<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.
VALUE PORTFOLIO
A N N U A L
R E P O R T
MARCH 31, 1998
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 March 31, 1998, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL
$25,000 CAPITAL GAIN REINVESTED VALUE OF ANNUAL RATE
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES OF RETURN
- -------------------- ----------- ------------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
May 9, 1986 $ 25,000 -- -- $ 25,000 --
Dec. 31, 1986 25,863 -- -- 25,863 3.5%+
Dec. 31, 1987 24,253 264 1,205 25,722 -0.5
Dec. 31, 1988 27,430 299 2,223 29,952 16.5
Dec. 31, 1989 30,763 2,103 3,701 36,567 22.1
Dec. 31, 1990 28,040 2,112 4,500 34,652 -5.2
Dec. 31, 1991 33,940 3,811 6,475 44,226 27.6
Dec. 31, 1992 36,350 6,019 7,884 50,253 13.6
Dec. 31, 1993 42,010 9,114 9,199 60,323 20.0
Dec. 31, 1994 36,075 10,414 7,899 54,388 -9.8
Dec. 31, 1995 45,955 17,447 11,855 75,257 38.4
Dec. 31, 1996 51,478 24,054 13,792 89,324 18.7
Dec. 31, 1997 62,878 42,824 18,398 124,100 38.9
Mar. 31, 1998 73,278 49,907 21,441 144,626 16.5++
</TABLE>
The portfolio's average annual total return for the one, five and ten year
periods ending March 31, 1998, was 58.8%, 21.9%, and 17.9%, 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 $30,336, and the total amount of income distributions reinvested was
$9,949. 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 period 5/9/86 through 12/31/86
++ Return is for the period 1/1/98 through 3/31/98
1
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
MARCH 31, 1998 - ANNUAL REPORT
April 4, 1998
Dear Fellow Shareholder:
The first quarter of 1998 was a great one for the Value Portfolio. Total
return (income plus appreciation) was +16.5%. This compares to +13.9% for the
S&P 500. Over the past 12 months, total return was +58.8% vs. +48.0% for the
S&P. The table on page 1 shows returns for each year since inception, and the
table below summarizes returns over various intervals. (All returns shown are
AFTER deducting all fees and expenses.)
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS
------------- ------------- -------------
<S> <C> <C> <C>
Value Portfolio 58.8% 21.9% 17.9%
S&P 500 48.0 22.4 18.9
Average Growth & Income Fund 40.2 19.2 16.4
</TABLE>
At the end of March, our cash and other "reserves" accounted for 25% of
portfolio assets. These reserves are a product of sales of stocks which have
reached (or exceeded) our assessment of their business value and higher than
usual new investments by shareholders (more on this later). I do not consider
the accumulation of reserves a "market timing" call, but for better or worse, we
are less exposed to stocks now than we have been since the summer of 1987.
GROWTH IN THE SIZE OF THE FUND
One by-product of these good results is that all three of our stock funds
have been showing up in "top fund performers" tables and in various articles. It
is nice to be recognized for good performance, but the publicity has attracted a
lot of interest from mutual fund investors. This creates a short-term increase
in the number of inquiries about the fund and might lead shareholders to wonder
whether the fund is, or might become, too large.
The immediate logistical challenge of fielding many extra calls a day,
answering questions about the funds and mailing the appropriate information at a
seasonally busy time of year is straining our systems a bit. This has meant
adding temporary staff, after-hours mailroom work for all of us, and a
regrettable increase in the use of the "hold" button by our receptionist.
2
<PAGE>
However, we continue to have higher minimums than most mutual funds, are
discouraging "hot money" investors and are working on our systems to make sure
that we will be able to maintain the quality of our client service effort. In
the meantime, we appreciate your patience with the occasional inconvenience of
dealing with an overly-busy staff member.
