<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
VALUE 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. -- 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, 1997, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL ANNUAL
$25,000 CAPITAL GAIN REINVESTED VALUE OF RATE OF
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES 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
Dec. 31, 1996 51,478 24,054 13,792 89,324 18.7
Sept. 30, 1997 62,193 35,942 17,163 115,298 29.1++
</TABLE>
The portfolio's average annual total return for the one, five and ten year
periods ending September 30, 1997, was 37.2%, 20.0%, and 15.3%, 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 $23,907, and the total amount of income distributions reinvested was
$8,913. 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 the Weitz Funds at the address listed on the front cover.
+ Return is for the seven month period 5/9/86 through 12/31/86
++Return is for the nine month period 1/1/97 through 9/30/97
1
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SEPTEMBER 30, 1997 - SEMI-ANNUAL REPORT
October 5, 1997
Dear Fellow Shareholder:
The 3rd quarter was another good one for the Value Portfolio. Our total
return (income plus appreciation, after deducting expenses) was +11.0%. This
brings our gain for the first 9 months of 1997 to +29.1%. This compares to S&P
500 index returns of +7.5% for the quarter and +29.6% for the first 9 months of
1997.
More significantly, the fund has grown at an average annual rate of 20.0%
over the past 5 years, and by 15.3% per year over the past 10 years. The Value
Portfolio's 10-year return ranks 8th of 129 Growth and Income funds, based on
total return data compiled by Lipper Analytical Services, Inc. for the 10-year
period from 9/30/87 to 9/30/97*. The table on page 1 shows that an initial
investment of $25,000 when the fund was started in 1986 would have grown to
$115,298 by September 30, 1997. (Past performance is no guarantee of future
success.)
PORTFOLIO REVIEW
Our portfolio does not change much from quarter to quarter, so the reasons
for the good 3rd quarter results will sound familiar:
(1) Cable television and cellular telephone companies account for over a third
of our portfolio and both have been enjoying a period of rediscovery by Wall
Street this year. The companies' business characteristics, asset values, and
growth prospects have been good for years, but investor perceptions have
improved dramatically this year and several of the stocks are up 50-75% from
their lows.
(2) Banks and other financial service stocks have been strong for several years
and they continued to contribute to our performance. In fact, several of these
companies have become very popular, and I have sold the ones that seemed most
expensive.
*According to Lipper Analytical Services, the Value Portfolio was ranked 76 of
225 and 227 of 576 among Growth and Income funds for the five-year period and
one-year period ended September 30, 1997, respectively.
2
<PAGE>
(3) Two more of our companies, Protection One and Katz Media, received takeover
bids at premium prices. Losing a promising investment to an acquirer is a mixed
blessing, but it usually offers the consolation of a short-term windfall.
(4) Two of our companies are using corporate restructurings to draw attention to
undervalued assets. Telecommunications, Inc. has divided its businesses among
five separately traded public entities, and the result has been a significantly
higher aggregate stock value. Seafield Capital is a holding company which we
bought at an average price of about $35 per share because it proposed to
distribute securities with a value of about $50. We are in the final stages of
the restructuring, and it appears that the value of the distributions will be
closer to $75 per original Seafield share.
THE OUTLOOK FOR OUR PORTFOLIO -- PRICE VS. VALUE
Value investing is about buying stocks for less than they are worth and
selling them for full value, or with luck, for more than they are worth. Stock
prices in general have risen sharply in recent years, and bargains are fewer and
farther between. Certain categories of stocks seem to be particularly expensive,
and there is a pervasive optimistic complacency among "investors" that makes me,
and many clients, uneasy. In the context of this relatively expensive market, it
is reasonable to ask, "Should I get out of the market altogether?" and "What is
realistic to hope for from this portfolio?"
