<PAGE>
WEITZ SERIES FUND, INC.
- --------------------------------------------------------------------------------
FIXED INCOME FUND
GOVERNMENT MONEY MARKET
FUND
QUARTERLY
REPORT
DECEMBER 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
www.weitzfunds.com
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(This page has been left blank intentionally.)
2
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TABLE OF CONTENTS
<TABLE>
<S> <C>
FIXED INCOME FUND
Performance Since Inception......................... 4
Shareholder Letter.................................. 5
Schedule of Investments............................. 7
GOVERNMENT MONEY MARKET FUND
Shareholder Letter.................................. 10
Schedule of Investments............................. 11
</TABLE>
3
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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
PERFORMANCE SINCE INCEPTION
A long-term perspective on the Fixed Income Fund's performance is shown below.
The table shows how an investment of $10,000 in the Fixed Income Fund at its
inception would have grown over the years (after deducting all fees and expenses
and assuming reinvestment of all dividends). The table also sets forth average
annual total return data for the Fixed Income Fund for the one, five, and ten
year periods ended December 31, 1999.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL ANNUAL
$10,000 CAPITAL GAIN REINVESTED VALUE OF RATE OF
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES RETURN
------------ ---------- ------------- --------- ------ ------
<S> <C> <C> <C> <C> <C>
Dec. 23, 1988 $ 10,000 -- -- $ 10,000 --
Dec. 31, 1988 9,939 -- 68 10,007 --
Dec. 31, 1989 10,020 -- 900 10,920 9.1%
Dec. 31, 1990 10,232 12 1,661 11,905 9.0
Dec. 31, 1991 10,625 13 2,597 13,235 11.4
Dec. 31, 1992 10,557 13 3,396 13,966 5.5
Dec. 31, 1993 10,820 14 4,258 15,092 8.1
Dec. 31, 1994 9,961 13 4,763 14,737 -2.4
Dec. 31, 1995 10,847 14 6,199 17,060 15.8
Dec. 31, 1996 10,637 13 7,158 17,808 4.4
Dec. 31, 1997 10,916 14 8,419 19,349 8.6
Dec. 31, 1998 10,989 14 9,653 20,656 6.8
Dec. 31, 1999 10,432 13 10,400 20,845 0.9
</TABLE>
The Fixed Income Fund's average annual total return for the one, five and ten
year periods ended December 31, 1999, was 0.9%, 7.2% and 6.7%, respectively.
These returns assume redemption at the end of each period and reinvestment of
dividends.
Since inception, the total amount of capital gains distributions reinvested in
shares was $13, and the total amount of income distributions reinvested was
$10,535. This information represents past performance of the fund 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. Additional information is
available from the Weitz Funds at the address listed on the front cover.
4
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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
DECEMBER 31, 1999 - QUARTERLY REPORT
January 5, 2000
Dear Fellow Shareholder:
The Fixed Income Fund's total return for the fourth quarter of 1999 was
+0.2%, bringing our total return for the year to +0.9%. This represents a
combination of approximately +6.0% from net interest income (after deducting
fees and expenses) and -5.1% from (unrealized) depreciation of our bonds. The
table below summarizes total return data for our fund as well as the average
intermediate-term, investment grade fixed income fund.
<TABLE>
<CAPTION>
1 YEAR 5 YEARS
------------- -------
<S> <C> <C>
FIXED INCOME FUND 0.9% 7.2%
Average Intermediate Investment
Grade Fixed Income Fund* -1.3% 6.8%
</TABLE>
*Source: Lipper Analytical Services
The following table shows a profile of our portfolio as of December 31:
<TABLE>
<S> <C>
Average Maturity 7.2 years
Average Duration 4.3 years
Average Coupon 7.0%
30-Day SEC Yield at 12-31-99 6.7%
Average Rating AA
</TABLE>
INVESTMENT REVIEW
The last two years have been unusually volatile ones for the bond market.
In 1998, the Fed orchestrated a series of interest rate cuts to avert a possible
worldwide liquidity crisis resulting in historic lows in interest rates. During
1999, as it became apparent that credit and world markets were on the mend, the
Fed reversed course and began raising short-term interest rates in an effort to
avert an outbreak of inflation. The result for 1999 was the second worst bond
market on record. During this two-year period, long-term Treasury bond total
returns swung from approximately +18% in 1998 to -13% in 1999 (Source: Bloomberg
L.P.).
Our strategy is to invest in a relatively short-term, high quality
portfolio to capture most of the return available on long-term bonds while
avoiding some of the volatility associated with longer-term bonds. As a result,
our total returns during this volatile period were +6.8% in 1998
5
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and +0.9% in 1999. Thus our two-year total return was +7.8% (100 x 1.009 =
100.9; 100.9 x 1.068 = 107.8) while long treasuries returned approximately +2.7%
for the two years (100 x 1.18 = 118; 118 x .87 = 102.7). The effect is that we
sacrificed some upside return in 1998 in exchange for greater long-term
stability and comfort, as well as an approximately 5% additional cumulative
return over the past two years.
