<PAGE>
WEITZ SERIES FUND, INC.
HICKORY PORTFOLIO
A N N U A L
R E P O R T
MARCH 31, 1999
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
March 31, 1999, 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, 1999 (3 months) 9.6% 5.0% 4.6%
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 283.5 225.1 58.4
Compound Annual
Average Return 25.1 21.7 3.4
</TABLE>
The portfolio's average annual total return for the one and five years ended
March 31, 1999, and for the period since inception (April 1, 1993) was 17.4%,
28.4% and 25.1%, respectively. The returns assume redemption at the end of each
period and reinvestment of dividends.
2
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
The chart below depicts the change in the value of a $25,000 investment for the
period since inception of the Hickory Portfolio (April 1, 1993) through March
31, 1999, as compared with the growth of the Standard & Poor's 500 Index during
the same period. The Standard & Poor's Index is an unmanaged index consisting of
500 companies generally representative of the market for stocks of large-size
U.S. companies. The information assumes reinvestment of dividends and capital
gains distributions. A $25,000 investment in the Hickory Portfolio on April 1,
1993, would have been valued at $95,887 on March 31, 1999.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HICKORY PORTFOLIO S&P 500
<S> <C> <C>
1-Apr-93 $25,000 $25,000
Apr-93 $22,905 $24,396
May-93 $24,000 $25,046
Jun-93 $24,152 $25,119
Jul-93 $24,872 $25,018
Aug-93 $26,801 $25,965
Sep-93 $27,001 $25,765
Oct-93 $28,757 $26,298
Nov-93 $27,860 $26,048
Dec-93 $30,067 $26,363
Jan-94 $29,605 $27,258
Feb-94 $29,119 $26,519
Mar-94 $27,527 $25,364
Apr-94 $27,265 $25,690
May-94 $27,516 $26,110
Jun-94 $26,197 $25,470
Jul-94 $26,038 $26,306
Aug-94 $27,590 $27,382
Sep-94 $27,297 $26,714
Oct-94 $26,947 $27,312
Nov-94 $25,452 $26,318
Dec-94 $24,869 $26,708
Jan-95 $24,968 $27,400
Feb-95 $25,999 $28,466
Mar-95 $26,378 $29,305
Apr-95 $26,307 $30,167
May-95 $27,764 $31,370
Jun-95 $29,583 $32,098
Jul-95 $31,215 $33,162
Aug-95 $33,361 $33,244
Sep-95 $34,777 $34,647
Oct-95 $33,309 $34,523
Nov-95 $34,336 $36,037
Dec-95 $34,932 $36,731
Jan-96 $36,745 $37,979
Feb-96 $37,212 $38,332
Mar-96 $37,083 $38,701
Apr-96 $37,913 $39,271
May-96 $39,878 $40,282
Jun-96 $40,846 $40,435
Jul-96 $37,536 $38,650
Aug-96 $40,117 $39,466
Sep-96 $42,189 $41,685
Oct-96 $42,857 $42,834
Nov-96 $44,915 $46,069
Dec-96 $47,281 $45,156
Jan-97 $48,987 $47,976
Feb-97 $50,153 $48,352
Mar-97 $47,530 $46,369
Apr-97 $47,615 $49,135
May-97 $54,306 $52,124
Jun-97 $55,237 $54,458
Jul-97 $57,395 $58,790
Aug-97 $58,096 $55,499
Sep-97 $62,047 $58,536
Oct-97 $62,877 $56,584
Nov-97 $62,141 $59,201
Dec-97 $65,803 $60,216
Jan-98 $67,763 $60,882
Feb-98 $71,394 $65,270
Mar-98 $81,664 $68,610
Apr-98 $88,465 $69,300
May-98 $85,283 $68,110
Jun-98 $89,485 $70,874
Jul-98 $90,988 $70,121
Aug-98 $80,006 $59,993
Sep-98 $75,548 $63,837
Oct-98 $76,215 $69,025
Nov-98 $81,957 $73,206
Dec-98 $87,522 $77,422
Jan-99 $90,666 $80,658
Feb-99 $91,426 $78,152
Mar-99 $95,887 $81,278
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEPTION
1-YEAR 5-YEARS (APRIL 1, 1993)
----------- ----------- -------------------
<S> <C> <C> <C>
HICKORY PORTFOLIO.................................. 17.4% 28.4% 25.1%
Standard & Poor's 500 Index........................ 18.5% 26.2% 21.7%
</TABLE>
This information represents past performance of the Hickory 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.