The larger question of fund size is one we think about all the time. The
Value Portfolio has grown from $50 million in assets at the beginning of 1993 to
$448 million at March 31, 1998. During this period, shareholders invested $152
million of new cash (38% of the increase) and appreciation accounted for $246
million (62%). New cash inflow was $20 million in the first quarter, which is
higher than normal, but amounts to just over 5% of assets at the beginning of
the year. At this point, we are certainly not experiencing a torrent of new
funds, and I really do not expect that we will.
The fund is larger than it used to be, but it is still small by mutual
fund standards. Even if one aggregates all the assets under management by Weitz
& Co. (approximately $1 billion), we are still very small in the context of a
multi-TRILLION dollar stock market. If we were limited to investing in the very
smallest of companies, size might pose a serious problem at some point. However,
most of the companies in which we have invested are large enough to absorb
millions of additional investment. We are having difficulty finding stocks
AVAILABLE AT ATTRACTIVE PRICES, but this is a function of an expensive stock
market, not a surplus of cash.
INVESTMENT OUTLOOK
I am running out of ways to say that (a) stock prices in general seem
high, so (b) bargains are scarce, but (c) I like our companies' prospects and am
optimistic about the long-term outlook for our portfolio, so I thought the least
I could do was be succinct.
Going forward, we still hold large positions in cable television and other
media and entertainment companies (24%). Over the past few years, the virtues of
the cable business have been discovered by Wall Street, and fears of leveraged
balance sheets, satellite competition, etc. have faded. The stocks have been so
strong that even though our other stocks have also risen, our cable and media
stock positions grew to over 30% of the portfolio. I have sold roughly one-third
of our holdings because the stocks are not as cheap as they used to be, and 30%
seemed too high on general principles. However, the companies are doing very
well, managements have become more responsive to shareholders, and the stocks
are still very reasonably valued.
3
<PAGE>
We have added to our cellular telephone positions, and the stocks have
performed well. 360 Communications, our second largest portfolio holding, has
agreed to merge with AllTel, and if the merger occurs, we will lose one of our
favorite stocks. Takeovers give a short-term boost to portfolio performance, but
they are a mixed blessing if we lose a company that we think has more promise
than its replacement candidates.
In the financial services arena, mortgage REIT's (real estate investment
trusts) continue to look very attractive. As I have discussed in previous
letters, the ownership of mortgages has evolved significantly over the past
10-15 years. Just as Fannie Mae and Freddie Mac, two government sponsored
agencies, have proven to be more efficient investors in "conforming" mortgages,
mortgage REIT's have significant advantages over banks and savings and loan
companies as owners of other types of mortgages. All mortgage REIT's are NOT
created equal, however, and strong management and a sensible business model are
critical. We believe that Redwood Trust, Novastar Financial, and Hanover Capital
have all the ingredients to be good investments for us over the years.
Other financial stocks, especially the large, well-known companies such as
Fannie Mae, American Express, Capital One, Countrywide Credit, etc. have been
very strong. They are great companies, but we are not adding to our positions,
and in some cases have sold some of our shares. Some of the smaller companies
are probably candidates for takeovers as the financial landscape continues to
consolidate. We do not make investments that DEPEND on takeovers, but in some
cases we would be happy to sell to an aggressive acquirer.
We continue to look for new ideas in new industries. We attend investment
conferences, visit companies, read trade journals, talk to investors whose
judgment we respect, and generally turn over all the rocks we can. There are
lots of good businesses we would like to own, but for the time being, other
investors seem willing to outbid us for their shares. We will be patient and we
hope you will be, too.
4
<PAGE>
SHAREHOLDER INFORMATION MEETING
Please join us on WEDNESDAY, MAY 27, 1998 AT THE OMAHA MARRIOTT for this
annual chance to meet our staff and your fellow shareholders and to ask any
questions you may have of your portfolio managers. There is no formal business
to conduct, so the doors will open at 4:00 p.m. and the investment discussion
will begin at 4:30 p.m. The meeting will conclude at 5:45 p.m. We have a large
number of new shareholders this year, so PLEASE CALL THE RECEPTIONIST TO LET US
KNOW IF YOU PLAN TO ATTEND. I look forward to seeing you then.