Selling stocks when they are "high" and buying them back in when they are
"low" is a great idea, except that, in my opinion, it cannot be done
consistently and profitably. Getting the timing right is very difficult. There
were very logical reasons to sell when the Dow reached 5000 -- or 6000 -- or
7000. Yet here we are at Dow 8000. Stock prices respond to cash flows into and
out of the stock market that are absolutely unpredictable. Even if we could get
the timing right, transaction costs, limited liquidity of many stocks, and (for
some) tax considerations make market timing impractical.
So, in spite of the fact that investment conditions are less than ideal,
the reasons I feel very comfortable having over 80% of my liquid net worth
invested in my firm's stock funds are:
(1) Stocks are not all alike, and while some are over-valued, others are
under-valued. I believe that if we could own 100% of each of our companies at
today's stock prices, we would have terrific investments over the next 5, 10, or
15 years;
(2) Some of our stocks have "defensive" characteristics, such as very high
dividends, which may insulate them from general market trauma. For example,
Redwood Trust is a mortgage real estate investment trust which owns a portfolio
of high quality mortgages and passes through
3
<PAGE>
its earnings in the form of a dividend. Redwood sells at about $30, should pay a
dividend of $2.70-3.00 in 1998 (9-10% yield), and the dividend is likely to grow
at 10-20% per year. These stocks have the potential to earn very solid returns
regardless of what the Dow or S&P do;
(3) Although our portfolio is allowed to be fully invested in stocks, we
currently own U.S. Treasury securities and other bonds and preferred stocks
equal to 12% of our fund's assets. Also, about 5% of our fund is invested in
stocks (NHP and CommNet) which are in the final stages of being acquired.
Assuming the transactions close, these holdings represent "cash equivalents."
These "reserves" have not helped our performance in this period of double-digit
returns, but they provide a hedge against a severe correction and they represent
buying power for future opportunities.
Stock investing is more art than science, and the timing of returns is
unpredictable. It has been a long time since the general market declined by a
significant amount, and a 20-30% "correction" would be perfectly normal.
However, I feel very good about our companies, and I am optimistic about the
long-term performance of our portfolio.
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.
Best regards,
/s/ Wallace R. Weitz
--------------------
Wallace R. Weitz
President, Portfolio
Manager
4
<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>
FOR AGAINST/WITHHELD ABSTAIN/BROKER 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>
FOR AGAINST/WITHHELD ABSTAIN/BROKER 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>
FOR AGAINST/WITHHELD ABSTAIN/BROKER NON-VOTES
------------- ----------------- ------------------------
<S> <C> <C> <C>
15,212,675 17,225 382,330
</TABLE>
PROPOSAL 4: TO AMEND THE FUNDAMENTAL INVESTMENT RESTRICTIONS OF THE VALUE
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 VALUE PORTFOLIO VOTING)
<TABLE>
<CAPTION>
FOR AGAINST/WITHHELD ABSTAIN/BROKER NON-VOTES
----------- ---------------- ------------------------
<S> <C> <C> <C>
6,950,258 360,699 225,645
</TABLE>
PROPOSAL 5: TO AMEND THE FUNDAMENTAL INVESTMENT RESTRICTIONS OF THE VALUE
PORTFOLIO TO ELIMINATE THE RESTRICTION RELATING TO INVESTING IN THE
SECURITIES OF OTHER INVESTMENT COMPANIES. (SHAREHOLDERS OF VALUE PORTFOLIO
VOTING)
<TABLE>
<CAPTION>
