. They calculate after-tax returns by assuming that the
top federal tax rate (39.6% for ordinary income and 28% for long-term capital
gains) is paid immediately on all distributions, and that the remainder is
reinvested in the fund. Using the Morningstar assumptions, Hickory's after-tax
return over the past three years averaged 15.1% per year. In other words, a
federal taxpaying shareholder, subject to the highest tax rates, would have
enjoyed an after-tax return that was 95% as large as a shareholder who was not
subject to current taxes (15.1% divided by 15.9%).
4
<PAGE>
I believe that Hickory's tax sensitivity has been quite good. Morningstar
calculates the average after-tax returns for growth mutual funds, but the
numbers as of year-end 1995 are not yet available. The most recent numbers,
published in October, suggest that the after-tax return over the most recent
three-year period of the average growth mutual fund was 86% of its pre-tax
return. I believe that Hickory's superior performance is the result of three
factors. First, I do not generally focus on the dividends paid on the stocks we
own. As a result, Hickory's stocks as a group have below average dividend
yields, generating less current taxable income. Second, I prefer not to trade
actively. Hickory's turnover has generally been 20% to 30% per year, much lower
than the typical stock mutual fund. When we find good stocks and hold them for a
long time, we are able to put off paying capital gains taxes until later.
Finally, Hickory's total assets have been growing rapidly. Hickory started 1993
with less than $1 million in assets and now has more than $5 million. Fresh
money reduces the size of dividends paid per share, reducing current tax bills.
Looking forward, I expect that the first two factors will continue to help
Hickory be tax efficient. The third factor might not help us going forward. I
can't predict how rapidly Hickory's assets will grow over the next few years. I
am sure, however, that Hickory's assets will not grow by five times every three
years forever. My best guess is that Hickory will continue to be more tax
efficient than the average mutual fund, but that it will not be as efficient as
it has been these last three years.
Thus far, the review of Hickory's three-year performance has been positive.
At this point, you should be asking yourself, "What's the catch?" The catch is
clearly volatility. Hickory has not outperformed the stock market every year,
and not every stock I have bought for Hickory has worked. Look again at the
table on the inside cover of this report and focus on 1994. I am not proud of
our results that year, and will be trying very hard to avoid another year like
that. However, you as shareholders need to remember that a year as bad as 1994,
or worse, COULD happen again. If worrying about that possibility will keep you
up at night, Hickory is not the investment for you. If, however, your goals are
focused on the long term, as mine are, I believe that Hickory can continue to
serve you well.
Finally, what strategies have I used to accomplish these results? I have
consistently used the strategies I have been telling you about for the last
three years. I look for growing value, priced at a discount. I concentrate our
assets on those companies and industries that I think have the most promise. I
do not try to mirror the stock market as a whole. I buy out-of-favor companies
knowing that they may stay out-of-favor for awhile. Through much of this period,
we have been vastly overweighted in financial stocks and in media and
telecommunications stocks such as cable and cellular. The industries may change,
but the approach will not.
As to the future, I am still cautiously optimistic. The overall stock market
worries me, and I am having trouble finding ridiculously cheap stocks, but I am
still able to fill Hickory with the stocks of good companies priced
attractively. I would be shocked if 1996 turns out as well as 1995, but that is
not a reasonable goal. I continue to believe that my approach can lead to
reasonable results in the years ahead.
As always, I welcome your questions. Thanks for your continuing support.
Sincerely,
/s/ Richard F. Lawson
Richard F. Lawson
Portfolio Manager
5
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST MARKET VALUE
- - -------- ---------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- 97.3%
BANKING -- 4.0%
1,000 Wells Fargo & Co. $ 88,506 $ 216,000
---------- ------------
CABLE TELEVISION -- 13.1%
11,000 Adelphia Communications CL A* 166,000 77,000
10,000 Comcast Corporation CL A 149,928 181,875
17,000 Tele-Communications, Inc. CL A* 269,753 337,875
4,250 Tele-Communications Liberty Media Gr -A* 86,356 114,219
---------- ------------
672,037 710,969
---------- ------------
CONSUMER PRODUCTS AND SERVICES -- 6.1%
23,000 American Classic Voyages Co. 271,562 250,125
8,000 Protection One, Inc.* 42,000 82,000
---------- ------------
313,562 332,125
---------- ------------
DEFENSE -- 1.3%
7,500 Esco Electronics Corporation* 60,450 70,312
---------- ------------
FINANCIAL SERVICES -- 17.9%
8,000 Capital One Financial Corp. 177,831 191,000
1,250 Guarantee Life Companies, Inc.* 16,250 19,687
22,500 Imperial Credit Industries, Inc.* 155,750 489,375
20,000 NAB Asset Corporation* 72,669 90,000
5,000 Salomon, Inc. 228,175 177,500
---------- ------------
650,675 967,562
---------- ------------
HEALTH CARE -- 4.1%
6,500 Seafield Capital Corp. 233,375 221,000
---------- ------------
MEDIA/OTHER -- 6.5%
20,000 Valassis Communications, Inc.* 255,075 350,000
---------- ------------
MORTGAGE BANKING -- 16.1%
32,000 Countrywide Credit, Inc. 484,366 696,000
12,127 Resource Bancshares Mtg. Grp.* 85,000 172,810
---------- ------------
569,366 868,810
---------- ------------
</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 -- 4.5%
9,000 Catellus Development Corp.* $ 57,885 $ 54,000
3,000 Forest City Enterprises CL A 101,498 97,125
5,000 NHP, Inc.* 66,875 92,500
---------- ------------
226,258 243,625
---------- ------------
REAL ESTATE INVESTMENT TRUSTS -- 12.2%
24,005 Redwood Trust, Inc. 370,640 438,091
14,000 Thornburg Mortgage Asset Corp. 212,340 220,500
---------- ------------
582,980 658,591
---------- ------------
TELECOMMUNICATIONS EQUIPMENT -- 4.0%
16,500 Digital Systems International, Inc.* 112,625 214,500
---------- ------------
TELECOMMUNICATIONS SERVICES -- 7.5%
6,000 Cellular Communications of Puerto Rico, Inc.* 156,750 166,500
14,000 Centennial Cellular Corp. CL A* 214,562 239,750
---------- ------------
371,312 406,250
---------- ------------
Total Common Stocks 4,136,221 5,259,744
---------- ------------
WARRANTS -- 1.4%
16,000 Redwood Trust, Inc.** 51,360 76,000
---------- ------------
<CAPTION>
FACE
AMOUNT
- - --------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 1.8%
$100,957 Norwest U.S. Government Money Market Fund, 5.2% 100,957 100,957
---------- ------------
Total Investments in Securities $4,288,538*** 5,436,701
---------- ------------
----------
Other Assets Less Liabilities -- (.5%) (28,786)
------------
Total Net Assets -- 100.0% $5,407,915
------------
------------
Net Asset Value Per Share $ 14.661
------------
------------
</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
<PAGE>
- - --------------------------------------------------------------------------------
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.