Sincerely,
/s/ WALLACE WEITZ
Wallace R. Weitz
President, Portfolio Manager
5
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 1998
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ------------ ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 72.8%
BANKING -- 2.2%
30,000 Wells Fargo & Co. $ 4,966,258 $ 9,937,500
------------- -------------
CABLE TELEVISION -- 14.8%
205,500 Adelphia Communications Corp. CL A* 1,414,656 6,087,937
1,349,000 Century Communications Corp. CL A* 7,990,357 17,284,063
370,000 Comcast Corp. Special CL A 4,972,972 13,065,625
400,000 Tele-Communications, Inc. CL A* 5,287,462 12,437,520
500,000 U.S. West Media Group* 9,102,698 17,375,000
------------- -------------
28,768,145 66,250,145
------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 2.4%
121,000 American Classic Voyages Co.* 1,130,363 2,783,000
175,000 Lab Holdings, Inc. 4,712,281 4,112,500
4,875 Lady Baltimore Foods, Inc. 227,781 257,156
270,000 Protection One, Inc. 463,074 3,611,250
------------- -------------
6,533,499 10,763,906
------------- -------------
FEDERAL AGENCIES -- 3.9%
90,000 Federal Home Loan Mortgage Corp. 385,147 4,269,375
75,000 Federal National Mortgage Association 1,270,544 4,743,750
190,000 SLM Holding Corp. 2,453,825 8,288,750
------------- -------------
4,109,516 17,301,875
------------- -------------
FINANCIAL SERVICES -- 5.1%
70,000 American Express Co. 2,031,996 6,435,625
100 Berkshire Hathaway, Inc. CL A* 300,500 6,720,000
80,000 Capital One Financial Corp. 1,795,928 6,310,000
87,000 Imperial Credit Industries, Inc.* 1,442,750 2,060,813
30,000 PS Group, Inc.* 233,125 388,125
40,000 United Asset Management Corp. 1,113,251 1,092,500
------------- -------------
6,917,550 23,007,063
------------- -------------
INFORMATION AND DATA PROCESSING -- 1.4%
142,100 BRC Holdings, Inc.* 3,457,554 5,577,425
180,000 Intelligent Systems Corp.* 380,869 720,000
------------- -------------
3,838,423 6,297,425
------------- -------------
</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 -- 9.2%
11,937 Chris-Craft Industries, Inc.* $ 471,799 $ 702,045
57,200 Daily Journal Corp.* 1,254,216 2,259,400
300,000 Gabelli Global Multimedia Trust, Inc. 2,071,150 3,056,250
135,000 TCI Satellite Entertainment CL A* 831,286 961,875
470,000 Tele-Communications Liberty Media CL A* 5,136,468 16,156,250
340,000 Tele-Communications TCI Ventures Group A* 2,119,096 5,971,250
291,000 Valassis Communications, Inc.* 4,457,840 11,931,000
------------- -------------
16,341,855 41,038,070
------------- -------------
MORTGAGE BANKING -- 7.2%
250,000 Countrywide Credit Industries, Inc. 3,786,742 13,281,250
24,500 Franchise Mortgage Acceptance Co.* 431,725 615,562
128,500 New Century Financial Corp.* 1,236,937 1,268,938
760,485 Resource Bancshares Mtg. Grp., Inc. 9,560,851 12,072,699
179,999 WMF Group, Limited* 1,646,991 4,904,973
------------- -------------
16,663,246 32,143,422
------------- -------------
REAL ESTATE AND CONSTRUCTION -- 2.0%
115,000 Catellus Development Corp.* 671,575 2,127,500
90,000 Forest City Enterprises, Inc. CL A 2,159,453 5,079,375
60,000 SLH Corp.* 191,500 1,920,000
------------- -------------
3,022,528 9,126,875
------------- -------------
REAL ESTATE INVESTMENT TRUSTS -- 9.5%
120,000 Capital Automotive REIT 1,800,000 2,265,000
199,800 Hanover Capital Mortgage Holdings, Inc. 3,056,511 3,246,750
50,000 Imperial Credit Commercial Mtg. Inv. Corp. 756,250 750,000
408,000 NovaStar Financial, Inc. 6,556,055 8,058,000
1,198,117 Redwood Trust, Inc. 28,610,264 28,155,750
------------- -------------
40,779,080 42,475,500
------------- -------------
TELECOMMUNICATIONS -- 15.1%
800,000 360 Communications Co.* 16,085,815 25,000,000
90,000 Airtouch Communications, Inc.* 2,453,614 4,404,375