FOR AGAINST/WITHHELD ABSTAIN/BROKER NON-VOTES
----------- ---------------- ------------------------
<S> <C> <C> <C>
7,127,897 145,719 262,986
</TABLE>
5
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
---------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 88.0%
BANKING -- 3.2%
40,000 Wells Fargo & Co. $ 6,278,603 $ 11,000,000
------------ ------------
CABLE TELEVISION -- 17.3%
271,500 Adelphia Communications Corp. CL A* 2,161,718 3,291,938
1,322,000 Century Communications Corp. CL A* 7,773,794 10,080,250
52,000 Comcast UK Cable Partners Limited CL A 653,976 533,000
730,000 Comcast Corp. Special CL A 11,502,098 18,797,500
538,862 Tele-Communications, Inc. CL A* 7,754,511 11,046,671
694,000 U.S. West Media Group* 12,642,948 15,484,875
------------ ------------
42,489,045 59,234,234
------------ ------------
CONSUMER PRODUCTS AND SERVICES -- 4.0%
135,000 American Classic Voyages Co.* 1,296,363 2,362,500
4,875 Lady Baltimore Foods, Inc. 227,781 242,531
300,000 Protection One, Inc.* 2,562,611 5,493,750
220,000 Seafield Capital Corp. 6,380,185 5,500,000
------------ ------------
10,466,940 13,598,781
------------ ------------
FEDERAL AGENCIES -- 4.9%
120,000 Federal Home Loan Mortgage Corp. 679,347 4,230,000
100,000 Federal National Mortgage Association 1,768,575 4,700,000
50,000 Student Loan Marketing Association 1,837,925 7,725,000
------------ ------------
4,285,847 16,655,000
------------ ------------
FINANCIAL SERVICES -- 5.6%
22,000 American Capital Strategies, LTD.* 330,000 440,000
80,000 American Express Co. 2,381,346 6,550,000
110 Berkshire Hathaway, Inc.* 640,550 4,928,000
128,000 Capital One Financial Corp. 3,107,958 5,848,000
40,000 Imperial Credit Industries, Inc.* 550,000 1,060,000
30,000 PS Group, Inc.* 188,125 406,875
------------ ------------
7,197,979 19,232,875
------------ ------------
INFORMATION AND DATA PROCESSING -- 1.9%
142,100 BRC Holdings, Inc.* 3,457,554 5,435,325
210,000 Intelligent Systems Corp.* 447,971 1,233,750
------------ ------------
3,905,525 6,669,075
------------ ------------
</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>
MEDIA AND ENTERTAINMENT -- 14.1%
13,590 Chris-Craft Industries, Inc.* $ 553,493 $ 716,023
57,200 Daily Journal Corp.* 1,254,216 2,616,900
300,000 Gabelli Global Multimedia Trust, Inc. 2,071,150 2,568,750
135,000 TCI Satellite Entertainment CL A* 1,509,907 1,020,938
680,000 Tele-Communications Liberty Media CL A* 11,369,036 20,357,500
308,138 Tele-Communications TCI Ventures Group A 4,434,259 6,355,346
50,000 Time Warner, Inc. 1,267,265 2,709,375
321,000 Valassis Communications, Inc.* 5,004,200 10,231,875
20,000 Walt Disney Co. 1,098,642 1,613,750
------------ ------------
28,562,168 48,190,457
------------ ------------
MORTGAGE BANKING -- 5.2%
300,000 Countrywide Credit Industries, Inc. 4,656,092 10,931,250
75,000 Long Beach Financial Corp.* 487,500 1,017,187
25,000 New Century Financial Corp.* 275,000 426,563
428,058 Resource Bancshares Mtg. Grp., Inc. 5,008,501 5,591,508
------------ ------------
10,427,093 17,966,508
------------ ------------
REAL ESTATE AND CONSTRUCTION -- 7.8%
115,000 Catellus Development Corp.* 671,575 2,386,250
90,000 Forest City Enterprises, Inc. CL A 2,159,453 5,175,000
540,000 NHP, Inc.*+ 8,494,395 15,255,000
300,500 Presley Companies CL A* 418,231 262,937
68,100 SLH Corp.* 434,705 3,592,275
------------ ------------
12,178,359 26,671,462
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 9.8%
98,800 First Washington Realty Trust, Inc. 1,503,405 2,432,950
150,000 Hanover Capital Mortgage Holdings, Inc.*** 2,250,000 2,568,750
185,000 NovaStar Financial, Inc.** 2,775,000 2,775,000
