<PAGE>
- --------------------------------------------------------------------------------
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
QUARTERLY
REPORT
DECEMBER 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 and five year periods ended
December 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>
Dec. 31, 1998 33.0% 28.6% 4.4%
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 250.1 209.7 40.4
Compound Annual
Average Return 24.3 21.7 2.6
</TABLE>
The portfolio's average annual total return for the one and five years ended
December 31, 1998, and for the period since inception (April 1, 1993) was 33.0%,
23.8% and 24.3%, 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 December 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.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HICKORY S&P 500
<S> <C> <C>
April 1, 1993 $100,000 $100,000
Apr-93 $91,621 $97,583
May-93 $95,999 $100,184
Jun-93 $96,609 $100,476
Jul-93 $99,489 $100,071
Aug-93 $107,204 $103,859
Sep-93 $108,002 $103,062
Oct-93 $115,026 $105,192
Nov-93 $111,438 $104,193
Dec-93 $120,267 $105,452
Jan-94 $118,421 $109,034
Feb-94 $116,476 $106,076
Mar-94 $110,109 $101,457
Apr-94 $109,060 $102,759
May-94 $110,065 $104,440
Jun-94 $104,789 $101,881
Jul-94 $104,153 $105,224
Aug-94 $110,360 $109,530
Sep-94 $109,189 $106,855
Oct-94 $107,787 $109,247
Nov-94 $101,810 $105,272
Dec-94 $99,476 $106,830
Jan-95 $99,870 $109,599
Feb-95 $103,994 $113,865
Mar-95 $105,513 $117,219
Apr-95 $105,229 $120,668
May-95 $111,054 $125,480
Jun-95 $118,331 $128,392
Jul-95 $124,859 $132,647
Aug-95 $133,445 $132,978
Sep-95 $139,110 $138,586
Oct-95 $133,237 $138,091
Nov-95 $137,345 $144,146
Dec-95 $139,728 $146,922
Jan-96 $146,980 $151,917
Feb-96 $148,848 $153,328
Mar-96 $148,334 $154,805
Apr-96 $151,650 $157,084
May-96 $159,513 $161,128
Jun-96 $163,383 $161,741
Jul-96 $150,145 $154,599
Aug-96 $160,466 $157,864
Sep-96 $168,758 $166,741
Oct-96 $171,426 $171,337
Nov-96 $179,661 $184,276
Dec-96 $189,125 $180,625
Jan-97 $195,946 $191,903
Feb-97 $200,614 $193,409
Mar-97 $190,121 $185,477
Apr-97 $190,461 $196,540
May-97 $217,223 $208,497
Jun-97 $220,947 $217,832
Jul-97 $229,579 $235,160
Aug-97 $232,386 $221,995
Sep-97 $248,189 $234,145
Oct-97 $251,508 $226,334
Nov-97 $248,562 $236,802
Dec-97 $263,210 $240,866
Jan-98 $271,051 $243,527
Feb-98 $285,577 $261,080
Mar-98 $326,656 $274,439
Apr-98 $353,861 $277,199
May-98 $341,132 $272,440
Jun-98 $357,938 $283,497
Jul-98 $363,953 $280,486
Aug-98 $320,022 $239,974
Sep-98 $302,191 $255,348
Oct-98 $304,860 $276,099
Nov-98 $327,828 $292,825
Dec-98 $350,087 $309,688
</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
DECEMBER 31, 1998 - QUARTERLY REPORT
January 6, 1999
Dear Fellow Shareholder:
We ended 1998 on a positive note, gaining 15.8% during the quarter. This
brought our return for all of 1998 to 33%. Over the same periods the S&P 500
(with dividends reinvested) returned 21.3% and 28.6%, respectively. During 1998
the average growth mutual fund (according to Lipper) returned 22.9%.
REVIEW AND OUTLOOK
Viewed as a whole, one could only conclude that 1998 was a very good year
for our investments in Hickory. Not only was our total return quite high by any
reasonable historical standard, we also fared quite well relative to the
relevant market indices. This is particularly true when you realize that the
segments of the market that performed the best are not areas where Hickory's
assets are concentrated. This was once again a year when large growth stocks,
particularly technology stocks, performed extremely well. At the same time many
other stocks, particularly small company stocks, struggled. These differences
can be seen clearly in the differing results of some of the major indices. The
S&P 500, heavily influenced by large technology companies like Microsoft, gained
28.6% (dividends reinvested). The NASDAQ Composite, even more heavily influenced
by technology companies, gained 39.6%. In comparison the Dow Jones Industrial
Average, made up of 30 large companies, was only up 18.1% (dividends
reinvested). Finally, the Russell 2000, a popular index of 2000 smaller
companies, lost money with a return of -3.4% over the year. Given that Hickory
has always focused on smaller companies whose stocks offer growing value, priced
at a discount, this was certainly not an environment that made our job easy.
Despite our good performance over the entire year, 1998 held more than its
share of challenges for Hickory. Our good returns were not generated evenly --
Hickory has not yet returned to the peak it reached in mid-July. Because of this
up and down performance, if you invested in Hickory during the year, you may not
yet have a positive return on your investment. Short term volatility has always
been a part of stock market investing in general and Hickory's performance in
particular. It is for this reason that I always emphasize that Hickory should be
considered a long-term investment with a time horizon of at least three to five
years.
