<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 Minnesota, 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.
HICKORY PORTFOLIO
QUARTERLY
REPORT
JUNE 30, 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. -- 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 and five year periods ended
June 30, 1998, and for the period since inception, calculated in accordance with
SEC standardized formulas.
<TABLE>
<CAPTION>
DIFFERENCE
PERIOD ENDED HICKORY FUND S&P 500 HICKORY FUND -- S&P 500
- ---------------------------------- ------------- ----------- -------------------------
<S> <C> <C> <C>
June 30, 1998 (6 months) 36.0% 17.7% 18.3%
Dec. 31, 1997 39.2 33.4 5.8
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 257.9 183.5 74.4
Compound Annual
Average Return 27.5 21.9 5.6
</TABLE>
The portfolio's average annual total return for the one and five years ended
June 30, 1998, and for the period since inception (April 1, 1993) was 62.0%,
29.9% and 27.5%, respectively. The returns assume redemption at the end of each
period and reinvestment of dividends.
2
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $100,000
INVESTMENT IN HICKORY PORTFOLIO & S&P 500
The graph below shows the growth in value of a $100,000 investment in Hickory
since inception (April 1, 1993) to June 30, 1998, 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.
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 $115,026 $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 $234,145
10-31-97 $251,508 $226,334
11-30-97 $248,562 $236,802
12-31-97 $263,210 $240,866
1-31-98 $271,051 $243,527
2-28-98 $285,577 $261,080
3-31-98 $326,656 $274,439
4-30-98 $353,861 $277,199
5-31-98 $341,132 $272,440
6-30-98 $357,938 $283,497
</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.
3
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
JUNE 30, 1998 - QUARTERLY REPORT
July 6, 1998
Dear Fellow Shareholder:
The second quarter was again a good one for Hickory. Our investments
generated a total return of 9.6% during the quarter, bringing our year to date
returns to 36.0%. Over the same periods the S&P 500 (with dividends reinvested)
returned 3.3% and 17.7%, respectively. Over the last twelve months Hickory's
total return was 62.0%. This compares to 30.1% for the S&P 500 and 25.4% for the
average growth mutual fund (according to Lipper). Fund assets grew from under
$45 million to over $200 million over the three month period.
REVIEW AND OUTLOOK
In some ways this was a very ordinary quarter for Hickory. In other ways
it was quite extraordinary. A total return of over 9% is certainly much better
than ordinary (and much better than we should expect in the future), but we
received this return in a manner that is typical for Hickory. Significantly more
than all of the quarter's returns were generated in the first three weeks and
the last two weeks of the quarter. During the two months in the middle of the
quarter our investments lost almost 8%. A correction of this magnitude has been
quite common for Hickory. This was the thirteenth time in just over five years
that Hickory's price has declined by five percent or more. As I have told you in
my previous letters, the combination of concentration in selected companies and
sectors and a tendency to buy relatively small companies would logically cause
Hickory to be volatile in the short run. This pattern has indeed been seen
historically, and it is reasonable to expect it to continue.
Hickory's good returns continue to be driven largely by the same stocks
that have been helpful to us in recent quarters. In particular, cable stocks,
cellular stocks, and Capital One Financial contributed to our above average
returns this quarter. The proposed sale of Centennial Cellular (confirmed just
after the end of the quarter) and AT&T's purchase of Telecommunications, Inc.
(TCI) were particularly significant for Hickory. In both cases we benefited both
directly from our holdings of Centennial and TCI and indirectly from our other
cellular and cable holdings. Capital One rose more than 50% during the quarter,
mostly driven by investor perceptions catching up to great fundamentals.
However, part of this rise came when it was announced that Capital One would be
added to the S&P 500 and index investors had to buy the stock whatever the
price. Needless to say, since the end of the quarter I have used this
opportunity to reduce our position in this no longer cheap stock.
Probably the most remarkable occurrence during the quarter was the
increase in Hickory's assets. The new cash flowing into Hickory has created some
challenges for all of us, particularly for Tom Carney, our trader, and for
everyone in operations and customer service. Thus far we have
4
<PAGE>
been able to put most of the new money to work, but Hickory's cash position is
higher than normal. We will never spend cash just for the sake of spending it.
We want to be sure that when we do make an investment, it is to buy a good
company at a good price.