3
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
MARCH 31, 1999 - ANNUAL REPORT
April 2, 1999
Dear Fellow Shareholder:
The first quarter of 1999 was a good one for our investments. Hickory's
total return was 9.6%, significantly higher than the S&P 500's total return
(including reinvested dividends) of 5.0%. Over the last twelve months, Hickory's
total return was 17.4%, while the S&P 500's total return was 18.5%. According to
Lipper, the average growth mutual fund had a total return of 13.6% over the same
twelve month period.
REVIEW AND OUTLOOK
In the first quarter the stock market experienced a continuation of its
recent trends -- large cap stocks did well (particularly the stocks of
technology, internet, and other growth companies), while most other small and
mid cap stocks continued to struggle. This trend is illustrated by the dismal
recent results of the Russell 2000, the most commonly used index of small
companies. Including reinvested dividends, the Russell 2000 had a total return
of -5.4% in the first quarter, and -16.2% over the past year.
Given this environment, I think we should be quite satisfied with
Hickory's performance thus far in 1999. Our investment style -- buying growing
value, priced at a discount -- has led us away from the kinds of stocks that
have tended to do well recently. This is particularly true since we often find
these opportunities among smaller, less well known companies. More importantly,
I remain optimistic about the future prospects for our investments. This
optimism is based both on my analysis of overall market trends and on the
specific investments I am finding for Hickory. The rest of this letter will
discuss both of these points.
When evaluating a potential stock investment, I look for evidence that the
stock is cheap and that it is out of favor. When these disciplines are applied
to the universe of small capitalization stocks, I believe one can make a
compelling case for focusing equity investments on smaller cap stocks. First,
relative to the overall market, small cap stocks look very inexpensive. One
small cap proxy often used by market analysts is the T. Rowe Price New Horizons
Fund, one of the oldest small cap mutual funds. The average price to earnings
ratio ("P/E") of the New Horizons Fund relative to the S&P 500 has been
published for almost 40 years, and has mostly ranged between 1.0 and 2.0. In
other words, the P/E ratio of the typical New Horizons stock has tended to be
somewhere between the P/E of the S&P 500 and twice the P/E of the S&P 500. This
comparative statistic recently hit an all-time low of 0.74, fully 16 percent
lower than the previous low of 0.94. This suggests that small cap stocks are as
inexpensive as they have been relative to the overall market in almost 40 years.
4
<PAGE>
Anecdotal evidence that small cap stocks are out of favor is also
abundant. A major business magazine recently ran a story suggesting that small
cap stocks may NEVER return to favor. Many small cap mutual funds are
experiencing net redemptions as investors move money to sectors that are
generating higher returns. Academics are even changing their minds about the
relative attractiveness of small cap stocks. A few years ago it was generally
accepted that small cap stocks generated higher returns over long periods of
time. Because of recent underperformance, the superiority of small cap stocks is
now being questioned. However, this change of heart seems particularly ironic --
small cap stocks have often had periods of underperformance in the past, and
have always recovered. To give up now seems sort of like assuming winter will
never end because there is still snow on the ground. Given all of this negative
thinking about the sector, it seems that the environment may be right for small
cap stocks to begin outperforming relative to the overall stock market.