818,000 Centennial Cellular Corp. CL A* 12,178,041 21,498,103
18,139 CommNet Cellular, Inc.* 482,970 827,592
471,500 Corecomm, Inc. 9,604,426 7,853,445
80,000 Telephone and Data Systems, Inc. 2,966,739 3,800,000
248,200 Vanguard Cellular Systems, Inc. CL A 3,099,688 4,514,138
------------- -------------
46,871,293 67,897,653
------------- -------------
Total Common Stocks 178,811,393 326,239,434
------------- -------------
</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>
WARRANTS -- 0.4%
199,800 Hanover Capital Mtg. Holdings, Inc. , Expiring 9/15/00 $ 68,680 $ 624,375
185,000 Novastar Financial, Inc., Expiring 10/30/00 271,950 1,248,750
------------- -------------
Total Warrants 340,630 1,873,125
------------- -------------
NON-CONVERTIBLE PREFERRED STOCKS -- 1.0%
10,000 Community Bank 13% Pfd. Series B 257,550 280,000
15,000 Crown American Realty Trust 11% Pfd. Series A 750,000 805,313
30,000 Prime Retail, Inc. 10.5% Pfd. Series A 645,000 810,000
69,941 Riggs National Corp. 10.75% Pfd. Series B 1,852,839 1,949,605
34,000 River Bank America 15.0% Pfd. Series A 845,750 782,000
------------- -------------
Total Non-Convertible Preferred Stocks 4,351,139 4,626,918
------------- -------------
<CAPTION>
FACE
AMOUNT
- ------------
<C> <S> <C> <C>
CORPORATE BONDS -- 1.3%
$ 500,000 Salomon, Inc. Notes 7.125% 8/01/99 500,000 507,464
1,500,000 USA Networks, Inc. 7.0% 7/01/03 1,456,175 1,467,094
750,000 Local Financial Corp. 11.0% 9/08/04 750,000 813,750
1,000,000 Dime Savings 10.5% 11/15/05 1,047,428 1,067,500
2,000,000 Harcourt General 6.5% 5/15/11 1,937,474 1,959,770
------------- -------------
Total Corporate Bonds 5,691,077 5,815,578
------------- -------------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 7.3%
750,000 U.S. Treasury Note 6.0% 5/31/98 749,754 750,586
7,000,000 U.S. Treasury Note 5.5% 3/31/00 6,987,985 6,990,156
4,750,000 Federal Natl. Mtg. Assn. 6.625% 7/12/00 4,750,524 4,837,578
2,000,000 Federal Home Loan Bank 7.0% 5/28/02 2,002,816 2,004,688
6,000,000 Federal Home Loan Bank 0.0% 1/21/03 4,312,962 4,321,981
3,000,000 Federal Natl. Mtg. Assn. 7.54% 6/04/04 3,003,432 3,008,906
2,500,000 Federal Natl. Mtg. Assn. 7.55% 6/10/04 2,499,063 2,544,531
1,000,000 Federal Home Loan Bank 6.44% 11/28/05 1,001,207 1,032,031
1,000,000 Federal Natl. Mtg. Assn. 7.44% 11/06/06 1,001,946 1,006,719
6,000,000 Federal Natl. Mtg. Assn. 6.56% 11/26/07 6,000,000 6,070,296
------------- -------------
Total U.S. Government and Agency Securities 32,309,689 32,567,472
------------- -------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT COST VALUE
- ------------ ------------- -------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 17.2%
$ 18,765,281 Norwest U.S. Government Money Market Fund $ 18,765,281 $ 18,765,281
4,000,000 Federal Home Loan Bank Discount Note 4/08/98 3,995,854 3,995,067
12,000,000 Federal Home Loan Bank Discount Note 5/06/98 11,937,817 11,933,640
15,000,000 U.S. Treasury Bill 5/07/98 14,924,910 14,922,609
3,200,000 U.S. Treasury Bill 5/14/98 3,180,753 3,180,366
6,000,000 Federal Home Loan Bank Discount Note 6/10/98 5,937,233 5,934,917
8,000,000 Federal Home Loan Mtg. Corp. Discount Note 6/12/98 7,913,600 7,910,778
4,500,000 Federal Home Loan Bank Discount Note 6/12/98 4,451,400 4,451,911
6,000,000 Federal Home Loan Bank Discount Note 8/03/98 5,890,260 5,887,916
------------- -------------
Total Short-Term Securities 76,997,108 76,982,485
------------- -------------
Total Investments in Securities $ 298,501,036 448,105,012
------------- -------------
-------------
Covered Call Options Written at Market Value -- (0.1%) (560,500)
Other Assets Less Liabilities -- 0.1% 731,973
-------------
Total Net Assets -- 100% $ 448,276,485
-------------
