<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
Wells Fargo Bank Minnesota, National Association
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 shareholders of Weitz
Series Fund, Inc. -- Value Fund. 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.
8/02/2000
514360
VALUE FUND
QUARTERLY
REPORT
JUNE 30, 2000
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
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
PERFORMANCE SINCE INCEPTION
A long-term perspective on the Value Fund's performance is shown below. The
table below shows how an investment of $25,000 in the Value 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 Value Fund for the one, five and ten year
periods ended June 30, 2000, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL ANNUAL
$25,000 CAPITAL GAIN REINVESTED VALUE OF RATE OF
PERIOD ENDED INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES RETURN
------------ ---------- ------------- --------- ------ ------
<S> <C> <C> <C> <C> <C>
May 9, 1986 $25,000 $ -- $ -- $ 25,000 --%
Dec. 31,
1986 25,863 -- -- 25,863 3.5+
Dec. 31,
1987 24,253 264 1,205 25,722 -0.5
Dec. 31,
1988 27,430 299 2,223 29,952 16.5
Dec. 31,
1989 30,763 2,103 3,701 36,567 22.1
Dec. 31,
1990 28,040 2,112 4,500 34,652 -5.2
Dec. 31,
1991 33,940 3,811 6,475 44,226 27.6
Dec. 31,
1992 36,350 6,019 7,884 50,253 13.6
Dec. 31,
1993 42,010 9,114 9,199 60,323 20.0
Dec. 31,
1994 36,075 10,414 7,899 54,388 -9.8
Dec. 31,
1995 45,955 17,447 11,855 75,257 38.4
Dec. 31,
1996 51,478 24,054 13,792 89,324 18.7
Dec. 31,
1997 62,878 42,824 18,398 124,100 38.9
Dec. 31,
1998 72,675 65,163 22,181 160,019 28.9
Dec. 31,
1999 82,700 83,540 27,328 193,568 21.0
June 30,
2000 75,700 89,313 25,660 190,673 -1.5++
</TABLE>
The fund's average annual total return for the one, five and ten year periods
ending June 30, 2000, was 2.2%, 23.9% and 17.9%, 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 $68,054, and the total amount of income distributions reinvested was
$13,591. 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.
+Return is for the period 5/9/86 through 12/31/86
++Return is for the period 1/1/00 through 6/30/00
2
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
JUNE 30, 2000 - QUARTERLY REPORT
July 9, 2000
Dear Fellow Shareholder:
The 2nd quarter of 2000 was modestly positive for our fund. Our total
return was +1.8%. This compares to DECLINES in the S&P 500 (-2.7%), the Dow
(-4.0%), the NASDAQ (-13.2%), and the Russell 2000 (-3.8%). This modest recovery
brings us to -1.5% for the 1st half of the year, while the picture for the other
averages is mixed: S&P -0.4%; Dow -8.4%; NASDAQ -2.5%; and the Russell +3.0%.
The table below shows longer-term performance comparisons between our fund
and the S&P 500, a proxy for large capitalization stocks, the Russell 2000,
representing small cap stocks, and our peer group of funds, as calculated by
Lipper Analytical Services.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
VALUE FUND 2.2% 22.4% 23.9% 17.9%
S&P 500 Index 7.2 19.7 23.8 17.8
Russell 2000 Index 14.3 10.6 14.3 13.6
Average Growth and Income Fund 2.1 12.8 17.9 14.4
</TABLE>
During the 2nd quarter of 2000, technology stocks suffered their first
serious correction in years. Investors, day traders, venture capitalists, and
underwriters of hot new issues (IPO's) began to have doubts about the future
profitability of Internet-related and other technology companies. Optimism and
rationalization gave way to fear and loathing, and many of the market's trading
sessions had the feel of a demolition derby.
In the face of this volatile market, our fund remained mostly above the
fray. We have spent the last year selling cable and telecom stocks that had
caught a touch of "dot-com" fever and buying interest rate sensitive stocks
(banks, thrifts, real estate, and mortgage companies) that were being dumped in
response to the Federal Reserve's raising of interest rates. Our relatively
defensive portfolio was somewhat insulated from the market correction, and was
probably helped slightly by investors seeking safe hiding places.
