<PAGE>
WEITZ SERIES FUND, INC.
- --------------------------------------------------------------------------------
HICKORY PORTFOLIO
QUARTERLY
REPORT
DECEMBER 31, 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>
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
PERFORMANCE SINCE INCEPTION
The following table summarizes performance information for the fund as compared
to the S&P 500 over the periods indicated. The table also sets forth average
annual total return data for the fund for the one year period ended December 31,
1997, and for the period since inception, calculated in accordance with SEC
standardized formulas.
<TABLE>
<CAPTION>
DIFFERENCE
PERIOD ENDED HICKORY FUND S&P 500 HICKORY FUND -- S&P 500
- ------------------------------------ ------------- ----------- -------------------------
<S> <C> <C> <C>
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 163.2 140.9 22.3
Compound Annual
Average Return 22.6 20.3 2.3
</TABLE>
The portfolio's average annual total return for the one year ending December 31,
1997, and for the period since inception (April 1, 1993) was 39.2% and 22.6%,
respectively. The returns assume redemption at the end of each period and
reinvestment of dividends.
1
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The graph below shows the growth in value of a $100,000 investment in Hickory
since inception (April 1, 1993) to December 31, 1997, assuming the reinvestment
of all capital gain distributions and dividends, compared to the growth in value
of $100,000 invested in the S&P 500 for the same period, also assuming dividend
reinvestment. Hickory's performance numbers are calculated after deducting all
fees and expenses.
Hickory S&P 500
---------- ----------
Value of Value of
Period $100,000 $100,000
- ---------- ---------- ----------
03/31/93 $ 100,000 $ 100,000
04/30/93 $ 91,621 $ 97,583
05/31/93 $ 95,999 $ 100,184
06/30/93 $ 96,609 $ 100,476
07/31/93 $ 99,489 $ 100,071
08/31/93 $ 107,204 $ 103,859
09/30/93 $ 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
01/31/94 $ 118,421 $ 109,034
02/28/94 $ 116,476 $ 106,076
03/31/94 $ 110,109 $ 101,457
04/30/94 $ 109,060 $ 102,759
05/31/94 $ 110,065 $ 104,440
06/30/94 $ 104,789 $ 101,881
07/31/94 $ 104,153 $ 105,224
08/31/94 $ 110,360 $ 109,530
09/30/94 $ 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
01/31/95 $ 99,870 $ 109,599
02/28/95 $ 103,994 $ 113,865
03/31/95 $ 105,513 $ 117,219
04/30/95 $ 105,229 $ 120,668
05/31/95 $ 111,054 $ 125,480
06/30/95 $ 118,331 $ 128,392
07/31/95 $ 124,859 $ 132,647
08/31/95 $ 133,445 $ 132,978
09/30/95 $ 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
01/31/96 $ 146,980 $ 151,917
02/29/96 $ 148,848 $ 153,328
03/31/96 $ 148,334 $ 154,805
04/30/96 $ 151,650 $ 157,084
05/31/96 $ 159,513 $ 161,128
06/30/96 $ 163,383 $ 161,741
07/31/96 $ 150,145 $ 154,599
08/31/96 $ 160,466 $ 157,864
09/30/96 $ 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
01/31/97 $ 195,946 $ 191,903
02/28/97 $ 200,614 $ 193,409
03/31/97 $ 190,121 $ 185,477
04/30/97 $ 190,461 $ 196,540
05/31/97 $ 217,223 $ 208,497
06/30/97 $ 220,947 $ 217,832
07/31/97 $ 229,579 $ 235,160
08/31/97 $ 232,386 $ 221,995
09/30/97 $ 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
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.
2
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WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
DECEMBER 31, 1997 - QUARTERLY REPORT
January 6, 1998
Dear Fellow Shareholder:
Hickory's strong results continued in the fourth quarter despite a more
unsettled stock market environment. The fund gained 6.1% during the last three
months of the year, bringing the total return for the year to 39.2%. Over the
same periods, the S&P 500 (including reinvested dividends) had total returns of
2.9% and 33.4%, respectively.
Hickory's results have also been quite satisfactory relative to other
stock mutual funds. Hickory's returns over the last year, three years, and since
inception are shown in the table below compared to the results of the average
growth fund, as reported by Lipper.