727,627 Redwood Trust, Inc. 17,572,751 22,101,670
175,000 Thornburg Mortgage Asset Corp. 3,174,637 3,675,000
------------ ------------
27,275,793 33,553,370
------------ ------------
TELECOMMUNICATIONS -- 14.2%
640,000 360 Communications Co.* 12,910,370 13,360,000
210,000 Airtouch Communications, Inc.* 6,033,127 7,441,875
485,000 Corecomm, Inc.* 10,746,433 8,002,500
785,000 Centennial Cellular Corp. CL A* 11,573,473 13,443,125
82,800 CommNet Cellular, Inc.* 2,204,647 2,903,175
80,000 Telephone and Data Systems, Inc. 2,966,739 3,595,000
------------ ------------
46,434,789 48,745,675
------------ ------------
Total Common Stocks 199,502,141 301,517,437
------------ ------------
</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 -- 1.4%
10,000 Community Bank 13% Pfd. Series B $ 257,550 $ 275,000
15,000 Crown American Realty Trust 11% Pfd. Series A 750,000 802,500
30,000 Prime Retail, Inc. 10.5% Pfd. Series A 645,000 802,500
69,941 Riggs National Corp. 10.75% Pfd. Series B 1,852,839 2,002,061
34,000 River Bank America 15.0% Pfd. Series A 845,750 782,000
------------ ------------
Total Non-Convertible Preferred Stocks 4,351,139 4,664,061
------------ ------------
<CAPTION>
FACE
AMOUNT
----------
<C> <S> <C> <C>
CORPORATE BONDS -- 0.7%
$ 500,000 Salomon, Inc. Notes 7.125% 8/01/99 500,000 507,902
750,000 Local Financial Corp. 11.0% 9/08/04 750,000 787,500
1,000,000 Dime Savings 10.5% 11/15/05 1,047,759 1,077,500
------------ ------------
Total Corporate Bonds 2,297,759 2,372,902
------------ ------------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 6.2%
750,000 U.S. Treasury Note 6.0% 5/31/98 749,010 751,875
4,750,000 Federal Natl. Mtg. Assn. 6.625% 7/12/00 4,750,635 4,825,703
2,000,000 Federal Home Loan Bank 7.0% 5/28/02 2,011,808 2,013,438
2,000,000 Federal Home Loan Bank 6.55% 11/15/02 2,000,000 1,997,290
6,000,000 Federal Home Loan Bank 0.0% 1/21/03 4,166,350 4,177,148
3,000,000 Federal Natl. Mtg. Assn. 7.54% 6/04/04 3,013,565 3,020,625
2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,498,685 2,544,141
1,000,000 Federal Home Loan Bank 6.44% 11/28/05 1,001,285 1,009,219
1,000,000 Federal Natl. Mtg. Assn. 7.44% 11/06/06 1,003,675 1,000,156
------------ ------------
Total U.S. Government and Agency Securities 21,195,013 21,339,595
------------ ------------
SHORT-TERM SECURITIES -- 4.4%
10,442,919 Norwest U.S. Government Money Market Fund 10,442,919 10,442,919
2,750,000 Federal Home Loan Bank Discount Note 10/15/97 2,744,246 2,743,641
1,950,000 U.S. Treasury Bill 1/08/98 1,922,685 1,922,862
------------ ------------
Total Short-Term Securities 15,109,850 15,109,422
------------ ------------
Total Investments in Securities $242,455,902 345,003,417
------------ ------------
------------
Securities Sold Short -- (3.5%) (12,189,125)
Other Assets Less Liabilities -- 2.8% 9,626,534
------------
Total Net Assets -- 100% $342,440,826
------------
------------
Net Asset Value Per Share $ 24.877
------------
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS PROCEEDS VALUE
---------- ------------ ------------
<C> <S> <C> <C>
SECURITIES SOLD SHORT
338,000 Apartment Investment & Management Co.+ $ 10,673,938 $ 12,189,125
------------ ------------
------------ ------------
</TABLE>
+A company named Aimco is scheduled to acquire NHP, Inc. ("NHP") in the 4(th)
quarter of 1997. As part of the acquisition, NHP shareholders are expected to
receive approximately .75 share of Apartment Investment & Management Co. ("AIV")
for each share of NHP. AIV has been sold short in anticipation of receipt of AIV
shares in exchange for NHP shares currently owned by the Value Portfolio.
