<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
SEMI-ANNUAL
REPORT
SEPTEMBER 30, 1997
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 performance information for the fund as compared
to the S&P 500 over the periods indicated. The table also sets forth average
annual total return data for the fund for the one year period ended September
30, 1997, 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>
Sept. 30, 1997 (9 months) 31.2% 29.6% 1.6%
Dec. 31, 1996 35.4 22.9 12.5
Dec. 31, 1995 40.5 37.5 3.0
Dec. 31, 1994 -17.3 1.3 -18.6
Dec. 31, 1993 (9 months) 20.3 5.5 14.8
Since Inception (April 1, 1993)
Cumulative 148.2 134.2 14.0
Compound Annual
Average Return 22.4 20.8 1.6
</TABLE>
The portfolio's average annual total return for the one year ending September
30, 1997, and for the period since inception (April 1, 1993) was 47.1% and
22.4%, respectively. The returns assume redemption at the end of each period and
reinvestment of dividends.
1
<PAGE>
The graph below shows the growth in value of a $100,000 investment in Hickory
since inception (April 1, 1993) to September 30, 1997, 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 for the same period, also assuming dividend
reinvestment. Hickory's performance numbers are calculated after deducting all
fees and expenses.
COMPARISON OF CHANGE IN VALUE OF $100,000
INVESTMENT IN HICKORY PORTFOLIO AND S&P 500
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HICKORY PORTFOLIO S&P 500
<S> <C> <C>
3/31/93 $100,000 $100,000
4/30/93 $91,621 $97,583
5/31/93 $95,999 $100,184
6/30/93 $96,609 $100,476
7/31/93 $99,489 $100,071
8/31/93 $107,204 $103,859
9/30/93 $108,002 $103,062
10/31/93 $115,028 $105,192
11/30/93 $111,438 $104,193
12/31/93 $120,267 $105,452
1/31/94 $118,421 $109,034
2/28/94 $116,476 $106,076
3/31/94 $110,109 $101,457
4/30/94 $109,060 $102,759
5/31/94 $110,065 $104,440
6/30/94 $104,789 $101,881
7/31/94 $104,153 $105,224
8/31/94 $110,360 $109,530
9/30/94 $109,189 $106,855
10/31/94 $107,787 $109,247
11/30/94 $101,810 $105,272
12/31/94 $99,476 $106,830
1/31/95 $99,870 $109,599
2/28/95 $103,994 $113,865
3/31/95 $105,513 $117,219
4/30/95 $105,229 $120,668
5/31/95 $111,054 $125,480
6/30/95 $118,331 $128,392
7/31/95 $124,859 $132,647
8/31/95 $133,445 $132,978
9/30/95 $139,110 $138,586
10/31/95 $133,237 $138,091
11/30/95 $137,345 $144,146
12/31/95 $139,728 $146,922
1/31/96 $146,980 $151,917
2/29/96 $148,848 $153,328
3/31/96 $148,334 $154,805
4/30/96 $151,650 $157,084
5/31/96 $159,513 $161,128
6/30/96 $163,383 $161,741
7/31/96 $150,145 $154,599
8/31/96 $160,466 $157,864
9/30/96 $168,758 $166,741
10/31/96 $171,426 $171,337
11/30/96 $179,661 $184,276
12/31/96 $189,125 $180,625
1/31/97 $195,946 $191,903
2/28/97 $200,614 $193,409
3/31/97 $190,121 $185,477
4/30/97 $190,461 $196,540
5/31/97 $217,223 $208,497
6/30/97 $220,947 $217,832
7/31/97 $229,579 $235,160
8/31/97 $232,386 $221,995
9/30/97 $248,189 $234,152
</TABLE>
This information represents past performance of the Hickory 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. Investment expenses are not deducted from the S&P 500 Index. Additional
information is available from the Weitz Funds at the address listed on the front
cover.
TOTAL RETURNS ARE BASED UPON PAST RESULTS AND ARE NOT A PREDICTION OF FUTURE
PERFORMANCE.
2
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SEPTEMBER 30, 1997 - SEMI-ANNUAL REPORT
October 8, 1997
Dear Fellow Shareholder:
The good times continued in the quarter, as small cap stocks finally began
to outperform the S&P 500. I am happy to say that Hickory benefitted from that
trend. The table below summarizes the recent performance of Hickory and the S&P
500 (including reinvested dividends).