-------------
Net Asset Value Per Share $ 29.311
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
EXPIRATION
NO. OF DATE/STRIKE
CONTRACTS PRICE VALUE
- --------------- -------------- -------------
<C> <S> <C> <C>
COVERED CALL OPTIONS WRITTEN AT
MARKET VALUE
225 Capital One Financial Corp. Sept. 1998/80 $ (171,562)
350 Countrywide Credit Industries, Inc. July 1998/50 (234,063)
420 Valassis Communications, Inc. July 1998/40 (154,875)
-------------
Total written call options (premiums received $528,542) $ (560,500)
-------------
-------------
</TABLE>
*Non-income producing
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $298,501,036) $448,105,012
Accrued interest and dividends receivable 857,972
Deposits with brokers for covered call options written 528,762
------------
Total assets 449,491,746
------------
Liabilities:
Due to adviser 428,094
Payable for securities purchased 207,336
Covered call options written, at value (proceeds received $528,543) 560,500
Other expenses 19,331
------------
Total liabilities 1,215,261
------------
Net assets applicable to outstanding capital stock $448,276,485
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 15,294
Additional paid-in capital 266,248,779
Accumulated undistributed net realized gains 32,440,393
Net unrealized appreciation (note 5) 149,572,019
------------
Net assets $448,276,485
------------
------------
Net asset value and redemption price per share of outstanding
capital stock (15,293,691 shares outstanding) $ 29.311
------------
------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1998
<TABLE>
<S> <C>
Investment income:
Dividends $ 4,140,662
Interest 3,393,357
------------
Total investment income 7,534,019
------------
Expenses (note 3):
Investment advisory fee 3,401,132
Administrative fee 608,221
Director's fees 20,707
Dividends on securities sold short 245,125
Other expenses 298,826
------------
Total expenses 4,574,011
------------
Net investment income 2,960,008
------------
Realized and unrealized gain on investments:
Realized gain on investments 51,507,135
Net unrealized appreciation of investments 106,357,105
------------
Net realized and unrealized gain on investments 157,864,240
------------
Net increase in net assets resulting from operations $160,824,248
------------
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1998 1997
-------------- --------------
<S> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 2,960,008 $ 2,339,666
Net realized gain 51,507,135 22,078,674
Net unrealized appreciation 106,357,105 8,381,030
-------------- --------------
Net increase in net assets resulting from operations 160,824,248 32,799,370
-------------- --------------
Distributions to shareholders from:
Net investment income (4,210,726) (1,494,741)
Net realized gain (34,829,986) (13,158,732)
-------------- --------------
Total distributions (39,040,712) (14,653,473)
-------------- --------------
Capital share transactions (note 4):
Proceeds from sales 57,926,067 102,398,781
Payments for redemptions (45,164,817) (29,748,582)
Reinvestment of distributions 38,134,324 14,292,423
-------------- --------------
Total increase from capital share transactions 50,895,574 86,942,622
-------------- --------------
Total increase in net assets 172,679,110 105,088,519
-------------- --------------
Net assets:
Beginning of period 275,597,375 170,508,856
-------------- --------------
End of period $ 448,276,485 $ 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>
YEAR ENDED MARCH 31,
---------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD: $20.988 $19.457 $15.552 $15.684 $15.526 $13.926 $12.842 $11.854 $11.772 $10.517
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.219 0.178 0.157 0.144 0.089 0.221 0.360 0.319 0.421 0.335
