<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
ANNUAL
REPORT
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. -- 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 March 31,
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>
Mar. 31, 1998 (3 months) 24.1% 13.9% 10.2%
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 226.7 174.4 52.3
Compound Annual
Average Return 26.7 22.4 4.3
</TABLE>
The portfolio's average annual total return for the one year ending March 31,
1998, and for the period since inception (April 1, 1993) was 71.8% and 26.7%,
respectively. The returns assume redemption at the end of each period and
reinvestment of dividends.
2
<PAGE>
The graph below shows the growth in value of a $100,000 investment in Hickory
since inception (April 1, 1993) to March 31, 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.
<TABLE>
<CAPTION>
WEITZ HICKORY PORTFOLIO
VALUE VALUE
DATE HICKORY S&P 500
- --------- --------- ---------
<S> <C> <C>
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
01/31/98 $ 271,106 $ 243,516
02/28/98 $ 285,746 $ 261,049
03/31/98 $ 326,893 $ 274,362
</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
MARCH 31, 1998 - ANNUAL REPORT
April 8, 1998
Dear Fellow Shareholder:
The first quarter of 1998 was virtually unbelievable. Hickory's total
return was 24.1%, significantly higher than the S&P 500's total return
(including reinvested dividends) of 13.9%. Over the last twelve months,
Hickory's total return was 71.8%, while the S&P 500's total return was 48.0%.
According to Lipper, the average growth mutual fund had a total return of 42.9%
over the same period.
REVIEW AND OUTLOOK
This has been an extraordinary period for Hickory. Not only have our
returns been significantly higher than I would have predicted, Hickory has also
been the recipient of an accelerating flow of new money. One year ago, Hickory's
assets stood at $12 million and three months ago they were just under $22
million. Hickory ended this quarter with assets over $44 million. A review of
our recent experience suggests that three questions would be of particular
interest: Why have Hickory's recent results been so good? What can we expect in
the future? And how will this flood of new money affect the fund's future
performance? The rest of this letter will address these questions.
Q: WHY HAVE HICKORY'S RECENT RESULTS BEEN SO GOOD?
Hickory's recent performance has been fantastic. These are the best
twelve- and three-month returns we have ever generated. And while I hope to
manage Hickory for many years in the future, it would not shock me if we never
again experience short-term results that are this good. As I have told you many
times, my investment style is to concentrate Hickory's assets on those stocks
that offer the best combination of long-term value growth and current discount
to value. I try to identify situations where the fundamentals of a company will
eventually justify a significantly higher stock price. In no way do I try to
predict when the market will react. Having an investment style that virtually
ignores timing considerations makes predicting when my stocks will rise almost
an exercise in futility. Nevertheless, in hindsight a handful of factors seem
helpful in explaining the market's increased acceptance of the value of our
companies. First, it has been a strong period in the overall stock market. This
has created a good environment for high absolute returns. Second, Hickory's
focus on domestic service companies has helped us avoid the Asian flu. As
investors have looked for companies that can continue to grow in this uncertain
economic environment, several of our investments have apparently fit the bill.
Finally, certain industry events have served to refocus investors on the
potential and value of our companies. In earlier letters I have told you about
the changing sentiment toward cable companies, driven partially by Microsoft's
investment in Comcast last year. In this quarter the biggest shift of that sort
came for the cellular industry, particularly rural
4
<PAGE>
cellular. Several transactions highlighted the value of cellular companies,
capped by Alltel's announced purchase of 360 Communications, one of our largest
holdings at the time.
Q: WHAT CAN WE EXPECT IN THE FUTURE?