<TABLE>
<CAPTION>
HICKORY S&P 500
TOTAL TOTAL
PERIOD RETURN RETURN
---------------------------------------- -------- --------
<S> <C> <C>
Third Quarter 1997 12.3% 7.5%
First 9 Months 1997 31.2% 29.6%
Last 12 Months (10/1/96 to 9/30/97) 47.1% 40.4%
</TABLE>
According to Lipper, the average growth mutual fund had a total return of
33.5% over the last twelve months.
REVIEW AND OUTLOOK
WHEN COMPLACENCY REIGNS, WE ALL GET WET
It doesn't get any better than this. I mean that literally, and I don't
think this is particularly good news. Hickory's recent returns, measured over
virtually any investment time period, have been very, very good. So good, in
fact, that I think the chances that these results will be repeated in all future
periods are, quite simply, very poor. As I have pointed out many times,
historical average annual stock market returns are about 10 percent. I continue
to believe that my investment strategy is sound and can result in better than
average returns. However, I see no reason to believe that Hickory's future
returns will be two to four times the long term stock market averages, even
though Hickory's past returns might suggest otherwise.
Why am I sounding so pessimistic? It's not because I think we should sell
all our stocks and wait for the inevitable market crash. No, I continue to think
that for long term investors (and I presume that all Hickory shareholders fit
that description) the future looks bright. I like the companies we own and I
still believe their stocks are undervalued. Therefore, we remain almost fully
invested (96 percent in stock) and I have not sold any of my personal Hickory
holdings.
3
<PAGE>
The real purpose of these comments is to remind you that nothing goes
straight up forever, particularly the stock market. We will experience another
down year -- it is inevitable. I just don't know when. But I would feel better
if all my shareholders were braced to accept that a year worse than 1994 (down
17 percent) could happen at any time. (By the way, Hickory's average annual
return from the beginning of 1994 -- the worse entry point an investor could
have chosen -- until the end of this quarter is above 20 percent. I certainly
wouldn't read too much into this example, but it is a good reminder that one bad
year does not necessarily lead to bad results over a longer period of time.)
The little quote at the beginning of this section appears on a button I
picked up at the Contrary Opinion Forum last week. This is an event designed for
investors who are interested in hearing viewpoints that are outside of
mainstream thinking. I thought this particular button did a good job of
highlighting the risks that we face today. Another button, picked up several
years ago, does almost as well summarizing these thoughts.
AVOID THE TYRANNY OF INFLATED EXPECTATIONS
A CASE STUDY -- REDWOOD TRUST
Redwood Trust is a stock that we have owned since the original private
placement, now more than three years ago. Thus far, we have made a lot of money
in the stock, and it is currently our single largest position. However, over the
last quarter Redwood has been a serious drag on Hickory's returns. I think this
situation illustrates some important points about my investment philosophy and
style. It might also help you to understand how I can simultaneously keep
Hickory fully invested and sound worried about a short term decline.
Redwood Trust is one of a new breed of companies called mortgage REITs
(real estate investment trusts) that I believe are best thought of as an
improvement over savings and loans, a large industry that has existed for many
years. This is a theme that recurs frequently in the businesses Hickory owns. I
am attracted to situations where a fundamentally better business model has been
developed and is being used by a new class of competitors to steal market share
from the incumbents. I think the ideal time for this kind of investment is after
the new players have been around long enough that, with effort, I can get
comfortable that there really is an opportunity, but not so long that the
business has been totally discovered by Wall Street. I believe the mortgage
REITs are at that stage.
Within the mortgage REIT industry, there is tremendous variation, both in
business strategy and in the quality of management. I believe that Redwood
shines in both areas. Redwood management thinks hard about the risks of the
business and takes the steps necessary to mitigate those risks. They think about
the return potential of every asset they consider buying across a range of
scenarios and only purchase assets that meet minimum return thresholds. Most
importantly, their incentives are aligned with mine. They win by increasing
earnings per share and the stock price, not by making the company bigger. So I
have strong reasons to believe that Redwood's management is growing the company
for the right reasons.
4
<PAGE>
What I have told you thus far helps explain why I bought Redwood
originally, and is probably not all that controversial. The controversy that has
arisen more recently has to do with how Redwood grows and with the value of the
stock. Because Redwood is a REIT, it must pay out its earnings as dividends and
cannot retain them to support future growth. One obvious (but not the only)
source of growth occurs when Redwood sells more shares at prices above book
value. This results in an increase to book value per share and therefore also to
earnings per share. The higher the stock price relative to book value, the more
valuable it is to sell additional shares, and the faster the company can grow.