Net gains or losses on securities
(realized and unrealized) 11.026 2.580 5.247 0.452 0.683 2.199 1.445 1.117 0.720 1.238
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
Total from investment operations 11.245 2.758 5.404 0.596 0.772 2.420 1.805 1.436 1.141 1.573
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.313) (0.125) (0.418) -- (0.023) (0.275) (0.324) (0.380) (0.430) (0.318)
Distributions from realized gains (2.609) (1.102) (1.081) (0.728) (0.591) (0.545) (0.397) (0.068) (0.629) --
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
Total distributions (2.922) (1.227) (1.499) (0.728) (0.614) (0.820) (0.721) (0.448) (1.059) (0.318)
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $29.311 $20.988 $19.457 $15.552 $15.684 $15.526 $13.926 $12.842 $11.854 $11.772
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
TOTAL RETURN 58.8% 14.3% 35.9% 4.1% 4.9% 18.3% 14.3% 12.6% 9.6% 15.2%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $448,276 $275,597 $170,509 $118,776 $103,840 $67,617 $35,948 $27,503 $24,540 $16,394
Ratio of expenses to average net
assets 1.27% 1.29% 1.35% 1.42% 1.41% 1.35% 1.40% 1.49% 1.46% 1.50%
Ratio of net investment income to
average net assets 0.87% 0.93% 0.91% 1.06% 0.64% 1.66% 2.75% 2.71% 3.71% 3.30%
Portfolio turnover rate 39% 39% 40% 28% 23% 23% 35% 29% 49% 25%
Average commission rate paid (per
share)+ $0.0514 $0.0476
</TABLE>
+Required by regulations issued in 1995.
See accompanying notes to financial statements.
13
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(1) ORGANIZATION
Weitz Series Fund, Inc. (the "Fund"), is registered under the Investment
Company Act of 1940 as an open-end diversified management investment company
issuing shares in series, each series representing a distinct portfolio with
its own investment objectives and policies. At March 31, 1998, 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
invests 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 value determined using the following valuation
methods:
- Securities traded on a national or regional securities exchange and
over-the-counter securities traded on the NASDAQ national market are
valued at the last sales price; if there were no sales on that day,
securities are valued at the mean between the latest available and
representative bid and asked prices.
- Securities not listed on an exchange are valued at the mean between
the latest available and representative bid and ask prices.
- The value of certain debt securities for which market quotations are
not readily available may be based upon current market prices of
securities which are comparable in coupon, rating and maturity or an
appropriate matrix utilizing similar factors.
- The value of securities for which market quotations are not readily
available, including restricted and not readily marketable
securities, is determined in good faith under the supervision of the
Fund's Board of Directors.
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
14
<PAGE>
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.
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 AND DISTRIBUTIONS TO SHAREHOLDERS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Income dividends and dividends on short
positions are recorded on the ex-dividend date. Interest, including
amortization of discount or premium, is accrued as earned. Distributions
to shareholders are recorded on the ex-dividend date.
Realized gains or losses are determined by specifically identifying the
security sold.
(d) 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.
(e) SECURITIES SOLD SHORT
The Portfolio periodically engages 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 year ended March 31, 1998.