As to the future, I continue to believe that the prospects for our
investment approach are bright for the patient long-term investor. The recent
environment has created, and should continue to create, opportunities from which
we can benefit. The poor returns generated recently by the average small stock
raises the odds that some company has been forgotten by investors and is now
undervalued. And when the market is willing to pay a premium for momentum, as it
seems to be
4
<PAGE>
doing today, many good businesses with excellent long-term prospects, but
temporary issues, can be purchased at attractive prices. Taking advantage of
opportunities of this type has always been, and will continue to be, our focus.
AMERITRADE HOLDINGS
Sharp-eyed readers of the last two Hickory reports may have noticed the
category "Miscellaneous Securities" in the Schedule of Investments. Regulations
governing financial statements allow a fund to use such a category for certain
smaller positions which have recently been acquired. The largest position within
this category has been Ameritrade Holdings, a deep discount brokerage firm based
in Omaha. As of the end of the year we no longer own Ameritrade. This seems like
an opportune time to explain why I bought Ameritrade, why I used the
miscellaneous category, and why I sold our position so quickly.
Ameritrade has been focused recently on growing its base of customers who
trade via the Internet. This has been a classic good news, bad news situation.
The good news is that this effort has been successful. The company's customer
base, trading volumes, and customer account balances have all grown rapidly. The
bad news is that the marketing expense incurred in order to add these new
customers has been sufficiently large to wipe out current earnings.
Nevertheless, the company believes (and I agree) that if you view current
marketing spending as an investment, the return on that investment over the life
of a customer relationship is very high. In summary, Ameritrade is the kind of
situation we like to find. The company is building a good business by making
high return investments, but this good progress is not, for the moment, showing
up on the bottom line. This lack of current earnings helped to contribute to an
undervalued stock. We like management, we liked the situation, and we liked the
valuation.
I also realized that Ameritrade was not going to be easy to buy. Insiders
control much of the stock so the available float is small. I concluded that it
could take several months to build a reasonable position. I don't know if anyone
is reading Hickory quarterlies to find stock ideas, but I did not want to make
the job of buying Ameritrade at a good price any more difficult for us.
Therefore, I decided to use the miscellaneous option as a way to make life more
difficult for copycats.
This investment generated good returns for Hickory much more rapidly than
I expected. Late in December Ameritrade's stock caught Internet fever, jumping
over 50 percent in one day when the company preannounced good quarterly results.
At these higher prices I felt that the stock was no longer a bargain, and I sold
our entire position over the course of a week. I bought Ameritrade as a value
stock and sold it as an Internet stock, doubling our money in less than six
months.
5
<PAGE>
In summary, I will continue to manage Hickory as I always have, focusing
on growing value and trying to maximize LONG-TERM results. At times we will be
out of step with the market, but I remain comfortable that our approach is sound
and our opportunities for success are many.
Thank you for your continued support.
Sincerely,
/s/ RICHARD F. LAWSON
Richard F. Lawson
Portfolio Manager
P.S. We have scheduled our annual shareholder information meeting at 4:30 p.m.
on May 26 at the Omaha Marriott. Please plan to join us.
6
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
YEAR 2000 UPDATE
Wallace R. Weitz & Company ("Weitz"), investment adviser and administrator
for the Weitz Funds has developed a plan to address whether its systems will
operate correctly after December 31, 1999. The plan has been reviewed by Weitz's
management and by the Board of Directors of Weitz Series Fund, Inc. and Weitz
Partners, Inc. Weitz has assigned one employee to take the lead on Year 2000
issues and is also working with a consulting firm to assist in the remediation
of hardware and software systems. Regular reports are made to the Board of
Directors. Weitz has agreed to commit the resources necessary to address the
Year 2000 issue.
Weitz's local area network is comprised of a single file server and
individual workstations with desktop machines, related peripherals and software
developed by third parties. Such software is a combination of off-the-shelf
applications and accounting or industry specific applications developed by third
party vendors. Weitz has no internally developed or modified software
applications. Due to the recent growth of the Weitz Funds, Weitz has replaced or
expanded the majority of its network. These changes have all been effected with
Year 2000 compliance issues in mind. Weitz has been in communication with
critical third party service providers who have provided assurances to us that
they are either Year 2000 compliant or are in the final stages of testing. As
Weitz investigates certain possible changes in third party service providers, we
intend to make Year 2000 inquiries and obtain assurances about the Year 2000
readiness of such providers.
With respect to the companies in which the Weitz Funds invest, Weitz intends
to review the disclosure included in regular filings with the Securities and
Exchange Commission for certain of those companies in which the funds have a
significant investment. In addition, Weitz receives and will continue to receive
Y2K readiness information from securities analysts and from certain of the
issuing companies themselves. Such information is reviewed as it becomes
available. Weitz and the Weitz Funds have no reason to believe that these steps
will not be sufficient to avoid any material adverse impact on the Funds,
although there can be no assurance of this.