MAY SHAREHOLDER MEETING--THE BIG QUESTIONS
On May 24, over 400 shareholders gathered for our Shareholder Information
Meeting. There were nearly 100 questions submitted before or during the meeting,
but the vast majority seemed to cluster in a few areas:
1. TECHNOLOGY STOCKS--Do we, or will we invest in tech stocks? Is the tech boom
over?
3
<PAGE>
2. VALUE STOCKS--Where are we finding "value" in the face of a technology
dominated market and an unfriendly Federal Reserve?
3. THE FUTURE--Of the Economy? Of the Stock Market? Of our portfolio?
I suspect that these are questions of interest to most shareholders, so I
will try to summarize the answers that Rick, Tom and I gave at the meeting.
INVESTING IN TECHNOLOGY COMPANIES
All of our companies USE technology to improve their own products and
services and to lower their costs, but we tend to avoid the MANUFACTURERS of
high technology products. In a highly competitive, rapidly changing industry,
today's leader may be tomorrow's loser, and we find it very hard to predict
which companies have truly sustainable competitive advantages. Even if we
develop some conviction about a terrific company, other investors are invariably
willing to pay higher prices than we are, based on the EXPECTATION of future
profits, so we are usually priced out of the market. As Warren Buffett says,
"You pay a very high price for a cheery consensus." We are willing to miss out
on some great stocks if our discipline can help us avoid big losses when an
investment fad faces its inevitable "emperor's new clothes" moment. (We have
been through this before with other "hot" groups of stocks--such as the "Nifty
Fifty" growth stocks of the early 1970s, energy stocks in the late 1970s, and
branded consumer products in the late 1980s.)
We prefer companies that can USE new technology to improve the way they
run their own (more prosaic) businesses. Cellular telephone companies have
attracted far more subscribers, who use many more minutes of service, because
Nokia, Motorola, and others have competed fiercely to develop cheaper and better
cellular phones. Cable television companies were able to play Scientific Atlanta
off against General Instrument to spur development of digital technology at
affordable prices so that cable operators could offer more channels and earn
higher profits. Banks and insurance companies' cost savings through
computerization have undoubtedly exceeded aggregate profits of computer
manufacturers over the years.
In short, we do not deny the upside potential of technology stock
investing, but we usually find that we can improve our odds of long-term success
by focusing in other areas.
VALUE INVESTING IN TODAY'S MARKET
Stocks generally sell at "bargain" prices only if investors disagree about
their desirability as investments. Sometimes they have understandable concerns
about the seriousness of real business problems. These stocks may, or may not,
deserve to be "cheap." However, in other
4
<PAGE>
cases, the difference is merely one of investment "time horizon." I have
actually heard sophisticated investment professionals make comments such as,
"The stock is very cheap and will go up a lot, but don't buy it yet because
there is no `catalyst' to make it move up right away." Or, "I would rather pay a
higher price later when I know that it has started to move." We have always been
willing to be early in buying a stock as long as the odds are good that we will
earn high returns during our (hopefully long) holding period.
This brings us to interest rates, interest-sensitive stocks, and the
Federal Reserve. One of the more deeply entrenched Wall St. maxims is "Don't
Fight the Fed." Investors have "learned" to sell financial services companies
and other "interest rate sensitive" stocks at the first sign of Fed tightening
and to avoid them until rates stop going up.
There are several problems with this approach. Some of these supposedly
"interest-sensitive" companies are NOT hurt by higher rates (some are even
helped). Many other financial companies whose earnings ARE depressed by higher
rates incur no lasting damage and the long-term returns on their stocks are
unaffected by short-term moves in rates. Waiting for a change in Fed policy is
usually futile, because the timing of their moves is unpredictable. Then, the
market reaction to a perceived policy reversal is usually so rapid, that those
who have waited are unable to buy meaningful positions before the stocks have
moved substantially higher.
The cost of being early in making an otherwise good investment is looking
foolish for a while. We are willing to go through protracted periods (like all
of 1994) with (figurative) egg on our faces in pursuit of better than average
long-term results. At any rate, for better or worse, we have (again) been
finding great "values" among financial services and real estate companies ever
since the Fed started raising rates a year ago. My last several quarterly
letters have cited chapter and verse on many of these stocks, and the letters
are available on our web site.