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 year ended March 31, 1998,
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. 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>
YEAR ENDED MARCH 31,
1998 1997
----------- -----------
<S> <C> <C>
Transactions in shares:
Shares issued.............................................................. 2,346,283 5,119,390
Shares redeemed............................................................ (1,914,458) (1,445,654)
Reinvested dividends....................................................... 1,730,795 694,076
----------- -----------
Net increase............................................................. 2,162,620 4,367,812
----------- -----------
----------- -----------
</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 $120,608,865 and
$159,933,526, respectively. The cost of investments is the same for
financial reporting and Federal income tax purposes. At March 31, 1998, the
aggregate gross unrealized appreciation and depreciation, based on cost for
Federal income tax purposes, were $156,224,680 and $6,652,661, respectively.
Transactions relating to covered call options during the year ended March
31, 1998, are summarized as follows:
<TABLE>
<CAPTION>
NUMBER OF
OPTIONS PREMIUM
----------- -----------
<S> <C> <C>
Options written, beginning of period.......................................... -- --
Options written, during the period............................................ 109,500 576,991
Options exercised during the period........................................... (10,000) (48,448)
----------- -----------
Options outstanding, end of period............................................ 99,500 528,543
----------- -----------
----------- -----------
</TABLE>
17
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders
Weitz Series Fund, Inc. -- Value Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Value Portfolio of Weitz Series Fund, Inc., including the schedule of
investments in securities, as of March 31, 1998, and the related statement of
operations for the year then ended, and the statements of changes in net assets
and the financial highlights for the two years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The financial
highlights for all years prior to April 1, 1996, were audited by other auditors
whose report, dated April 17, 1996, expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1998, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Value Portfolio of Weitz Series Fund, Inc. as of March 31, 1998, and the results
of its operations, changes in its net assets, and financial highlights for the
periods indicated above in conformity with generally accepted accounting
principles.
/s/ McGladrey & Pullen, LLP
New York, New York
April 17, 1998
18
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> WEITZ VALUE PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 298,501,036
<INVESTMENTS-AT-VALUE> 448,105,012
<RECEIVABLES> 857,972
<ASSETS-OTHER> 528,762
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 449,491,746
<PAYABLE-FOR-SECURITIES> 207,336
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,007,925
<TOTAL-LIABILITIES> 1,215,261
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 266,264,073
<SHARES-COMMON-STOCK> 15,293,691
<SHARES-COMMON-PRIOR> 13,131,071
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 32,440,393
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 149,572,019
<NET-ASSETS> 448,276,485
<DIVIDEND-INCOME> 4,140,662
<INTEREST-INCOME> 3,393,357
<OTHER-INCOME> 0
<EXPENSES-NET> (4,574,011)
<NET-INVESTMENT-INCOME> 2,960,008
<REALIZED-GAINS-CURRENT> 51,507,135
<APPREC-INCREASE-CURRENT> 106,357,105
<NET-CHANGE-FROM-OPS> 160,824,248
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,210,726)
<DISTRIBUTIONS-OF-GAINS> (34,829,986)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,346,283
<NUMBER-OF-SHARES-REDEEMED> (1,914,458)
<SHARES-REINVESTED> 1,730,795
<NET-CHANGE-IN-ASSETS> 172,679,110
<ACCUMULATED-NII-PRIOR> 1,152,564
<ACCUMULATED-GAINS-PRIOR> 15,861,398
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,401,132
<INTEREST-EXPENSE> 33,608
<GROSS-EXPENSE> 4,574,011
<AVERAGE-NET-ASSETS> 341,691,888
<PER-SHARE-NAV-BEGIN> 20.988
<PER-SHARE-NII> 0.219
<PER-SHARE-GAIN-APPREC> 11.026
<PER-SHARE-DIVIDEND> (0.313)
<PER-SHARE-DISTRIBUTIONS> (2.609)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.311