The market's action in 1999 reinforced our belief that correctly
predicting interest rates involves more luck than skill. Our strategy will not
insulate us completely from large swings in interest rates, but by investing in
high quality, short- to intermediate-term bonds, we feel we can continue to
capture most of the "coupon" returns of long-term bonds with less risk.
OUTLOOK
While interest rates have climbed markedly over the past year in
anticipation of rising inflation, actual inflation remains conspicuous by its
absence. Through November, the core Consumer Price Index has risen 2%, lower
than the same period a year ago. Economic growth has been strong, but
productivity improvements have kept pace, possibly explaining inflation's good
behavior.
As we enter the year 2000, bond traders are paying as much attention to
the stock market as to traditional economic indicators. Their fear is that the
long bull market in stocks has created a "wealth effect" that threatens to
over-stimulate the economy. This would lead to Federal Reserve tightening of
credit and weak bond prices. Since we take a longer-term approach to bond
investing, we tend to ignore this sort of speculation. In our opinion, 7%
coupons on high-quality intermediate-term bonds, in a world of 2-3% inflation,
will serve our investors well regardless of short-term changes in interest
rates.
If you have any questions about any of our investments or strategy, please
feel free to call.
<TABLE>
<S> <C> <C>
Best regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
</TABLE>
6
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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST VALUE
- --------------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- 30.2%
A $ 500,000 Phillip Morris Notes 7.125% 8/15/02 $ 500,000 $ 492,193
750,000 Superior Financial Corp. Sr. Notes 8.65% 4/01/03 750,000 725,635
A+ 48,000 Homeside, Inc. 11.25% 5/15/03 48,000 53,100
Ba2 1,100,000 USA Networks, Inc. 7.0% 7/01/03 1,083,671 1,144,000
A 1,000,000 Countrywide Home Loans, Inc. 6.85% 6/15/04 995,874 978,810
A+ 1,000,000 Ford Motor Credit Co. Notes 6.7% 07/16/04 998,488 979,345
250,000 Local Financial Corp. 11.0% 9/08/04 250,000 261,250
BBB 1,000,000 ConAgra, Inc. Sub. Notes 7.4% 9/15/04 1,000,000 998,959
BB- 750,000 Century Communications Sr. Notes 9.5% 3/01/05 796,601 755,625
A 600,000 General Motors Acceptance Corp. Debs. 6.625% 10/15/05 597,831 577,982
BBB- 1,000,000 Hilton Hotels Corp. Sr. Notes 7.95% 04/15/07 967,328 942,794
BBB- 500,000 Liberty Media Corp. Sr. Notes 7.875% 7/15/09 502,191 498,558
BBB 500,000 Harcourt General 6.5% 5/15/11 486,134 422,500
AA- 1,000,000 Merrill Lynch 7.15% 7/30/12 1,000,000 948,248
AAA 1,000 Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18 1,039 1,047
------------ ------------
Total Corporate Bonds 9,977,157 9,780,046
------------ ------------
MORTGAGE-BACKED SECURITIES -- 23.3%
AAA 8,825 Fannie Mae 11% 1/01/01 (Avg. Life 0.5 years) 8,880 8,952
AAA 336,071 Fannie Mae REMIC Planned Amortization Class 7.5% 4/25/19 333,432 337,074
(Avg. Life 1.2 years)
AAA 25,580 Freddie Mac 9.5% 9/01/03 (Avg. Life 1.6 years) 25,580 26,268
AAA 500,000 Fannie Mae REMIC Planned Amortization Class 6.5% 487,020 491,212
10/25/18
(Avg. Life 2.5 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 1,003,431 995,040
8/15/20
(Avg. Life 2.9 years)
AAA 500,000 Freddie Mac REMIC Planned Amortization Class 6.65% 491,062 487,873
9/15/21
(Avg. Life 3.7 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 1,003,397 980,685
9/15/09
(Avg. Life 5.5 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 6.75% 992,380 972,246
12/15/21
(Avg. Life 5.5 years)
AAA 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% 977,216 980,145
4/15/21
(Avg. Life 5.6 years)
AAA 500,000 Freddie Mac REMIC Planned Amortization Class 7.0% 495,668 489,148
7/15/21
(Avg. Life 6.0 years)
</TABLE>
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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
RATING AMOUNT COST VALUE
- --------------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
AAA $ 1,000,000 Freddie Mac REMIC Planned Amortization Class 7.0% $ 1,018,989 $ 976,585
8/15/21
(Avg. Life 6.4 years)
AAA 863,571 Fannie Mae 6.5% 6/01/18 (Avg. Life 6.7 years) 862,560 826,685
------------ ------------
Total Mortgage-Backed Securities 7,699,615 7,571,913
------------ ------------
TAXABLE MUNICIPAL BONDS -- 3.1%
AAA 325,000 Baltimore Maryland 7.25% 10/15/05 328,749 324,343
AAA 500,000 Stratford Connecticut 6.55% 2/15/13 500,000 455,278
AAA 90,000 Oklahoma Hsg. Fin. Auth. 8.7% 9/01/13 90,000 90,929
AAA 120,000 Oklahoma Hsg. Fin. Auth. 7.3% 12/01/14 120,000 121,248
------------ ------------
Total Taxable Municipal Bonds 1,038,749 991,798
------------ ------------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 35.8%