However, this evidence that small cap stocks are RELATIVELY inexpensive
should not give you much comfort. As I have tried to make clear many times in
previous letters, I try to invest in companies that have good long-term
prospects and are ABSOLUTELY cheap. Small cap stocks will not be an attractive
long-term investment if they are merely inexpensive relative to grossly
overvalued large cap stocks. Nevertheless, I am comfortable that many stocks of
attractive companies are undervalued, and I continue to identify and own stocks
that meet my criteria. Some examples should help illustrate this point.
Consolidated Stores is a relatively new investment for Hickory.
Consolidated is a retailer whose main line of business is close-out merchandise,
operating under the Big Lots and MacFrugal's brand names. I believe close-out
retailing is business where scale is a significant advantage, and, with the
purchase of MacFrugal's last year, Consolidated is by far the largest company in
the business. The company buys excess inventory from a wide variety of
manufacturers, selling this merchandise from a network of over 1000 stores
across the country at deeply discounted prices. Historically, the company has
performed quite well, generating rapid growth in sales and earnings per share.
This past year was a disappointment, as operational issues have hindered
results. However, I believe these are indeed short term issues and have been
more than fully reflected in the stock price, which was as high as $50 per share
at the end of 1997 and dropped into the teens this past winter. While the stock
has recovered somewhat from its low, I continue to think that it is attractive
relative to its earnings potential, growth rate, and ability to generate free
cashflow.
American Classic Voyages operates two cruise lines. Delta Queen Steamboats
travel up and down the Mississippi River and related waterways and American
Hawaii Cruises is the only cruise operator in the Hawaiian Islands. Neither
business faces direct competition. I believe American Classic has an excellent
position in an attractive industry. Cruising is business that has shown good
growth in the past because it offers an attractive leisure experience to a
growing segment of the population -- upscale seniors. Because American Classic
has quasi-monopolies it is well positioned to take advantage of this growth. The
company is currently pursuing an exclusive opportunity to build a series of new
ships for the Hawaiian market. If successful, this effort will increase the
company's passenger capacity, revenue, and profit potential many times over the
next several
5
<PAGE>
years. American Classic was a particularly attractive stock last fall when
Hickory's position was purchased because we were, in effect, paying a fair price
for the existing business and getting the new growth opportunities for free.
Although the stock has risen somewhat since then, I believe the stock is just as
attractive today because of the progress the company has continued to make.
Harrah's Entertainment operates casinos and related hotels. The company's
strategy has been to operate attractive properties in as many markets as
possible. Instead of trying to build the newest and fanciest casinos, Harrah's
offers great service and uses sophisticated marketing programs to attract
customers. While I do not particularly enjoy gambling myself (I get quite enough
excitement in the stock market, where I find the odds to be much more in my
favor), I have long felt that a properly run casino should be an excellent
business. Lately the entire industry has been out of favor with Wall Street
because investors fear that too many new casinos have recently been built. In
this environment Harrah's strategy seems particularly appropriate, yet its stock
has suffered just as much as others in the industry. The stock is inexpensive
relative to current earnings and looks particularly attractive relative to the
free cashflow that is expected beginning next year.
In summary, I am quite optimistic about Hickory's prospects. I am finding
attractive companies to buy at attractive prices. The difficult environment for
small and mid cap value investing that we have been experiencing has left these
stocks priced quite cheaply compared to their larger cousins. As always, I
cannot predict when the environment will change, but I remain comfortable that
eventual change is inevitable.
SHAREHOLDER INFORMATION MEETING -- MAY 26
Please plan to join us on WEDNESDAY, MAY 26 for our Shareholder
Information Meeting at 4:30 p.m. AT THE OMAHA MARRIOTT. There will be no formal
business to conduct, so we will be able to spend the entire time discussing
investments. Because of the number of new shareholders, we do not know how many
people to expect, so PLEASE send back the reply card which came with your
newsletter or call our receptionist to let us know you are coming (no need to do
both, or we'll have a very large, half-empty room).
As always, I appreciate your support.