All of this good news in a short period of time certainly makes future
performance more of a challenge. Last year at this time I told you that I was
having "absolutely no trouble finding attractive stocks to buy". I will not make
the same statement today. I am finding stocks to buy -- it just isn't as easy as
it was a year ago. The bottom line is that it would be foolish to expect future
returns to match Hickory's recent results. That has never been a reasonable
objective. It is reasonable, however, to expect that I will continue to manage
Hickory in the same way. I will continue to buy growing value, priced at a
discount and continue to concentrate our investments in those pockets of value I
identify, wherever they might be. And, although it is never possible to predict
what the market will do, I remain confident that this approach should continue
to lead to satisfactory, if not spectacular, long-term results.
Q: HOW DOES NEW MONEY AFFECT HICKORY?
Finally, I want to address the impact of new money flowing into Hickory.
As I see it, on balance new money has been positive for Hickory's existing
shareholders. There are two positive effects as well as two potential negatives
that I want to point out.
First, a growing asset base reduces the size of current taxable
distributions per Hickory share (more shares and the same taxable gains to
distribute means smaller distributions per share), effectively delaying
Hickory's tax consequences until later. More assets also means that unrealized
gains are a smaller percentage of the fund's total assets than they would
otherwise be, so the potential for future capital gains can be smaller.
Altogether, new money has made Hickory tax-friendlier now and in the future than
it would have otherwise been.
Second, one of the most difficult tasks of portfolio management is
figuring out when to sell a successful investment. I suspect that I have a
tendency to hold stocks beyond an optimal point. This is caused partly by a
quite rational desire to delay realizing a gain so as to put off paying taxes.
But there is also a natural human tendency to stick with the comfortable stock
that has worked. New money flows help me to overcome that tendency. As I see it,
when new money doubles the size of the fund, it is as if I involuntarily sell
half of each of our stock positions. This phenomena has allowed me to rebalance
the portfolio, buying more of the most attractive stocks while allowing the
percentage of Hickory's assets invested in other stocks to shrink. I think this
has resulted in a better portfolio with more attractive future prospects.
There are also two potential negatives that I do not believe have
significantly affected our performance to date. The first has to do with how
rapidly new money is added to the fund. The second has to do with the absolute
size of the fund. If new money is added too rapidly, it might be difficult to
immediately put this money to work, leaving the fund chronically under-invested.
While Hickory's cash position is higher than it has been historically, this is
more the result of the lack of current investment opportunities than an
inability to buy stocks. As for Hickory's absolute size, the
5
<PAGE>
fund is still quite small compared to other similar funds and to the universe of
U.S. stocks. While there is no doubt some size that is too big, I believe we are
a long way from that point.
The above discussion focused on investment issues -- client service is
another matter. The increased publicity has created the logistical challenge of
fielding many extra calls each day, answering questions about the funds, and
mailing the appropriate information at a seasonally busy time of year and 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. 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.
In summary, I remain optimistic about Hickory's long-term prospects. While
I would not expect us to experience another three or twelve months like the ones
we just had, and would not be surprised if both the market and Hickory
experienced a decline, I continue to believe that the patient, long-term Hickory
investor should be rewarded over the years to come.
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. There is no formal business to conduct, so the doors
will open at 4:00 p.m. and the investment discussion will begin 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.
One final note -- Hickory's new assets have one additional benefit.
Hickory's price is now available daily in The Wall Street Journal, and in any
other newspaper that chooses to pick up the feed. I continue to suggest that you
ignore the day-to-day market wiggles, but if you insist.........................
As always, I appreciate your support, and I welcome your questions.