Over the past year investors began to recognize this dynamic, and pushed the
price of Redwood shares above $50. Some observers thought that this price was
unsustainably high.
My approach to valuing Redwood was totally different. I recognized that
there are several reasons why the company might not always be able to sell more
stock. While I believed that it was likely that Redwood could sell some
additional stock, I thought it was critical to think about what would happen if
all stock sales stopped. And I concluded that even at its peak, Redwood would
offer an acceptable long term return, even without the beneficial effects of
stock sales.
Let me summarize the situation earlier this year. Redwood was a company I
liked very much, the best in an attractive industry. I thought it would make a
very good holding over a long period of time. Under a pessimistic scenario, I
thought that the stock price was at the high end of a reasonable range. Under a
more moderate scenario, I felt that Redwood was still undervalued. It was the
kind of risk and reward with which I am comfortable. I decided to hold onto our
shares. If I had not considered Redwood to be a long term holding, or if I had
considered Redwood to be overvalued, I definitely would have sold.
Holding was clearly an unprofitable decision in the short run. Last month
Redwood announced that the company was currently having trouble finding assets
that met their return objectives. Growth, at least for now, would slow. I viewed
this news as confirmation of management's discipline. However, the reaction from
Wall Street was swift and predictably negative. Nevertheless, even in hindsight
I will stick by my analysis. I knew there was a chance that the company would
hit some bumps along the way, but I felt that the company's long term growth
prospects were sufficiently bright to compensate for these risks. I still do, so
you shouldn't be surprised to see that we now own more Redwood than we did three
months ago.
The kind of situation I faced with Redwood this spring is often seen
elsewhere in the stocks we hold in Hickory. I find this is particularly true
when the overall stock market feels high. Often I conclude that the current
price of a stock is higher than I would like to pay today, but that today's
price offers the prospect of attractive long term returns. In this situation I
won't buy more shares, but I also won't sell what I have just to raise cash. I
might sell if I have another opportunity that appears to be significantly more
attractive. I feel this combination minimizes trading costs and maximizes our
opportunities for long term appreciation. It does not, however, minimize the
potential for short term volatility. It is this kind of thinking that results in
Hickory being fully invested while I simultaneously warn you about the
possibility of negative results in the short term.
5
<PAGE>
I have once again managed to cover a lot of ground in this letter, but I
feel as if I have hardly touched the surface of some of these issues. If this
has raised any questions, please let me know. I would be glad to talk with you
further about these or other topics.
FAREWELL TO ERIC -- WELCOME TO MARY JEWELL
Eric Ball joined us last year to help clients with their investment
questions and financial planning. We and our clients enjoyed working with him.
But Eric's first love is portfolio management, and this summer he received the
offer he could not refuse. So, he has left us to help manage a private hedge
fund, and we wish him the very best.
In looking for a replacement for Eric, we asked lawyers, accountants,
bankers, and clients for the names of the investment professionals they admired,
trusted, and liked to work with. We talked to several people, none of whom were
looking for a new job, and have hired Mary Jewell. Mary is a graduate of
Creighton Law School, and comes to us after 12 years in the trust department of
a major bank. She is available to talk to retirement plan participants or
individual shareholders about personal financial planning, asset allocation, or
any other questions you may have. Her job is to make your financial life easier,
so please feel free to call her and introduce yourself. I think you will enjoy
working with her.
Sincerely,
/s/ Richard Lawson
Richard F. Lawson
Portfolio Manager
6
<PAGE>
SHAREHOLDER VOTE
On June 2, 1997, a special meeting of the shareholders of Weitz Series
Fund, Inc. (The "Fund"), consisting of the Value Portfolio, the Fixed Income
Portfolio, the Government Money Market Portfolio and the Hickory Portfolio
(each, a "Portfolio") was held at which the following proposals were approved by
the shareholders:
PROPOSAL 1: TO ELECT SIX MEMBERS OF THE BOARD OF DIRECTORS OF THE FUND.