AAA 2,000,000 Fannie Mae 5.75% 4/15/03 1,995,289 1,943,234
AAA 1,000,000 Federal Home Loan Bank 5.125% 9/15/03 1,000,000 946,093
AAA 100,000 U.S. Treasury Note 8.25% 5/15/05 102,867 101,156
AAA 1,000,000 Freddie Mac 7.09% 6/01/05 1,000,317 984,126
AAA 1,000,000 Fannie Mae 7.27% 8/24/05 1,000,263 989,645
AAA 2,000,000 Federal Home Loan Bank 6.04% 9/08/05 2,000,000 1,897,854
AAA 500,000 Federal Home Loan Bank 6.44% 11/28/05 500,473 488,061
AAA 500,000 Freddie Mac 6.407% 2/22/06 497,644 478,638
AAA 1,000,000 Fannie Mae 7.15% 10/11/06 991,516 975,313
AAA 1,000,000 Fannie Mae 6.56% 11/26/07 1,000,000 949,941
AAA 1,000,000 Fannie Mae 6.50% 3/19/08 993,018 946,477
AAA 1,000,000 Freddie Mac 6.41% 7/15/13 1,012,886 895,754
------------ ------------
Total U.S. Government and Agency Securities 12,094,273 11,596,292
------------ ------------
</TABLE>
8
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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
RATING SHARES COST VALUE
- --------------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
COMMON STOCKS -- 0.5%
46,500 Hanover Capital Mortgage Holdings, Inc. $ 410,555 $ 162,750
------------ ------------
CONVERTIBLE PREFERRED STOCKS -- 2.8%
32,900 Redwood Trust, Inc. 9.74% Pfd. Class B 878,023 892,412
------------ ------------
NON-CONVERTIBLE PREFERRED STOCKS -- 0.5%
B3 5,000 Crown American Realty Trust 11% Pfd. Series A 222,500 176,875
------------ ------------
<CAPTION>
FACE
AMOUNT
-----------
<S> <C> <C> <C> <C>
SHORT-TERM SECURITIES -- 2.3%
$ 758,087 Wells Fargo Government Money Market Fund 758,087 758,087
------------ ------------
Total Investments in Securities $ 33,078,959 31,930,173
============ ------------
Other Assets Less Liabilities -- 1.5% 498,640
------------
Total Net Assets -- 100% $ 32,428,813
============
Net Asset Value Per Share $ 10.58
============
</TABLE>
9
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WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 1999 - QUARTERLY REPORT
January 5, 2000
Dear Shareholder:
Our Government Money Market Fund ended the year with a 7 and 30-day yield
of 4.9%, approximately 1/2 percent higher than the last time we reported to you.
The Federal Reserve raised its target for short-term interest rates once
again in the fourth quarter, bringing the year-to-date increase in the fed funds
rate to 3/4 percent. As we enter 2000, the Fed appears very concerned about the
possibility of an overheating economy and the potential inflationary
implications. With domestic demand strong and worldwide economies seemingly on
the mend, it seems plausible that the Fed could raise short-term interest rates
further in an attempt to ward off inflation.
However, regardless of future rate fluctuations, our strategy is to invest
in liquid short-term Government securities that have a weighted-average maturity
of less than 90 days. And while it is impossible to predict what our fund will
yield over the next year, it is possible that the return on our portfolio will
increase over the ensuing months as short-term investments mature and we are
able to reinvest at higher rates.
If you have any question about the mechanics of the fund or our investment
strategy, please feel free to call.
<TABLE>
<S> <C> <C>
Best regards,
/s/ Wallace R. Weitz /s/ Thomas D. Carney
Wallace R. Weitz Thomas D. Carney
President, Portfolio Manager Portfolio Manager
</TABLE>
10
<PAGE>
WEITZ SERIES FUND, INC.
GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATING AMOUNT VALUE
- --------------------- ----------- -----------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 100.1%*
AAA $22,500,000 U.S Treasury Bill 5.116% 1/20/00 $22,440,652
AAA 11,500,000 Federal Home Loan Bank Discount Note 5.759% 4/19/00 11,307,796
-----------
Total U.S. Government and Agency Securities 33,748,448
-----------
SHORT-TERM SECURITIES -- 0.4%
122,888 Wells Fargo 100% Treasury Money Market Fund 4.677% 122,888
-----------
Total Investments in Securities (Cost $33,871,336)** 33,871,336
-----------
Other Liabilities in Excess of Other Assets -- (0.5%) (151,463)
-----------
Total Net Assets -- 100% $33,719,873
===========
</TABLE>
*Interest rates presented for treasury bills and discount notes are based upon
yield to maturity rate(s) at date(s) of purchase.
**Cost is the same for Federal income tax purposes.
11
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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
SUB-TRANSFER AGENT
National Financial Data Services, Inc.
This report has been prepared for the
information of the shareholders of Weitz
Series Fund, Inc. - Fixed Income Fund and
Government Money Market Fund. For more
detailed information about the Funds, their
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.
01/24/2000
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