Sincerely,
/S/ RICHARD LAWSON
Richard F. Lawson
Portfolio Manager
6
<PAGE>
SCHEDULE OF INVESTMENTS
7
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 1998
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS -- 87.8%
AUTO SERVICES 1.7%
70,000 Insurance Auto Auctions, Inc.* $ 770,000 $ 770,000
----------- -----------
CABLE TELEVISION -- 14.6%
30,000 Adelphia Communications Corp. CL A* 250,625 888,750
247,500 Century Communications Corp. CL A* 1,891,759 3,171,094
16,000 Comcast Corporation CL A 311,275 555,000
11,500 Comcast Corporation Special CL A 168,233 406,094
15,448 Tele-Communications, Inc. CL A* 185,444 480,337
28,000 U.S. West Media Group* 623,210 973,000
----------- -----------
3,430,546 6,474,275
----------- -----------
CONSUMER PRODUCTS AND SERVICES -- 1.9%
37,000 American Classic Voyages Co.* 288,125 851,000
----------- -----------
DIVERSIFIED INDUSTRIES -- 3.0%
12,000 Lynch Corp.* 978,993 1,308,000
----------- -----------
FINANCIAL SERVICES -- 8.7%
27,000 Capital One Financial Corp. 938,171 2,129,625
72,000 Imperial Credit Industries, Inc.* 1,264,645 1,705,500
----------- -----------
2,202,816 3,835,125
----------- -----------
HEALTH CARE -- 1.6%
30,000 Lab Holdings, Inc. 730,363 705,000
----------- -----------
INFORMATION SERVICES -- 1.9%
25,000 Data Transmission Network Corp.* 696,125 862,500
----------- -----------
MEDIA AND ENTERTAINMENT -- 7.3%
18,750 Tele-Communications Liberty Media CL A* 228,212 644,531
18,104 Tele-Communications TCI-Ventures Grp A* 140,454 317,952
55,000 Valassis Communications, Inc.* 932,412 2,255,000
----------- -----------
1,301,078 3,217,483
----------- -----------
MORTGAGE BANKING -- 9.6%
8,000 Countrywide Credit Industries, Inc. 109,230 425,000
86,500 New Century Financial Corp.* 857,125 854,187
130,000 Resource Bancshares Mtg. Grp., Inc. 1,734,818 2,063,750
60,000 Southern Pacific Funding Corp.* 893,162 922,500
----------- -----------
3,594,335 4,265,437
----------- -----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ----------- -----------
<C> <S> <C> <C>
REAL ESTATE AND CONSTRUCTION -- 2.3%
13,500 Forest City Enterprises, Inc. CL A $ 449,173 $ 761,906
8,500 SLH Corp.* 27,129 272,000
----------- -----------
476,302 1,033,906
----------- -----------
REAL ESTATE INVESTMENT TRUSTS -- 14.7%
50,000 Hanover Capital Mortgage Holdings, Inc. 757,332 812,500
120,000 NovaStar Financial, Inc. 2,180,719 2,370,000
141,315 Redwood Trust, Inc. 3,155,790 3,320,902
----------- -----------
6,093,841 6,503,402
----------- -----------
TELECOMMUNICATIONS SERVICES -- 20.5%
80,000 360 Communication Co.* 1,612,324 2,500,000
142,000 Centennial Cellular Corp. CL A* 2,026,444 3,731,945
95,000 Corecomm, Inc.* 1,416,747 1,582,349
1,500 East/West Communications, Inc.* 225 1,500
71,000 Vanguard Cellular Systems, Inc. CL A* 911,609 1,291,312
----------- -----------
5,967,349 9,107,106
----------- -----------
Total Common Stocks 26,529,873 38,933,234
----------- -----------
WARRANTS -- 0.7%
50,000 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00 16,950 156,250
20,000 NovaStar Financial, Inc., Expiring 10/30/00 29,400 135,000
----------- -----------
Total Warrants 46,350 291,250
----------- -----------
<CAPTION>
FACE
AMOUNT
- -----------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 14.2%
$3,352,732 Norwest U.S. Government Money Market Fund 3,352,732 3,352,732
1,000,000 Federal Home Loan Bank Discount Note 6/10/98 989,539 989,153
2,000,000 Federal Home Loan Mtg. Corp. Discount Note 6/12/98 1,978,400 1,977,694
----------- -----------
6,320,671 6,319,579
----------- -----------
Total Investments in Securities $32,896,894 45,544,063
----------- -----------
-----------
Other Liabilities in Excess of Other Assets -- (2.7%) (1,215,950)
-----------
Total Net Assets -- 100% $44,328,113
-----------
-----------
Net Asset Value Per Share $ 29.414
-----------
-----------
</TABLE>
* Non-income producing
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $32,896,894) $ 45,544,063
Accrued interest and dividends receivable 53,558
------------
Total assets 45,597,621
------------
Liabilities:
Due to adviser 38,112
Payable for securities purchased 1,221,836