*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. -- VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $242,455,902) $345,003,417
Receivable for securities sold 886,896
Accrued interest and dividends receivable 938,604
Deposits with brokers for securities sold short 10,501,907
Prepaid expenses 24,107
------------
Total assets 357,354,931
------------
Liabilities:
Due to adviser 324,172
Payable for securities purchased 2,398,500
Securities sold short, at value (proceeds received $10,673,938) 12,189,125
Other expenses 2,308
------------
Total liabilities 14,914,105
------------
Net assets applicable to outstanding capital stock $342,440,826
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 13,765
Additional paid-in capital 226,797,863
Accumulated undistributed net investment income 762,785
Accumulated undistributed net realized gains 13,834,085
Net unrealized appreciation (note 5) 101,032,328
------------
Net assets $342,440,826
------------
------------
Net asset value and redemption price per share of outstanding capital stock
(13,765,107 shares outstanding) $ 24.877
------------
------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Dividends $ 1,662,998
Interest 1,148,731
-----------
Total investment income 2,811,729
-----------
Expenses (note 3):
Investment advisory fee 1,540,614
Administrative fee 284,485
Directors fees 7,327
Dividends on securities sold short 83,712
Other expenses 132,839
-----------
Total expenses 2,048,977
-----------
Net investment income 762,752
-----------
Realized and unrealized gain on investments:
Realized gain on investments 13,834,121
Net unrealized appreciation of investments 57,817,413
-----------
Net realized and unrealized gain on investments 71,651,534
-----------
Net increase in net assets resulting from operations $72,414,286
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT. 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
----------------- --------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 762,752 $ 2,339,666
Net realized gain 13,834,121 22,078,674
Net unrealized appreciation 57,817,413 8,381,030
----------------- --------------
Net increase in net assets resulting from operations 72,414,286 32,799,370
----------------- --------------
Distributions to shareholders from:
Net investment income (1,152,530) (1,494,741)
Net realized gain (15,861,434) (13,158,732)
----------------- --------------
Total distributions (17,013,964) (14,653,473)
----------------- --------------
Capital share transactions (note 4):
Proceeds from sales 22,155,589 102,398,781
Payments for redemptions (27,384,862) (29,748,582)
Reinvestment of distributions 16,672,402 14,292,423
----------------- --------------
Total increase from capital share transactions 11,443,129 86,942,622
----------------- --------------
Total increase in net assets 66,843,451 105,088,519
----------------- --------------
Net assets:
Beginning of period 275,597,375 170,508,856
----------------- --------------
End of period $ 342,440,826 $275,597,375
----------------- --------------
----------------- --------------
</TABLE>
See accompanying notes to financial statements.