(SHAREHOLDERS OF ALL PORTFOLIOS VOTING)
<TABLE>
<CAPTION>
ABSTAIN/BROKER
FOR AGAINST/WITHHELD NON-VOTES
------------- --------------- -------------
<S> <C> <C> <C>
Wallace R. Weitz........................ 15,502,256 109,974 0
John W. Hancock......................... 15,491,314 120,916 0
Richard D. Holland...................... 15,501,594 110,636 0
Thomas R. Pansing Jr.................... 15,499,945 112,285 0
Delmer L. Toebben....................... 15,490,181 122,049 0
Lorraine Chang.......................... 15,494,823 117,407 0
</TABLE>
PROPOSAL 2: TO RATIFY THE SELECTION OF MCGLADREY & PULLEN, LLP, AS
INDEPENDENT AUDITORS FOR THE FUND. (SHAREHOLDERS OF ALL PORTFOLIOS VOTING)
<TABLE>
<CAPTION>
ABSTAIN/BROKER
FOR AGAINST/WITHHELD NON-VOTES
------------- --------------- -------------
<S> <C> <C> <C>
15,253,977 35,308 322,945
</TABLE>
PROPOSAL 3: TO AMEND THE BYLAWS OF THE FUND TO CONFORM THE REQUIREMENTS
THEREIN RELATING TO ELECTION OF THE BOARD OF DIRECTORS BY THE SHAREHOLDERS
TO THE REQUIREMENTS OF THE INVESTMENT COMPANY ACT OF 1940. (SHAREHOLDERS OF
ALL PORTFOLIOS VOTING)
<TABLE>
<CAPTION>
ABSTAIN/BROKER
FOR AGAINST/WITHHELD NON-VOTES
------------- --------------- -------------
<S> <C> <C> <C>
15,212,675 17,225 382,330
</TABLE>
PROPOSAL 4: TO AMEND THE FUNDAMENTAL INVESTMENT RESTRICTIONS OF THE HICKORY
PORTFOLIO TO ELIMINATE THE RESTRICTION WHICH PROHIBITS THE PORTFOLIO'S USE
OF CERTAIN INVESTMENT TECHNIQUES SUCH AS SHORT SALES AND PUT AND CALL
OPTIONS. (SHAREHOLDERS OF HICKORY PORTFOLIO VOTING)
<TABLE>
<CAPTION>
ABSTAIN/BROKER
FOR AGAINST/WITHHELD NON-VOTES
------------- --------------- -------------
<S> <C> <C> <C>
402,432 20,998 490
</TABLE>
PROPOSAL 5: TO AMEND THE FUNDAMENTAL INVESTMENT RESTRICTIONS OF THE HICKORY
PORTFOLIO TO ELIMINATE THE RESTRICTION RELATING TO INVESTING IN THE
SECURITIES OF OTHER INVESTMENT COMPANIES. (SHAREHOLDERS OF HICKORY
PORTFOLIO VOTING)
<TABLE>
<CAPTION>
ABSTAIN/BROKER
FOR AGAINST/WITHHELD NON-VOTES
------------- --------------- -------------
<S> <C> <C> <C>
390,903 32,527 490
</TABLE>
7
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ------------- ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 96.0%
BANKING -- 1.5%
1,000 Wells Fargo & Co. $ 88,506 $ 275,000
------------- -------------
CABLE TELEVISION -- 18.0%
37,000 Adelphia Communications Corp. CL A* 251,750 448,625
130,000 Century Communications Corp. CL A* 651,569 991,250
13,000 Comcast Corporation CL A 201,025 333,125
21,500 Comcast Corporation Special CL A 330,316 553,625
25,448 Tele-Communications, Inc. CL A* 338,643 521,684
20,000 U.S. West Media Group* 366,200 446,250
------------- -------------
2,139,503 3,294,559
------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 3.5%
37,000 American Classic Voyages Co.* 288,125 647,500
------------- -------------
DIVERSIFIED INDUSTRIES -- 0.8%
1,500 Lynch Corp.* 112,560 145,500
------------- -------------
FINANCIAL SERVICES -- 9.1%
22,000 Capital One Financial Corp. 613,781 1,005,125
25,000 Imperial Credit Industries, Inc.* 332,075 662,500
------------- -------------
945,856 1,667,625
------------- -------------
HEALTH CARE -- 2.3%
17,000 Seafield Capital Corp. 458,210 425,000
------------- -------------
MEDIA AND ENTERTAINMENT -- 15.2%
30,000 TCI Satellite Entertainment CL A* 226,427 226,875
22,500 Tele-Communications Liberty Media CL A* 383,444 673,594
14,552 Tele-Communications TCI-Ventures Grp A* 193,646 300,135
50,000 Valassis Communications, Inc.* 742,213 1,593,750
------------- -------------
1,545,730 2,794,354
------------- -------------
MORTGAGE BANKING -- 6.0%
17,000 Countrywide Credit Industries, Inc. 259,020 619,438
5,000 New Century Financial Corp.* 55,000 85,312
30,305 Resource Bancshares Mtg. Grp., Inc. 320,743 395,859
------------- -------------
634,763 1,100,609
------------- -------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ------------- ------------- -------------
<C> <S> <C> <C>
REAL ESTATE AND CONSTRUCTION -- 5.2%
9,000 Forest City Enterprises, Inc. CL A $ 197,678 $ 517,500
8,250 SLH Corp.* 52,662 435,187
------------- -------------
250,340 952,687
------------- -------------
REAL ESTATE INVESTMENT TRUSTS -- 14.2%
25,000 Hanover Capital Mortgage Holdings, Inc.*** 375,000 428,125
20,000 NovaStar Financial, Inc.** 300,000 300,000
61,951 Redwood Trust, Inc. 1,297,440 1,881,762
------------- -------------
1,972,440 2,609,887
------------- -------------
TELECOMMUNICATIONS SERVICES -- 20.2%
40,000 360 Communication Co.* 813,580 835,000
10,000 Airtouch Communications, Inc.* 238,100 354,375