Other expenses 9,560
------------
Total liabilities 1,269,508
------------
Net assets applicable to outstanding capital stock $ 44,328,113
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 1,507
Additional paid-in capital 30,519,443
Accumulated undistributed net realized gains 1,159,994
Net unrealized appreciation of investments (note 5) 12,647,169
------------
Net assets $ 44,328,113
------------
------------
Net asset value and redemption price per share of outstanding
capital stock (1,507,036 shares outstanding) $ 29.414
------------
------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1998
<TABLE>
<S> <C>
Investment income:
Dividends $ 176,690
Interest 90,595
-----------
Total investment income 267,285
-----------
Expenses (note 3):
Investment advisory fee 199,039
Administrative fee 48,725
Audit fees 16,067
Director's fees 1,171
Other expenses 27,743
-----------
Total expenses 292,745
-----------
Net investment (loss) (25,460)
-----------
Realized and unrealized gain on investments:
Realized gain on investments 1,995,094
Net unrealized appreciation of investments 10,256,171
-----------
Net realized and unrealized gain on investments 12,251,265
-----------
Net increase in net assets resulting from operations $12,225,805
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY 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 (loss) $ (25,460) $ 29,576
Net realized gain 1,995,094 754,913
Net unrealized appreciation 10,256,171 1,254,201
------------- -------------
Net increase in net assets resulting from operations 12,225,805 2,038,690
------------- -------------
Distributions to shareholders from:
Net investment income (54,656) (1,255)
Net realized gain (1,462,058) (528,237)
------------- -------------
Total distributions (1,516,714) (529,492)
------------- -------------
Capital share transactions (note 4):
Proceeds from sales 23,078,046 4,480,732
Payments for redemptions (3,086,396) (872,598)
Reinvestment of distributions 1,406,036 445,790
------------- -------------
Total increase from capital share transactions 21,397,686 4,053,924
------------- -------------
Total increase in net assets 32,106,777 5,563,122
------------- -------------
Net assets:
Beginning of period 12,221,336 6,658,214
------------- -------------
End of period $ 44,328,113 $ 12,221,336
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
FINANCIAL HIGHLIGHTS
The following information provides selected data for a share of the Hickory
Portfolio outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
------------------------------------------------------
1998 1997 1996+++ 1995 1994
------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $18.899 $ 15.564 $ 11.257 $ 12.227 $ 11.147
------- ---------- ---------- -------- --------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (0.007) 0.045 0.004 (0.008) (0.290)
Net gains or losses on securities
(realized and unrealized) 12.503 4.329 4.504 (0.508) 1.420
------- ---------- ---------- -------- --------
Total from investment operations 12.496 4.374 4.508 (0.516) 1.130
------- ---------- ---------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.073) (0.002) (0.136) -- 0.083
Distributions from realized gains (1.908) (1.037) (0.065) (0.454) (0.133)
------- ---------- ---------- -------- --------
Total distributions (1.981) (1.039) (0.201) (0.454) (0.050)
------- ---------- ---------- -------- --------
NET ASSET VALUE, END OF PERIOD $29.414 $ 18.899 $ 15.564 $ 11.257 $ 12.227
------- ---------- ---------- -------- --------
------- ---------- ---------- -------- --------
TOTAL RETURN 71.8% 28.2% 40.6% (4.2%) 10.1%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $44,328 $ 12,221 $ 6,658 $ 3,619 $ 2,499
Ratio of net expenses to average net
assets 1.46% 1.50%+ 1.50%+ 1.50% 1.50%
Ratio of net investment income (loss) to
average net assets (0.13%) 0.33% 0.02% (0.17%) (2.92%)
Portfolio turnover rate 29% 28% 28% 20% 29%
Average commission rate paid (per
share)++ $0.0540 $ 0.0498
</TABLE>
+ Absent voluntary waivers, the expense ratio would have been 1.56% for the
year ended March 31, 1997, and 1.61% for the year ended March 31, 1996.