HICKORY VS. AVERAGE GROWTH FUND
(AVERAGE ANNUAL TOTAL RETURN)
<TABLE>
<CAPTION>
HICKORY AVERAGE
PERIOD TOTAL RETURN GROWTH FUND DIFFERENCE
- -------------------------------------------- --------------- --------------- -------------
<S> <C> <C> <C>
1 year (12-31-96 to 12-31-97) 39.2% 25.3% 13.9%
3 years (12-31-94 to 12-31-97) 38.3% 25.4% 12.9
Since inception (4-1-93 to 12-31-97) 22.6% 17.2% 5.4
</TABLE>
REVIEW AND OUTLOOK
Long time readers of these letters should be familiar with the three
principles I use in managing Hickory.
1. BUY GROWING VALUE, PRICED AT A DISCOUNT: I attempt to identify good
companies which I think will be able to grow shareholder value at an
attractive rate over many years, and buy them at a discount to what I
think the company is worth today.
3
<PAGE>
2. CONCENTRATE: Recognizing that there are only a limited number of
great investment opportunities, I focus Hickory's assets on those
companies and industries that I believe are the most attractive
investments.
3. INVEST FOR THE LONG TERM: I believe that the appropriate time horizon
for stock investments is at least three to five years. Therefore, I
manage Hickory to maximize long-term returns, placing little emphasis
on the next month or quarter.
During 1997, these strategies were once again successful. The underlying
performance of the businesses we owned during the year were generally quite
good. Even better, in many cases we were rewarded as the prices of our stocks
rose more than the increase in the underlying values of the businesses,
partially closing the gap between current price and current value. For example,
in previous letters I have highlighted Valassis Communications and Capital One
Financial as attractive businesses with undervalued stocks. Both businesses
performed well in 1997, but the stocks did even better, rising 75% and 51%,
respectively.
My willingness to concentrate on what I perceive to be the most attractive
opportunities was also, on balance, helpful to our 1997 results. Several of our
largest positions had particularly strong years. In addition to Valassis and
Capital One, other strong performers among our largest positions included
Centennial Cellular (up 69%), Telecommunications, Inc. (up over 100%), and
Comcast (up 78%).
My long-term focus was also rewarded this year. The best examples of this
came from the cable stocks. This is an industry I have liked and owned since
before Hickory's inception. However, the stocks had performed badly since 1994,
as the companies have struggled with rate re-regulation and the stocks have
struggled with negative perceptions about competition and the costs of upgrading
physical plant. By the fall of 1996, I felt that the bad news was fully
reflected in the prices of the stocks, and I significantly increased our
positions. My patience was rewarded this year as investors began to realize that
competition would not be as big a threat as they had feared, and as technology
companies such as Microsoft showed an increased interest in the cable
infrastructure.
As usual, not everything I did worked as planned. By far the most glaring
example of this is Redwood Trust, our single largest position and a significant
under-performer during the year. I continue to believe that the company's
management, cost structure, and long-term competitive position are strong and
that Redwood's stock is currently undervalued.
4
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After three very strong years, what should we expect for 1998 and beyond?
My outlook remains much the same as it has been over the past two years. No one
should expect a repeat of Hickory's recent performance -- returns greater than
30% per year are simply not sustainable. As a matter of fact, I would not be
surprised if Hickory's total return over the next three years matched our
average annual return over the last three years. I continue to worry about
valuations in the overall stock market. Stock investors should be comfortable
with the possibility of either a significant correction or an extended period
where annual stock returns average less than 10%, or both. Nevertheless, I
remain comfortable having all of my personal investable assets in Hickory. I
still very much like the prospects of the companies we own. While some of our
stocks are not as cheap as they once were (i.e., cable), others appear to me to
be much cheaper (i.e., Redwood Trust), and I remain optimistic about our
long-term prospects.
SHAREHOLDER MEETING
This year we plan to hold our shareholder meeting at the Omaha Marriott on
May 27. It doesn't look like we'll have any official business to conduct, so we
should be able to answer lots of your questions. I hope we will see you then.
I appreciate your continuing support and I look forward to your questions.
Sincerely,
/S/ RICHARD F. LAWSON
Richard F. Lawson
Portfolio Manager
5
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(This page has been left blank intentionally.)