We at Weitz & Co. have given the future growth of Hickory's asset base
much thought in recent weeks. At this time no decisions have been reached, but
we have concluded that we are not fundamentally opposed to the concept of
closing the fund to new investors at some point. Many of us have significant
stakes in Hickory and we are quite sensitive to the effects assets under
management might have on Hickory's long term returns. We believe our interests
are aligned with yours.
I welcome all the new shareholders to Hickory, and I look forward to a
long and profitable relationship. However, I feel compelled to remind you that
Hickory is not for everyone. It cannot be overemphasized that Hickory is focused
on long term results and is designed for those investors who plan to leave their
investments in Hickory untouched for at least five years. We should expect that
short term volatility and periodic significant corrections will be commonplace.
My outlook for the future remains what it was three months ago. We should
not expect future returns to come close to matching those of the recent past,
and a significant correction is always possible. Nevertheless, I continue to
believe that our approach of buying growing value, priced at a discount can
yield satisfactory results. We are still able to find stocks to buy. The
mortgage REIT stocks we hold, along with many of our other specialty financial
stocks, have not performed well recently, but we continue to believe there is
value to be found in this sector. I am convinced that there will always be
opportunities for the patient value investor.
Many of you might have seen a newsletter we mailed to shareholders in late
June. In it Wally wrote a letter with a message that I think bears repeating, so
I am reprinting it on the following page.
As always, I appreciate your support and I welcome your questions.
Sincerely,
/s/ RICHARD F. LAWSON
Richard F. Lawson
Portfolio Manager
5
<PAGE>
WALLY'S LETTER TO SHAREHOLDERS DATED JUNE 1998
WHAT'S WRONG WITH THIS PICTURE?
"Playing" the stock market, especially through mutual funds, seems to be
the new national pastime. Newspaper mutual fund tables are starting to resemble
the sports pages, with rankings of the top performing funds over the past 5
years, 12 months, 4 WEEKS (!), etc., and lists of fund managers who have "hot
hands" at the moment. CNBC business news sounds a lot like ESPN, as breathless
reporters chase sound bites from money managers and corporate executives.
Magazine articles about funds and fund managers are sometimes educational, but
many seem to have been written for the purpose of selling reprints to fund
companies to use in marketing.
Our funds have been the beneficiaries of some of this publicity, and I
think it has helped us connect with many serious, intelligent, long-term
investors. On the other hand, there are a few new shareholders who trade in and
out of the funds on a weekly (or even daily) basis or ask questions that betray
their lack of understanding of our long-term approach to investing. It is very
important to us that our clients have realistic expectations, so I thought it
might be helpful to list some of our working assumptions:
- Investing is more art than science -- we have confidence in our
investment approach, but the timing and pattern of returns is absolutely
unpredictable;
- Periodic general market declines of 15-20% are inevitable, and 50%
declines (as in 1973-74) are possible. We believe that our approach
lessens the risk of PERMANENT loss of capital, but volatility is a fact
of stock investing life;
- In managing the funds, we try to take advantage of the misperceptions
and emotional over-reactions of other investors -- going counter to the
crowd. Thus, our portfolio will be different from "the market," and will
suffer periods (sometimes extended periods) of under-performance.
We take your investment seriously, we invest our own money in the same
funds so we have a coincidence of interest, and we believe the long-term results
will be good. However, if any of these assumptions troubles you, our fund may
not be the right investment for you -- in fact, stock investing may not be right
for you. Assuming we ARE on the same wavelength, I look forward to many years of
helping you get rich slowly.