THE FUTURE
We are very skeptical about predicting economic or stock market events and
trends, and we try never to make investments that depend on accurate
predictions. However, we do have some working assumptions about the next several
years:
1. The American economy has not had a recession in 10 years, and we assume we
will eventually have one. We have no idea when, or how severe it will be. A
moderate recession should not be a threat to the long-term performance of
most of our companies, but we are becoming more wary of credit risk and of
debt levels in economically sensitive businesses.
5
<PAGE>
2. Stocks in the S&P 500 have risen at over 15% per year over the past 26
years. This is faster than the growth in the values of the underlying
businesses. If prices are to be brought in line with business values, stock
market returns will have to be substantially lower than 15% for many years.
Warren Buffett has suggested (FORTUNE, 11/99) that a plausible rate of S&P
500 total returns over the next 17 years might be 6% per year.
3. In a less ebullient market environment, speculation may lose some of its
appeal and portfolio indexing may be less popular. This might make
individual stock selection more important and active portfolio managers more
valuable to their clients.
This has been an odd 6-month period. Our portfolio has seemed strangely
disconnected from the general market (which has not been a bad thing). I really
don't know where we go from here, but as usual, I would encourage shareholders
not to be too concerned with near-term market movements. I believe that our
companies are worth more than their stock prices indicate and I feel good about
the prospects for reasonable long-term returns.
Sincerely,
/s/ WALLACE R. WEITZ
Wallace R. Weitz
President, Portfolio
Manager
6
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
COMMON STOCKS -- 85.9%
AUTO SERVICES -- 0.5%
645,100 Insurance Auto Auctions, Inc.* $ 7,525,098 $ 13,627,737
-------------- --------------
BANKING -- 18.8%
415,500 Astoria Financial Corp. 12,646,868 10,699,125
2,104,420 Commercial Federal Corp. 45,264,747 32,750,036
67,500 First Federal Bankshares, Inc. 672,813 531,562
78,000 First Place Financial Corp. 838,500 838,500
5,879,900 Golden State Bancorp, Inc.* 110,159,134 105,838,200
4,482,500 Greenpoint Financial Corp. 111,688,488 84,046,875
343,300 Local Financial Corp.* 3,191,222 2,864,409
5,581,500 North Fork Bancorporation, Inc. 98,291,111 84,420,188
244,000 Port Financial Corp.* 2,687,610 3,385,500
50,000 Troy Financial Corp.* 491,875 493,750
1,764,200 U.S. Bancorp 41,543,851 33,960,850
343,000 Virginia Capital Bancshares, Inc. 4,379,094 5,230,750
3,926,602 Washington Mutual, Inc. 118,135,971 113,380,633
-------------- --------------
549,991,284 478,440,378
-------------- --------------
CABLE TELEVISION -- 4.3%
2,289,633 Adelphia Communications Corp. CL A* 72,004,967 107,326,547
125,000 Insight Communications Co.* 1,757,917 1,953,125
-------------- --------------
73,762,884 109,279,672
-------------- --------------
CONSUMER PRODUCTS AND SERVICES -- 1.7%
633,400 American Classic Voyages Co.* 10,522,188 13,063,875
4,875 Lady Baltimore Foods, Inc. CL A 227,781 241,313
1,013,000 Premier Parks, Inc.* 25,497,480 23,045,750
2,744,000 Protection One, Inc.* 14,948,651 6,002,500
-------------- --------------
51,196,100 42,353,438
-------------- --------------
FEDERAL AGENCIES -- 3.4%
2,312,900 SLM Holding Corp. 81,273,012 86,589,194
-------------- --------------
</TABLE>
7
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