Sincerely,
/s/ Richard F. Lawson
Richard F. Lawson
Portfolio Manager
6
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SHAREHOLDER VOTE
On October 6, 1998, a special meeting of the shareholders of Weitz Series
Fund, Inc. (The "Fund"), consisting of the Hickory Portfolio, Value Portfolio,
Fixed Income Portfolio, and the Government Money Market Portfolio was held at
which the following proposal was approved by the shareholders:
PROPOSAL 1: AMENDMENT OF ARTICLE 5 OF THE FUND'S ARTICLES OF INCORPORATION
<TABLE>
<CAPTION>
FOR AGAINST/WITHHELD ABSTAIN/BROKER NON-VOTES
- ------------ ---------------- ------------------------
<S> <C> <C>
28,480,468 1,035,425 536,225
</TABLE>
----------------------------------------
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, two
application servers, 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
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- ------------ ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 86.6%
AUTO SERVICES -- 2.2%
1,181,000 Insurance Auto Auctions, Inc.* $ 15,403,823 $ 14,319,625
------------- -------------
CABLE TELEVISION -- 7.9%
181,900 Adelphia Communications Corp. CL A* 4,350,681 11,459,700
838,000 Century Communications Corp. CL A* 13,057,323 38,914,625
------------- -------------
17,408,004 50,374,325
------------- -------------
CONSUMER PRODUCTS AND SERVICES -- 4.5%
1,364,400 American Classic Voyages Co.* 19,196,717 22,171,500
173,200 Premier Parks, Inc.* 2,726,637 6,451,700
------------- -------------
21,923,354 28,623,200
------------- -------------
DIVERSIFIED INDUSTRIES -- 0.5%
49,900 Lynch Corp.* 4,537,673 3,517,950
------------- -------------
FINANCIAL GUARANTEE INSURANCE -- 3.9%
540,000 The PMI Group, Inc. 23,132,333 25,042,500
------------- -------------
FINANCIAL SERVICES -- 14.9%
845,700 Allied Capital Corp. 14,509,567 15,539,738
260 Berkshire Hathaway, Inc. CL A* 19,238,600 18,564,000
129,000 Capital One Financial Corp. 9,274,530 19,479,000
4,983,600 Imperial Credit Industries, Inc.* 76,714,986 36,442,575
1,226,000 United Panam Financial Corp.* 11,284,534 4,904,000
------------- -------------
131,022,217 94,929,313
------------- -------------
HEALTH CARE -- 1.0%
393,900 Lab Holdings, Inc. 7,710,952 6,548,588
------------- -------------
INFORMATION SERVICES -- 4.7%
1,259,000 Data Transmission Network Corp.* 35,565,066 30,058,625
------------- -------------
LODGING AND GAMING -- 3.2%
1,063,500 Harrah's Entertainment, Inc.* 15,692,726 20,272,969
------------- -------------
MEDIA AND ENTERTAINMENT -- 11.4%
668,200 AT&T Corp -- Liberty Media Group A* 23,358,081 35,164,025
732,700 Valassis Communications, Inc.* 25,565,988 37,917,225
------------- -------------
48,924,069 73,081,250
------------- -------------
</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>
MORTGAGE BANKING -- 4.5%
777,100 New Century Financial Corp.* $ 7,757,301 $ 9,228,062
1,492,500 Resource Bancshares Mtg. Grp., Inc. 22,846,411 19,215,938
------------- -------------
30,603,712 28,444,000
------------- -------------
OIL AND GAS DRILLING -- 2.7%
995,000 Noble Drilling Corp.* 12,525,538 17,225,937
------------- -------------
REAL ESTATE AND CONSTRUCTION -- 0.6%
147,200 Forest City Enterprises, Inc. CL A 3,882,144 3,560,400
------------- -------------
REAL ESTATE INVESTMENT TRUSTS -- 5.5%
2,008,850 Dynex Capital, Inc. 13,469,492 6,654,316
879,332 Fortress Investment Corp. 16,612,841 14,948,644
222,600 Hanover Capital Mortgage Holdings, Inc. 3,555,031 987,787
25,000 Healthcare Financial Partners Units** 2,500,000 2,500,000
615,800 Impac Mortgage Holdings, Inc. 9,121,609 3,079,000
520,000 NovaStar Financial, Inc. 9,356,282 3,185,000
220,000 Redwood Trust, Inc. 4,964,258 3,520,000
------------- -------------
59,579,513 34,874,747
------------- -------------
RETAIL DISCOUNT -- 4.6%
961,500 Consolidated Stores Corp.* 18,925,844 29,145,469
------------- -------------
TELECOMMUNICATIONS SERVICES -- 12.8%
112,000 Cellular Communications of Puerto Rico* 844,374 3,024,000
400,844 Centennial Cellular Corp. CL A* 4,773,372 18,939,879
1,500 East/West Communications, Inc.* 225 2,625
1,064,600 Telephone and Data Systems, Inc. 42,628,141 60,016,825
------------- -------------
48,246,112 81,983,329
------------- -------------
MISCELLANEOUS SECURITIES -- 1.7% 10,067,799 11,370,212