12
<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, 1997 ----------------------------------
(UNAUDITED) 1997 1996 1995 1994
------------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 20.988 $19.457 $15.552 $15.684 $15.526
-------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.056 0.178 0.157 0.144 0.089
Net gains or losses on securities
(realized and unrealized) 5.144 2.580 5.247 0.452 0.683
-------- ------- ------- ------- -------
Total from investment operations 5.200 2.758 5.404 0.596 0.772
-------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.089) (0.125) (0.418) -- (0.023)
Distributions from realized gains (1.222) (1.102) (1.081) (0.728) (0.591)
-------- ------- ------- ------- -------
Total distributions (1.311) (1.227) (1.499) (0.728) (0.614)
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 24.877 $20.988 $19.457 $15.552 $15.684
-------- ------- ------- ------- -------
-------- ------- ------- ------- -------
TOTAL RETURN 26.6%++ 14.3% 35.9% 4.1% 4.9%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $ 342,441 $275,597 $170,509 $118,776 $103,840
Ratio of expenses to average net assets 1.27%* 1.29% 1.35% 1.42% 1.41%
Ratio of net investment income to average net assets 0.49%* 0.93% 0.91% 1.06% 0.64%
Portfolio turnover rate 16% 39% 40% 28% 23%
Average commission rate paid (per share)+ $ 0.0519 $0.0476
<CAPTION>
1993 1992 1991 1990 1989
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $13.926 $12.842 $11.854 $11.772 $10.517
------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.221 0.360 0.319 0.421 0.335
Net gains or losses on securities
(realized and unrealized) 2.199 1.445 1.117 0.720 1.238
------- ------- ------- ------- -------
Total from investment operations 2.420 1.805 1.436 1.141 1.573
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.275) (0.324) (0.380) (0.430) (0.318)
Distributions from realized gains (0.545) (0.397) (0.068) (0.629) --
------- ------- ------- ------- -------
Total distributions (0.820) (0.721) (0.448) (1.059) (0.318)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $15.526 $13.926 $12.842 $11.854 $11.772
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN 18.3% 14.3% 12.6% 9.6% 15.2%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $67,617 $35,948 $27,503 $24,540 $16,394
Ratio of expenses to average net assets 1.35% 1.40% 1.49% 1.46% 1.50%
Ratio of net investment income to average net assets 1.66% 2.75% 2.71% 3.71% 3.30%
Portfolio turnover rate 23% 35% 29% 49% 25%
Average commission rate paid (per share)+
</TABLE>
+ Required by regulations issued in 1995.
++ Not annualized
* Annualized
See accompanying notes to financial statements.
13
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE 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 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.
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
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.
14
<PAGE>
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). Income dividends and distributions to
shareholders are recorded on the ex-dividend date. Interest, including
amortization of discount or 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.
(F)SECURITIES SOLD SHORT
The Portfolio is engaged in selling securities short, which obligates the
Portfolio to replace a security borrowed by purchasing the same security
at the current market value. The Portfolio would incur a loss if the
price of the security increases between the date of the short sale and
the date on which the Portfolio replaces the borrowed security. The
Portfolio would realize a gain if the price of the security declines
between those dates.
15
<PAGE>
The Portfolio is required to establish a margin account with the broker
lending the security sold short. While the short sale is outstanding, the
broker retains the proceeds of the short sale. The Portfolio will place
in a segregated account a sufficient amount of cash and securities as
required by applicable federal securities regulations in order to cover
the transaction.
(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.
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, 1997.
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 .18% of the
Portfolio's average daily net assets.
Weitz Securities, Inc. as distributor, received no compensation for
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. Thirty million of these shares
have been authorized by the Board of Directors to be issued in the series
designated Value Portfolio, of which 13,765,107 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..................................................... 998,360 5,119,390
Shares redeemed................................................... (1,234,128) (1,445,654)
Reinvested dividends.............................................. 869,804 694,076
---------- --------------
Net increase.................................................... 634,036 4,376,812
---------- --------------
---------- --------------
</TABLE>
16
<PAGE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $49,326,080 and
$46,900,570, 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 $109,387,075
and $8,354,747, respectively.
Transactions relating to covered call options during the six months ended
September 30, 1997, are summarized as follows:
<TABLE>
<CAPTION>
NUMBER OF
OPTIONS PREMIUM
----------- -----------
<S> <C> <C>
Options written, beginning of period............................................. -- --
Options written, during the period............................................... 10,000 48,448
Options exercised during the period.............................................. (10,000) (48,448)
----------- -----------
Options outstanding, end of period............................................... -- --
----------- -----------
----------- -----------
</TABLE>
17
<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. -- Value 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.