++ Required by regulations issued in 1995.
+++ Calculated using average daily shares.
See accompanying notes to financial statements.
13
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY 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 non-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 Hickory Portfolio, the Value Portfolio,
the Fixed Income Portfolio, and the Government Money Market Portfolio. The
accompanying financial statements present the financial position and results
of operations of the Hickory Portfolio (the "Portfolio").
The Portfolio's investment objective is capital appreciation. The Portfolio
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 significant accounting policies
are in accordance with accounting policies generally accepted in the
investment company industry.
(2) SIGNIFICANT ACCOUNTING POLICIES
(a) VALUATION OF INVESTMENTS
Investments are carried at 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.
14
<PAGE>
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. Although
no call options were written in the year ended March 31, 1998, such
options are authorized.
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 securities are
purchased or sold (trade date). Income dividends are recorded on the
ex-dividend date. Interest, including amortization of discount and
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.
15
<PAGE>
(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.
(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 a management fee equal to 1% per annum of the Portfolio's
average daily net asset value. The Adviser has agreed to reimburse the
Portfolio up to the amount of advisory fees paid to the extent that total
expenses exceed 1.50% of the Portfolio's average daily net asset value.
Under the terms of an administration agreement, certain services are being
provided including the transfer of shares, disbursement of dividends, fund
accounting and related administrative services of the Fund for which the
Adviser is being paid a monthly fee. During the year ended March 31, 1998,
the fee was calculated at an average annual rate of .24% of the Portfolio's
average daily net assets.
Weitz Securities, Inc., as distributor, received no compensation for the
distribution of Portfolio shares.
(4) CAPITAL STOCK
The Fund is authorized to issue a total of 100 million shares of common
stock in series with a par value of $.001 per share. Ten million of these
shares have been authorized by the Board of Directors to be issued in the
series designated Hickory Portfolio. 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.
16
<PAGE>
Transactions in the capital stock of the Portfolio are summarized as follow:
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1998 1997
--------- ---------
<S> <C> <C>
Transactions in shares:
Shares issued................................................................. 917,276 245,327
Shares redeemed............................................................... (128,242) (50,285)
Distributions reinvested...................................................... 71,331 23,823
--------- ---------
Net increase................................................................ 860,365 218,865
--------- ---------
--------- ---------
</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $20,551,877 and
$5,457,685, 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 $13,121,790 and $474,621, respectively.
17
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders
Weitz Series Fund, Inc. -- Hickory Portfolio:
We have audited the accompanying statement of assets and liabilities of
the Hickory 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 each of 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 audits. 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. 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
Hickory 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
<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
BOARD OF DIRECTORS
Lorraine Chang
John W. Hancock
Richard D. Holland
Thomas R. Pansing, Jr.
Delmer L. Toebben
Wallace R. Weitz
OFFICERS
Wallace R. Weitz, President
Mary K. Beerling, Vice-President & Secretary
Linda L. Lawson, Vice-President
Richard F. Lawson, Vice-President
INVESTMENT ADVISER
Wallace R. Weitz & Company
DISTRIBUTOR
Weitz Securities, Inc.
CUSTODIAN
Norwest Bank Nebraska, N.A.
TRANSFER AGENT AND DIVIDEND PAYING AGENT
Wallace R. Weitz & Company
This report has been prepared for the information of shareholders of Weitz
Series Fund, Inc. -- Hickory Portfolio. For more detailed information about the
Fund, its investment objectives, management, fees and expenses, please see a
current prospectus. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a current prospectus.
<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>