FINANCIAL SERVICES -- 11.3%
1,357,300 Allied Capital Corp. $ 23,911,458 $ 23,074,100
338,600 American Capital Strategies, Ltd. 5,756,200 8,084,075
585 Berkshire Hathaway, Inc. CL A* 25,010,024 31,473,000
66,917 Berkshire Hathaway, Inc. CL B* 129,904,212 117,773,920
2,835,500 Imperial Credit Industries, Inc.* 37,083,542 12,050,875
1,541,850 The PMI Group, Inc. 44,124,709 73,237,875
949,000 United Asset Management Corp. 17,945,001 22,182,875
300,000 United Panam Financial Corp.* 2,019,813 309,375
-------------- --------------
285,754,959 288,186,095
-------------- --------------
HEALTH CARE -- 0.2%
644,350 LabOne, Inc. 8,795,635 3,624,469
40,900 Lincare Holdings, Inc.* 1,012,280 1,007,163
-------------- --------------
9,807,915 4,631,632
-------------- --------------
INFORMATION AND DATA PROCESSING -- 0.0%
180,000 Intelligent Systems Corp.* 380,869 765,000
-------------- --------------
LODGING AND GAMING -- 7.2%
2,493,100 Extended Stay America, Inc.* 16,998,332 23,061,175
546,000 Harrah's Entertainment, Inc.* 7,985,042 11,431,875
8,382,900 Hilton Hotels Corp. 81,793,897 78,589,687
784,500 Mandalay Resort Group* 11,209,694 15,690,000
4,491,500 Park Place Entertainment Corp.* 30,454,203 54,740,156
-------------- --------------
148,441,168 183,512,893
-------------- --------------
MEDIA AND ENTERTAINMENT -- 6.6%
3,658,200 AT&T Corp. -- Liberty Media Group A* 25,639,567 88,711,350
227,908 Chris-Craft Industries, Inc.* 9,212,917 15,056,172
58,700 Daily Journal Corp.* 1,306,716 1,716,975
39,700 Gabelli Global Multimedia Trust, Inc. 270,357 545,875
1,641,300 Valassis Communications, Inc.* 36,167,476 62,574,562
-------------- --------------
72,597,033 168,604,934
-------------- --------------
</TABLE>
8
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
MORTGAGE BANKING -- 5.4%
4,357,700 Countrywide Credit Industries, Inc. $ 143,597,170 $ 132,092,781
18,000 New Century Financial Corp.* 155,250 156,938
1,380,400 Resource Bancshares Mtg. Grp., Inc. 18,271,246 5,780,425
-------------- --------------
162,023,666 138,030,144
-------------- --------------
PRINTING SERVICES -- 1.2%
3,483,000 Mail-Well, Inc.* 38,364,390 30,040,875
-------------- --------------
REAL ESTATE AND CONSTRUCTION -- 2.8%
3,615,100 Catellus Development Corp.* 46,508,516 54,226,500
545,600 Forest City Enterprises, Inc. CL A 11,075,278 18,209,400
-------------- --------------
57,583,794 72,435,900
-------------- --------------
REAL ESTATE INVESTMENT TRUSTS -- 8.0%
1,571,500 Capital Automotive REIT 20,768,123 22,197,437
416,000 Dynex Capital, Inc.* 11,646,215 650,000
1,337,980 Fortress Investment Corp. 24,369,219 20,069,700
301,300 Hanover Capital Mortgage Holdings, Inc. 3,265,468 1,355,850
62,805 Healthcare Financial Partners Units** 6,264,799 6,280,500
13,991,700 Host Marriott Corp. 126,313,713 131,172,187
465,000 IMPAC Mortgage Holdings, Inc. 6,507,830 2,005,313
475,000 NovaStar Financial, Inc.* 7,282,611 1,810,938
1,242,717 Redwood Trust, Inc. 28,894,319 17,398,038
-------------- --------------
235,312,297 202,939,963
-------------- --------------
RESTAURANTS -- 0.3%
476,400 CBRL Group, Inc. 7,274,406 6,997,125
-------------- --------------
RETAIL DISCOUNT -- 1.3%
2,859,000 Consolidated Stores Corp.* 41,568,185 34,308,000
-------------- --------------
</TABLE>
9
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
SATELLITE SERVICES -- 0.6%
1,317,300 Orbital Sciences Corp.* $ 17,920,702 $ 16,054,594
-------------- --------------
TELECOMMUNICATIONS -- 10.1%
922,500 Centennial Communications Corp.* 3,636,430 12,684,375