7
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 85.5%
AUTO SERVICES -- 2.5%
1,125,000 Insurance Auto Auctions, Inc.* $ 14,761,110 $ 13,359,375
------------- -------------
CABLE TELEVISION -- 6.5%
181,900 Adelphia Communications Corp. CL A* 4,350,681 8,321,925
838,000 Century Communications Corp. CL A* 13,057,323 26,580,354
------------- -------------
17,408,004 34,902,279
------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 4.5%
1,364,400 American Classic Voyages Co.* 19,196,717 24,047,550
------------- -------------
DIVERSIFIED INDUSTRIES -- 0.6%
47,900 Lynch Corp.* 4,382,793 3,400,900
------------- -------------
FINANCIAL SERVICES -- 13.9%
630,700 Allied Capital Corp. 10,662,241 10,918,994
129,000 Capital One Financial Corp. 9,274,530 14,835,000
4,983,600 Imperial Credit Industries, Inc.* 76,714,986 41,737,650
1,742,000 United Panam Financial Corp.* 17,602,599 7,294,625
------------- -------------
114,254,356 74,786,269
------------- -------------
HEALTH CARE -- 1.1%
345,900 Lab Holdings, Inc. 6,893,165 6,053,250
------------- -------------
INFORMATION SERVICES -- 5.3%
995,800 Data Transmission Network Corp.* 29,703,036 28,753,725
------------- -------------
MEDIA AND ENTERTAINMENT -- 12.6%
1,285,000 Tele-Communications TCI Ventures Group A* 23,358,081 30,277,813
732,700 Valassis Communications, Inc.* 25,565,988 37,825,637
------------- -------------
48,924,069 68,103,450
------------- -------------
</TABLE>
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>
MORTGAGE BANKING -- 6.5%
777,100 New Century Financial Corp.* $ 7,757,301 $ 10,393,713
1,492,500 Resource Bancshares Mtg. Grp., Inc. 24,329,779 24,719,531
------------- -------------
32,087,080 35,113,244
------------- -------------
OIL AND GAS DRILLING -- 1.9%
797,000 Noble Drilling Corp.* 10,031,063 10,311,188
------------- -------------
REAL ESTATE AND CONSTRUCTION -- 0.7%
147,200 Forest City Enterprises, Inc. CL A 3,882,144 3,864,000
------------- -------------
REAL ESTATE INVESTMENT TRUSTS -- 6.7%
1,894,150 Dynex Capital, Inc. 12,912,968 8,760,444
879,332 Fortress Investment Corp. 16,605,899 14,948,644
222,600 Hanover Capital Mortgage Holdings, Inc. 3,500,940 973,875
25,000 Healthcare Financial Partners Units** 2,500,000 2,500,000
615,800 Impac Mortgage Holdings, Inc. 9,041,432 2,809,587
520,000 NovaStar Financial, Inc. 9,356,282 3,217,500
220,000 Redwood Trust, Inc. 4,964,257 3,080,000
------------- -------------
58,881,778 36,290,050
------------- -------------
RETAIL DISCOUNT -- 1.3%
340,000 Consolidated Stores Corp.* 6,834,456 6,863,750
------------- -------------
TELECOMMUNICATIONS SERVICES -- 20.1%
112,000 Cellular Communications of Puerto Rico* 844,374 2,072,000
1,420,200 Centennial Cellular Corp. CL A* 50,566,634 58,228,200
1,500 East/West Communications, Inc.* 225 2,438
1,064,600 Telephone and Data Systems, Inc. 42,628,141 47,840,462
------------- -------------
94,039,374 108,143,100
------------- -------------
MISCELLANEOUS SECURITIES -- 1.3%
Total Common Stocks 4,211,325 6,786,175
------------- -------------
465,490,470 460,778,305
------------- -------------
</TABLE>
9
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ----------- ------------- -------------
<C> <S> <C> <C>
WARRANTS -- 0.0%
424,300 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00 $ 1,248,753 $ 53,037
260,000 NovaStar Financial, Inc., Expiring 2/03/01 1,688,775 16,250
------------- -------------
Total Warrants 2,937,528 69,287
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
- ------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 14.8%
$ 39,749,996 Norwest U.S. Government Money Market Fund 39,749,996 39,749,996
20,000,000 Federal Farm Credit Bank 5.54% 1/04/99 20,000,000 20,000,000
20,000,000 Fannie Mae Discount Note 1/14/99 19,961,289 19,971,720
------------- -------------
79,711,285 79,721,716
------------- -------------
Total Investments in Securities $ 548,139,283 540,569,308
------------- -------------
-------------
Other Liabilities in Excess of Other Assets -- (0.3%) (1,784,912)
-------------
Total Net Assets -- 100% $ 538,784,396
-------------
-------------
Net Asset Value Per Share $ 30.981
-------------
-------------
</TABLE>
*Non-income producing
** Each unit, which is restricted as to sale, consists of five shares of common
stock and one stock purchase warrant. The company distributed an additional
warrant per unit to unitholders during 1998. The warrants currently have no
value or cost assigned to them.
10
<PAGE>
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<PAGE>
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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 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.