------------- -------------
Total Common Stocks 505,150,879 553,372,439
------------- -------------
WARRANTS -- 0.0%
424,300 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00 1,248,753 66,318
260,000 NovaStar Financial, Inc., Expiring 2/03/01 1,688,775 97,500
------------- -------------
Total Warrants 2,937,528 163,818
------------- -------------
CONVERTIBLE PREFERRED STOCKS -- 1.0%
871,429 NovaStar Financial, Inc. 7% Pfd. Class B Cumulative 6,100,003 6,100,003
------------- -------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE COST VALUE
AMOUNT ------------- -------------
- ------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 12.4%
$14,411,545 Norwest U.S. Government Money Market Fund $ 14,411,545 $ 14,411,545
15,000,000 Fannie Mae Discount Note 4/01/99 15,000,000 15,000,000
50,000,000 Freddie Mac Discount Note 4/15/99 49,908,222 49,906,850
------------- -------------
79,319,767 79,318,395
------------- -------------
Total Investments in Securities $ 593,508,177 638,954,655
------------- -------------
-------------
Other Liabilities in Excess of Other Assets -- (0.0%) (192,078)
-------------
Total Net Assets -- 100% $ 638,762,577
-------------
-------------
Net Asset Value Per Share $ 33.942
-------------
-------------
</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.
See accompanying notes to financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $593,508,177) $638,954,655
Cash 992,672
Accrued interest and dividends receivable 574,288
Receivable for securities sold 182,000
------------
Total assets 640,703,615
------------
Liabilities:
Due to adviser 615,745
Payable for securities purchased 1,129,433
Other expenses 195,860
------------
Total liabilities 1,941,038
------------
Net assets applicable to outstanding capital stock $638,762,577
------------
------------
Net assets represented by:
Capital stock outstanding, at par (note 4) 18,819
Additional paid-in capital 582,385,299
Accumulated undistributed net investment income 227,631
Accumulated undistributed net realized gains 10,684,350
Net unrealized appreciation of investments (note 5) 45,446,478
------------
Total representing net assets applicable to shares outstanding $638,762,577
------------
------------
Net asset value per share of outstanding capital stock
(18,819,430 shares outstanding) $ 33.942
------------
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1999
<TABLE>
<S> <C>
Investment income:
Dividends $ 3,161,441
Interest 3,899,318
-----------
Total investment income 7,060,759
-----------
Expenses (note 3):
Investment advisory fee 3,943,194
Administrative fee 714,715
Directors fees 6,373
Other expenses 494,387
-----------
Total expenses 5,158,669
-----------
Net investment income 1,902,090
-----------
Realized and unrealized gain on investments:
Net realized gain on investments 10,684,350
Net unrealized appreciation of investments 32,799,309
-----------
Net realized and unrealized gain on investments 43,483,659
-----------
Net increase in net assets resulting from operations $45,385,749
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1999 1998
-------------- -------------
<S> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) $ 1,902,090 $ (25,460)
Net realized gain 10,684,350 1,995,094
Net unrealized appreciation 32,799,309 10,256,171
-------------- -------------
Net increase in net assets resulting from operations 45,385,749 12,225,805
-------------- -------------
Distributions to shareholders from:
Net investment income (1,674,459) (54,656)
Net realized gains (1,159,994) (1,462,058)
-------------- -------------
Total distributions (2,834,453) (1,516,714)
-------------- -------------
Capital share transactions (note 4):
Proceeds from sales 744,508,477 23,078,046
Payments for redemptions (195,010,810) (3,086,396)
Reinvestment of distributions 2,385,501 1,406,036
-------------- -------------
Total increase from capital share transactions 551,883,168 21,397,686
-------------- -------------
Total increase in net assets 594,434,464 32,106,777
-------------- -------------
Net assets:
Beginning of period 44,328,113 12,221,336
-------------- -------------
End of period $ 638,762,577 $ 44,328,113
-------------- -------------
-------------- -------------
</TABLE>
See accompanying notes to financial statements.