100,000 Centennial Cellular Corp. CL A* 1,214,569 1,712,500
49,000 Corecomm, Inc.* 876,631 808,500
------------- -------------
3,142,880 3,710,375
------------- -------------
Total Common Stocks 11,578,913 17,623,096
------------- -------------
<CAPTION>
FACE
AMOUNT
- -------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 3.2%
$ 587,160 Norwest U.S. Government Money Market Fund 587,160 587,160
------------- -------------
Total Investments in Securities $ 12,166,073 18,210,256
------------- -------------
-------------
Other Assets Less Liabilities -- 0.8% 154,941
-------------
Total Net Assets -- 100% $ 18,365,197
-------------
-------------
Net Asset Value Per Share $ 23.259
-------------
-------------
</TABLE>
*Non-income Producing
**This restricted security, exempt from registration under the Securities Act of
1933, was purchased in a private placement and, unless registered under the Act
or exempted from registration, may only be sold to qualified institutional
investors or certain accredited investors.
***One unit consists of one share of common stock and one stock purchase
warrant.
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $12,166,073) $ 18,210,256
Accrued interest and dividends receivable 40,876
Receivable for securities sold 130,477
Prepaid expenses 1,730
-------------
Total assets 18,383,339
-------------
Liabilities:
Due to adviser 18,142
-------------
Total liabilities 18,142
-------------
Net assets applicable to outstanding capital stock $ 18,365,197
-------------
-------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 790
Additional paid-in capital 11,801,467
Accumulated undistributed net investment loss (15,496)
Accumulated undistributed net realized gains 534,253
Net unrealized appreciation of investments (note 5) 6,044,183
-------------
Net assets $ 18,365,197
-------------
-------------
Net asset value and redemption price per share of
outstanding
capital stock (789,581 shares outstanding) $ 23.259
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Dividends $ 76,152
Interest 25,016
-------------
Total investment income 101,168
-------------
Expenses (note 3):
Investment advisory fee 77,843
Administrative fee 19,461
Audit fees 10,363
Directors fees 356
Other expenses 8,641
-------------
Total expenses 116,664
-------------
Net investment loss (15,496)
-------------
Realized and unrealized gain on investments:
Realized gain on investments 534,253
Net unrealized appreciation of investments 3,653,185
-------------
Net realized and unrealized gain on investments 4,187,438
-------------
Net increase in net assets resulting from operations $ 4,171,942
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
SEPT. 30, YEAR ENDED
1997 MARCH 31,
(UNAUDITED) 1997
------------- -------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income (loss) $ (15,496) $ 29,576
Net realized gain 534,253 754,913
Net unrealized appreciation 3,653,185 1,254,201
------------- -------------
Net increase in net assets resulting from
operations 4,171,942 2,038,690
------------- -------------
Distributions to shareholders from:
Net investment income (29,576) (1,255)
Net realized gain (677,498) (528,237)
------------- -------------
Total distributions (707,074) (529,492)
------------- -------------
Capital share transactions (note 4):
Proceeds from sales 2,397,439 4,480,732
Payments for redemptions (404,623) (872,598)
Reinvestment of distributions 686,177 445,790
------------- -------------
Total increase from capital share transactions 2,678,993 4,053,924
------------- -------------
Total increase in net assets 6,143,861 5,563,122
------------- -------------
Net assets:
Beginning of period 12,221,336 6,658,214
------------- -------------
End of period $ 18,365,197 $ 12,221,336
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
FINANCIAL HIGHLIGHTS
The following information provides selected data for a share of the Hickory
Portfolio outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPT. 30, 1997 -----------------------------------------
(UNAUDITED) 1997 1996+++ 1995 1994
-------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.899 $ 15.564 $ 11.257 $ 12.227 $ 11.147
------- -------- -------- -------- --------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (0.023) 0.045 0.004 (0.008) (0.290)
Net gains or losses on securities
(realized and unrealized) 5.411 4.329 4.504 (0.508) 1.420
------- -------- -------- -------- --------
Total from investment operations 5.388 4.374 4.508 (0.516) 1.130