6
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SCHEDULE OF INVESTMENTS
7
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WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 88.5%
CABLE TELEVISION -- 16.5%
27,000 Adelphia Communications Corp. CL A* $ 173,000 $ 499,500
130,000 Century Communications Corp. CL A* 651,569 1,267,500
13,000 Comcast Corporation CL A 201,025 414,375
11,500 Comcast Corporation Special CL A 168,233 362,969
15,448 Tele-Communications, Inc. CL A* 185,444 431,578
20,000 U.S. West Media Group* 366,200 577,500
------------ ------------
1,745,471 3,553,422
------------ ------------
CONSUMER PRODUCTS AND SERVICES -- 3.1%
37,000 American Classic Voyages Co.* 288,125 670,625
------------ ------------
DIVERSIFIED INDUSTRIES -- 1.4%
3,600 Lynch Corp.* 284,444 298,800
------------ ------------
FINANCIAL SERVICES -- 8.0%
22,000 Capital One Financial Corp. 613,781 1,192,125
25,000 Imperial Credit Industries, Inc.* 332,075 512,500
------------ ------------
945,856 1,704,625
------------ ------------
HEALTH CARE -- 1.8%
17,000 Lab Holdings, Inc. 480,730 395,250
------------ ------------
MEDIA AND ENTERTAINMENT -- 12.6%
30,000 TCI Satellite Entertainment CL A* 226,427 206,250
12,500 Tele-Communications Liberty Media CL A* 228,212 453,125
7,552 Tele-Communications TCI-Ventures Grp A* 89,829 213,816
50,000 Valassis Communications, Inc.* 742,213 1,850,000
------------ ------------
1,286,681 2,723,191
------------ ------------
MORTGAGE BANKING -- 5.9%
8,000 Countrywide Credit Industries, Inc. 109,230 343,000
4,000 New Century Financial Corp.* 44,000 41,000
54,920 Resource Bancshares Mtg. Grp., Inc. 604,343 895,883
------------ ------------
757,573 1,279,883
------------ ------------
</TABLE>
8
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WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ------------ ------------
<C> <S> <C> <C>
REAL ESTATE AND CONSTRUCTION -- 3.5%
9,000 Forest City Enterprises, Inc. CL A $ 197,678 $ 523,125
4,250 SLH Corp.* 27,129 238,000
------------ ------------
224,807 761,125
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 17.6%
40,000 Hanover Capital Mortgage Holdings, Inc.*** 609,308 660,000
20,000 NovaStar Financial, Inc.** 300,000 332,500
25,000 Novastar Financial, Inc. Common 433,112 395,312
118,332 Redwood Trust, Inc. 2,670,108 2,411,015
------------ ------------
4,012,528 3,798,827
------------ ------------
TELECOMMUNICATIONS SERVICES -- 18.1%
50,000 360 Communication Co.* 1,010,430 1,009,375
10,000 Airtouch Communications, Inc.* 238,100 415,625
100,000 Centennial Cellular Corp. CL A* 1,214,569 2,050,000
43,500 Corecomm, Inc.* 706,878 440,438
1,500 East/West Communications, Inc. 225 0
------------ ------------
3,170,202 3,915,438
------------ ------------
Total Common Stocks 13,196,417 19,101,186
------------ ------------
<CAPTION>
FACE
AMOUNT
- -----------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 10.0%
$ 1,163,792 Norwest U.S. Government Money Market Fund 1,163,792 1,163,792
1,000,000 Federal Home Loan Bank Discount Note 3/30/98 986,494 986,279
------------ ------------
2,150,286 2,150,071
------------ ------------
Total Investments in Securities $ 15,346,703 21,251,257
------------ ------------
Other Assets Less Liabilities -- 1.5% 331,543
------------
Total Net Assets -- 100% $ 21,582,800
------------
------------
Net Asset Value Per Share $ 23.701
------------
------------
</TABLE>
*Non-income producing
**These units, purchased in a private placement, consist of one share of
preferred stock convertible to common and one stock purchase warrant and are
restricted securities, exempt from registration under the Securities Act of 1933
(the "Act"). Unless registered under the Act or exempted from registration, they
may only be sold to qualified institutional investors or certain accredited
investors.
***Each unit consists of one share of common stock and one stock purchase
warrant.
9
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WEITZ SERIES FUND, INC.
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
Lorraine Chang
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
Delmer L. Toebben
Wallace R. Weitz
OFFICERS
Wallace R. Weitz, President
Mary K. Beerling, Vice-President & Secretary
Linda L. Lawson, Vice-President
Richard F. Lawson, Vice-President
INVESTMENT ADVISER
Wallace R. Weitz & Company
DISTRIBUTOR
Weitz Securities, Inc.
CUSTODIAN
Norwest Bank Nebraska, N.A.
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Wallace R. Weitz & Company
This report has been prepared for the information of shareholders of Weitz
Series Fund, Inc. -- Hickory Portfolio. For more detailed information about the
Fund, its investment objectives, management, fees and expenses, please see a
current prospectus. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a current prospectus.