6,709,600 Citizens Communications Co.* 68,174,346 115,740,600
456,600 Corecomm, Ltd.* 1,442,028 8,903,700
1,184,300 Telephone and Data Systems, Inc. 48,693,177 118,726,075
38,100 United States Cellular Corp.* 1,794,528 2,400,300
-------------- --------------
123,740,509 258,455,050
-------------- --------------
UTILITIES -- 2.2%
24,100 Empire District Electric Co. 615,996 531,706
3,558,600 Western Resources, Inc. 81,791,414 55,158,300
-------------- --------------
82,407,410 55,690,006
-------------- --------------
Total Common Stocks 2,046,925,681 2,190,942,630
-------------- --------------
WARRANTS -- 0.0%
338,100 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00* 42,263 1,321
350,000 NovaStar Financial, Inc., Expiring 2/03/01* 175,000 350
-------------- --------------
Total Warrants 217,263 1,671
-------------- --------------
RIGHTS -- 0.0 %
39,700 Gabelli Global Multimedia Trust, Inc., Expiring 7/19/00* 0 8,064
-------------- --------------
CONVERTIBLE PREFERRED STOCKS -- 0.4%
2,100,000 NovaStar Financial, Inc. 7% Pfd. Class B Cumulative* 13,911,099 11,298,000
-------------- --------------
</TABLE>
10
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
NON-CONVERTIBLE PREFERRED STOCKS -- 0.1%
15,000 Crown American Realty Trust 11.0% Pfd. Series A $ 667,500 $ 566,250
30,000 Prime Retail, Inc. 10.5% Pfd. Series A 645,000 276,563
34,000 RB Asset, Inc. 15.0% Pfd. Series A 845,750 510,000
-------------- --------------
Total Non-Convertible Preferred Stocks 2,158,250 1,352,813
-------------- --------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
---------
<C> <S> <C> <C>
CORPORATE BONDS -- 0.3%
$4,500,000 USA Networks, Inc. 7.0% 7/01/03 4,434,810 4,381,875
750,000 Local Financial Corp. 11.0% 9/08/04 750,000 755,625
2,000,000 Harcourt General 6.5% 5/15/11 1,946,183 1,810,000
-------------- --------------
Total Corporate Bonds 7,130,993 6,947,500
-------------- --------------
U.S. GOVERNMENT AND AGENCY SECURITIES -- 3.6%
4,750,000 Fannie Mae 6.625% 7/12/00 4,750,203 4,749,734
13,000,000 Federal Home Loan Bank 5.5% 7/14/00 12,999,429 12,994,787
40,000,000 Freddie Mac 5.0% 2/15/01 39,789,843 39,568,760
25,000,000 Fannie Mae 5.88% 3/25/04 24,772,950 24,011,925
3,000,000 Federal Home Loan Bank 6.04% 9/08/05 3,000,000 2,851,236
1,000,000 Federal Home Loan Bank 6.44% 11/28/05 1,000,886 974,337
6,000,000 Fannie Mae 6.56% 11/26/07 6,000,000 5,707,380
-------------- --------------
Total U.S. Government and Agency Securities 92,313,311 90,858,159
-------------- --------------
</TABLE>
11
<PAGE>
WEITZ SERIES FUND, INC. -- VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 9.4%
$61,160,816 Wells Fargo Government Money Market Fund $ 61,160,816 $ 61,160,816
25,000,000 Fannie Mae Discount Note 7/13/00 24,949,500 24,954,800
25,000,000 Fannie Mae Discount Note 7/27/00 24,889,680 24,891,500
3,000,000 U.S. Treasury Bill 8/24/00 2,974,412 2,976,081
25,000,000 Fannie Mae Discount Note 9/07/00 24,695,417 24,704,825
29,000,000 U.S. Treasury Bill 9/07/00 28,685,850 28,699,618
50,000,000 Freddie Mac Discount Note 9/21/00 49,262,911 49,284,450
24,000,000 U.S. Treasury Bill 10/19/00 23,578,333 23,588,160
-------------- --------------
Total Short-Term Securities 240,196,919 240,260,250
-------------- --------------
Total Investments in Securities $2,402,853,516 2,541,669,087
==============
Other Assets Less Liabilities -- 0.3% 6,764,314
--------------
Total Net Assets -- 100% $2,548,433,401
==============
Net Asset Value Per Share $ 30.28
==============
</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.
12