------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.043) (0.002) (0.136) -- 0.083
Distributions from realized gains (0.985) (1.037) (0.065) (0.454) (0.133)
------- -------- -------- -------- --------
Total distributions (1.028) (1.039) (0.201) (0.454) (0.050)
------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 23.259 $ 18.899 $ 15.564 $ 11.257 $ 12.227
------- -------- -------- -------- --------
------- -------- -------- -------- --------
TOTAL RETURN 30.5%* 28.2% 40.6% (4.2%) 10.1%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $ 18,365 $ 12,221 $ 6,658 $ 3,619 $ 2,499
Ratio of net expenses to average net
assets+ 1.50%** 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income (loss) to
average net assets (0.20%)** 0.33% 0.02% (0.17%) (2.92%)
Portfolio turnover rate 11% 28% 28% 20% 29%
Average commission rate paid (per
share)++ $ 0.0498 $ 0.0498
</TABLE>
+ Absent voluntary waivers, the expense ratio would have been 1.56% for the
year ended March 31, 1997, and 1.61% for the year ended March 31, 1996.
++ Required by regulations issued in 1995.
+++ Calculated using average daily shares.
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
13
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(UNAUDITED)
(1) ORGANIZATION
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, 1997, the Fund had four
series: the Hickory Portfolio, the Value Portfolio, the Fixed Income
Portfolio, and the Government Money Market Portfolio. The accompanying
financial statements present the financial position and results of
operations of the Hickory 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 significant 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.
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 related to such option is
14
<PAGE>
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. No call
options were written in the six months ended September 30, 1997.
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 securities are
purchased or sold (trade date). Income dividends and distributions to
shareholders are recorded on the ex-dividend date. Interest, including
amortization of discount and premium, is accrued as earned.
Realized gains or losses are determined by specifically identifying the
security 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 assets and 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.
15
<PAGE>
Under the terms of a management and investment advisory agreement, the
Adviser receives a management 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 daily net asset value.
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, 1997, the fee was calculated at an average annual rate of .25% of the
Portfolio's average daily net assets.
Weitz Securities, Inc., as distributor, received no compensation for the
distribution of Portfolio shares.
(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 per share. Ten million of these
shares have been authorized by the Board of Directors to be issued in the
series designated Hickory Portfolio, of which 789,581 shares are outstanding
at September 30, 1997. 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
series to which the stock of that series relates and will have no interest
in the assets of any other series.
Transactions in the capital stock of the Portfolio are summarized as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
------------------ --------------
<S> <C> <C>
Transactions in shares:
Shares issued..................................................... 122,035 245,327
Shares redeemed................................................... (19,648) (50,285)
Distributions reinvested.......................................... 40,523 23,823
------- -------
Net increase.................................................... 142,910 218,865
------- -------
------- -------
</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $3,154,597 and
$1,624,598, respectively. The cost of investments is the same for financial
reporting and Federal income tax purposes. At September 30, 1997, the
aggregate gross unrealized appreciation and depreciation were $6,364,557 and
$320,374, respectively.
16
<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
Lorraine Chang
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. -- Hickory Portfolio. For more detailed information about the
Fund, its investment objectives, management, fees and expenses, please see a
current prospectus. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a current prospectus.
<PAGE>
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