13
<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,
-------------------------------------------------------
1999 1998 1997 1996++ 1995
--------- ------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 29.41 $ 18.90 $ 15.56 $ 11.26 $ 12.23
--------- ------- ---------- ---------- --------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.11 (0.01) 0.05 -- (0.01)
Net gains or losses on securities
(realized and unrealized) 4.96 12.50 4.33 4.50 (0.51)
--------- ------- ---------- ---------- --------
Total from investment operations 5.07 12.49 4.38 4.50 (0.52)
--------- ------- ---------- ---------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.10) (0.07) -- (0.14) --
Distributions from realized gains (0.44) (1.91) (1.04) (0.06) (0.45)
--------- ------- ---------- ---------- --------
Total distributions (0.54) (1.98) (1.04) (0.20) (0.45)
--------- ------- ---------- ---------- --------
NET ASSET VALUE, END OF PERIOD $ 33.94 $ 29.41 $ 18.90 $ 15.56 $ 11.26
--------- ------- ---------- ---------- --------
--------- ------- ---------- ---------- --------
TOTAL RETURN 17.4% 71.8% 28.2% 40.6% (4.2%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $ 638,763 $44,328 $ 12,221 $ 6,658 $ 3,619
Ratio of net expenses to average net
assets 1.30% 1.46% 1.50%+ 1.50%+ 1.50%
Ratio of net investment income (loss) to
average net assets 0.48% (0.13%) 0.33% 0.02% (0.17%)
Portfolio turnover rate 40% 29% 28% 28% 20%
</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.
++ Calculated using average daily shares.
See accompanying notes to financial statements.
14
<PAGE>
WEITZ SERIES FUND, INC. -- HICKORY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(1) ORGANIZATION
Weitz Series Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as an open-end management investment company issuing
shares in series, each series representing a distinct portfolio with its own
investment objectives and policies. At March 31, 1999, 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.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in accordance with
accounting policies generally accepted in the investment company industry.
(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 accordance with procedures approved by
the Fund's Board of Directors.
15
<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, 1999, 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.
16
<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 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, 1999,
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 the
distribution of Portfolio shares.
(4) CAPITAL STOCK
The Fund is authorized to issue a total of five billion shares of common
stock in series with a par value of $.001 per share. Seventy-five 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.
17
<PAGE>
Transactions in the capital stock of the Portfolio are summarized as follow:
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1999 1998
------------ ---------
<S> <C> <C>
Transactions in shares:
Shares issued.............................................................. 23,933,433 917,276
Shares redeemed............................................................ (6,698,624) (128,242)
Reinvested dividends....................................................... 77,585 71,331
------------ ---------
Net increase............................................................. 17,312,394 860,365
------------ ---------
------------ ---------
</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Portfolio, other than short-term securities, aggregated $607,772,639 and
$130,260,424, respectively. The cost of investments for Federal income tax
purposes is $593,810,209. At March 31, 1999, the aggregate gross unrealized
appreciation and depreciation, based on cost for Federal income tax
purposes, were $135,967,102 and $90,822,656, respectively.