Sincerely,
/S/ WALLACE R. WEITZ
Wallace R. Weitz
President, Portfolio
Manager
6
<PAGE>
SCHEDULE OF INVESTMENTS
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS -- 79.5%
AUTO SERVICES -- 2.9%
418,000 Insurance Auto Auctions, Inc.* $ 5,227,063 $ 5,904,250
----------- -----------
CABLE TELEVISION -- 11.0%
131,900 Adelphia Communications Corp. CL A* 2,750,681 4,896,787
475,900 Century Communications Corp. CL A* 5,354,301 8,923,125
106,000 Comcast Corporation CL A 3,338,775 4,213,500
11,500 Comcast Corporation Special CL A 168,233 466,829
50,448 Tele-Communications, Inc. CL A* 1,352,944 1,939,095
48,000 MediaOne Group, Inc.* 1,286,507 2,109,000
----------- -----------
14,251,441 22,548,336
----------- -----------
DIVERSIFIED INDUSTRIES -- 1.2%
27,700 Lynch Corp.* 2,570,411 2,534,550
----------- -----------
FINANCIAL SERVICES -- 12.0%
27,000 Capital One Financial Corp. 938,171 3,353,063
678,100 Imperial Credit Industries, Inc.* 14,995,695 15,935,350
537,000 United Panam Financial Corp.* 5,836,001 5,504,250
----------- -----------
21,769,867 24,792,663
----------- -----------
HEALTH CARE -- 2.1%
189,900 Lab Holdings, Inc. 4,280,727 4,403,306
----------- -----------
INFORMATION SERVICES -- 1.0%
51,700 Data Transmission Network Corp.* 1,681,846 2,068,000
----------- -----------
MEDIA AND ENTERTAINMENT -- 11.9%
172,500 Tele-Communications Liberty Media CL A* 5,310,837 6,695,156
480,004 Tele-Communications TCI Ventures Group A* 7,849,181 9,630,080
210,000 Valassis Communications, Inc.* 6,592,915 8,098,125
----------- -----------
19,752,933 24,423,361
----------- -----------
MORTGAGE BANKING -- 9.3%
343,000 New Century Financial Corp.* 3,429,811 3,430,000
575,000 Resource Bancshares Mtg. Grp., Inc. 9,505,009 10,709,375
320,000 Southern Pacific Funding Corp.* 5,050,712 5,020,000
----------- -----------
17,985,532 19,159,375
----------- -----------
</TABLE>
7
<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 -- 1.0%
36,100 Forest City Enterprises, Inc. CL A $ 1,736,894 $ 2,136,669
----------- -----------
REAL ESTATE INVESTMENT TRUSTS -- 12.1%
400,000 Fortress Investment Corp. 8,000,000 8,000,000
222,600 Hanover Capital Mortgage Holdings, Inc. 3,596,028 2,114,700
25,000 Healthcare Financial Partners Units** 2,500,000 2,500,000
520,000 NovaStar Financial, Inc. 9,749,352 8,515,000
220,000 Redwood Trust, Inc. 5,019,867 3,863,750
----------- -----------
28,865,247 24,993,450
----------- -----------
TELECOMMUNICATIONS SERVICES -- 14.3%
80,000 360 Communication Co.* 1,612,324 2,560,000
243,500 Centennial Cellular Corp. CL A* 5,411,528 9,085,594
95,000 Corecomm, Inc.* 1,416,747 2,493,750
1,500 East/West Communications, Inc.* 225 3,750
809,600 Vanguard Cellular Systems, Inc. CL A* 14,557,767 15,281,200
----------- -----------
22,998,591 29,424,294
----------- -----------
MISCELLANEOUS SECURITIES -- 0.7% 1,333,260 1,350,000
----------- -----------
Total Common Stocks 142,453,812 163,738,254
----------- -----------
WARRANTS -- 1.1%
424,300 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00 1,248,753 477,338
260,000 NovaStar Financial, Inc., Expiring 2/03/01 1,688,775 1,820,000
----------- -----------
Total Warrants 2,937,528 2,297,338
----------- -----------
<CAPTION>
FACE
AMOUNT
- -----------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 18.4%
$12,043,785 Norwest U.S. Government Money Market Fund 12,043,785 12,043,785
5,000,000 Federal Home Loan Bank Discount Note 7/17/98 4,988,134 4,987,297
5,000,000 U.S. Treasury Bill 8/20/98 4,965,868 4,965,291
6,000,000 Federal Farm Credit Bank Discount Note 8/31/98 5,945,812 5,944,592
5,000,000 Federal Home Loan Bank Discount Note 9/02/98 4,953,012 4,952,312
5,000,000 Federal Home Loan Bank Discount Note 9/23/98 4,937,350 4,935,659
----------- -----------
37,833,961 37,828,936
----------- -----------
Total Investments in Securities $183,225,301 203,864,528
----------- -----------
-----------
Other Assets Less Liabilities -- 1.0% 2,117,722
-----------
Total Net Assets -- 100% $205,982,250
-----------
-----------
Net Asset Value Per Share $ 31.776
-----------
-----------
</TABLE>
*Non-income producing
**Each unit consists of five shares of common stock and one stock purchase
warrant
8