<EXPENSE-RATIO> 1.27
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> WEITZ FIXED INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 30,659,517
<INVESTMENTS-AT-VALUE> 31,229,501
<RECEIVABLES> 426,959
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31,656,460
<PAYABLE-FOR-SECURITIES> 1,299,739
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,294
<TOTAL-LIABILITIES> 1,322,033
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,716,466
<SHARES-COMMON-STOCK> 2,693,036
<SHARES-COMMON-PRIOR> 2,075,027
<ACCUMULATED-NII-CURRENT> 447,557
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (399,580)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 569,984
<NET-ASSETS> 30,334,427
<DIVIDEND-INCOME> 18,716
<INTEREST-INCOME> 1,791,220
<OTHER-INCOME> 0
<EXPENSES-NET> (195,609)
<NET-INVESTMENT-INCOME> 1,614,327
<REALIZED-GAINS-CURRENT> 59,909
<APPREC-INCREASE-CURRENT> 892,110
<NET-CHANGE-FROM-OPS> 2,566,346
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,462,725)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,080,177
<NUMBER-OF-SHARES-REDEEMED> (583,294)
<SHARES-REINVESTED> 121,126
<NET-CHANGE-IN-ASSETS> 7,985,387
<ACCUMULATED-NII-PRIOR> 295,955
<ACCUMULATED-GAINS-PRIOR> (459,490)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 130,406
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 237,184
<AVERAGE-NET-ASSETS> 26,148,495
<PER-SHARE-NAV-BEGIN> 10.770
<PER-SHARE-NII> 0.653
<PER-SHARE-GAIN-APPREC> 0.470
<PER-SHARE-DIVIDEND> (0.629)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.264
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> WEITZ GOVERNMENT MONEY MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 8,367,664
<INVESTMENTS-AT-VALUE> 8,367,664
<RECEIVABLES> 1,102
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,368,766
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38,845
<TOTAL-LIABILITIES> 38,845
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,329,921
<SHARES-COMMON-STOCK> 8,329,921
<SHARES-COMMON-PRIOR> 5,819,938
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 8,329,921
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 457,092
<OTHER-INCOME> 0
<EXPENSES-NET> (41,977)
<NET-INVESTMENT-INCOME> 415,115
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 415,115
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (415,115)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,478,253
<NUMBER-OF-SHARES-REDEEMED> (14,371,953)
<SHARES-REINVESTED> 403,683
<NET-CHANGE-IN-ASSETS> 2,509,983
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 41,977
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 93,751
<AVERAGE-NET-ASSETS> 8,392,108
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.049
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.049)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> WEITZ HICKORY PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 32,896,894
<INVESTMENTS-AT-VALUE> 45,544,063
<RECEIVABLES> 53,558
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 45,597,621
<PAYABLE-FOR-SECURITIES> 1,221,836
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 47,672
<TOTAL-LIABILITIES> 1,269,508
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,520,950
<SHARES-COMMON-STOCK> 1,507,036
<SHARES-COMMON-PRIOR> 646,671
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,159,994
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,647,169
<NET-ASSETS> 44,328,113
<DIVIDEND-INCOME> 176,690
<INTEREST-INCOME> 90,595
<OTHER-INCOME> 0
<EXPENSES-NET> (292,745)
<NET-INVESTMENT-INCOME> (25,460)
<REALIZED-GAINS-CURRENT> 1,995,094
<APPREC-INCREASE-CURRENT> 10,256,171
<NET-CHANGE-FROM-OPS> 12,225,805
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (54,656)
<DISTRIBUTIONS-OF-GAINS> (1,462,058)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 917,276
<NUMBER-OF-SHARES-REDEEMED> (128,242)
<SHARES-REINVESTED> 71,331
<NET-CHANGE-IN-ASSETS> 32,106,777
<ACCUMULATED-NII-PRIOR> 29,576
<ACCUMULATED-GAINS-PRIOR> 677,498
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 199,039
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 292,745
<AVERAGE-NET-ASSETS> 20,571,563
<PER-SHARE-NAV-BEGIN> 18.899
<PER-SHARE-NII> (0.007)
<PER-SHARE-GAIN-APPREC> 12.503
<PER-SHARE-DIVIDEND> (0.073)
<PER-SHARE-DISTRIBUTIONS> (1.908)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.414
<EXPENSE-RATIO> 1.46
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