(6) AFFILIATED ISSUERS
Affiliated issuers, as defined under the Investment Company Act of 1940, are
those in which the Fund's holdings of an issuer represent 5% or more of the
outstanding voting securities of the issuer. A summary of the Fund's
holdings in the securities of such issuers is set forth below:
<TABLE>
<CAPTION>
NUMBER OF
SHARES HELD VALUE DIVIDEND REALIZED
NAME OF ISSUER MARCH 31, 1999 MARCH 31, 1999 INCOME GAINS/LOSSES
- --------------------------------------------- -------------- -------------- ---------- ------------
<S> <C> <C> <C> <C>
American Classic Voyages Co.................. 1,364,400 $ 22,171,500 $ 0 $ 562,847
Data Transmission Network Corp............... 1,259,000 30,058,625 0 0
Imperial Credit Industries, Inc.............. 4,983,600 36,442,575 0 0
Insurance Auto Auctions, Inc................. 1,181,000 14,319,625 0 0
Lab Holdings, Inc............................ 393,900 6,548,588 316,110 0
New Century Financial Corp................... 777,100 9,228,062 0 0
NovaStar Financial, Inc...................... 520,000 3,185,000 0 0
NovaStar Financial, Inc., Warrants Expiring
2/03/01.................................... 260,000 97,500 0 0
NovaStar Financial, Inc. 7% Pfd. Class B
Cumulative................................. 871,429 6,100,003 0 0
Resource Bancshares Mtg. Grp., Inc........... 1,492,500 19,215,938 402,090 (2,187,129)
United Panam Financial Corp.................. 1,226,000 4,904,000 0 (4,686,751)
-------------- ---------- ------------
Totals $152,271,416 $ 718,200 $ (6,311,033)
-------------- ---------- ------------
-------------- ---------- ------------
</TABLE>
18
<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
Weitz Series Fund, Inc., -- Hickory Portfolio, including the schedule of
investments in securities, as of March 31, 1999, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the three 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, 1999, by correspondence with the custodian and broker. 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
Weitz Series Fund, Inc. -- Hickory Portfolio as of March 31, 1999, 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 15, 1999
19
<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.
<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-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 593,508,177
<INVESTMENTS-AT-VALUE> 638,954,655
<RECEIVABLES> 756,288
<ASSETS-OTHER> 992,672
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 640,703,615
<PAYABLE-FOR-SECURITIES> 1,129,433
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 811,605
<TOTAL-LIABILITIES> 1,941,038
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 582,404,118
<SHARES-COMMON-STOCK> 18,819,430
<SHARES-COMMON-PRIOR> 1,507,036
<ACCUMULATED-NII-CURRENT> 227,631
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,684,350
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 45,446,478
<NET-ASSETS> 638,762,577
<DIVIDEND-INCOME> 3,161,441
<INTEREST-INCOME> 3,899,318
<OTHER-INCOME> 0
<EXPENSES-NET> (5,158,669)
<NET-INVESTMENT-INCOME> 1,902,090
<REALIZED-GAINS-CURRENT> 10,684,350
<APPREC-INCREASE-CURRENT> 32,799,309
<NET-CHANGE-FROM-OPS> 45,385,749
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,674,459)
<DISTRIBUTIONS-OF-GAINS> (1,159,994)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,933,433
<NUMBER-OF-SHARES-REDEEMED> (6,698,624)
<SHARES-REINVESTED> 77,585
<NET-CHANGE-IN-ASSETS> 17,312,394
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,159,994
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,943,194
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,158,669
<AVERAGE-NET-ASSETS> 394,961,290
<PER-SHARE-NAV-BEGIN> 29.41
<PER-SHARE-NII> 0.11
<PER-SHARE-GAIN-APPREC> 4.96
<PER-SHARE-DIVIDEND> (0.10)
<PER-SHARE-DISTRIBUTIONS> (0.44)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 33.94
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
