WEITZ SERIES FUND INC
N-30D, 2000-11-01

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Table of Contents

	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 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.
	11/01/2000

Fixed Income Fund

SEMI-ANNUAL

One Pacific Place, Suite 600

402-391-1980

www.weitzfunds.com

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WEITZ SERIES FUND, INC. -- FIXED INCOME FUND
	Performance Since Inception
	Portfolio Manager’s Letter
	Schedule of Investments in Securities
	Financial Statements
GOVERNMENT MONEY MARKET FUND
	Portfolio Manager’s Letter
	Schedule of Investments in Securities
	Financial Statements
Notes to Financial Statements

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Fixed Income Fund
	Performance Since Inception			4
	Shareholder Letter			5
	Schedule of Investments			7
	Financial Statements			10
Government Money Market Fund
	Shareholder Letter			14
	Schedule of Investments			15
	Financial Statements			16
Notes to Financial Statements				20

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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 September 30, 2000.

				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
	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
	Sept. 30, 2000				10,659				13				11,380				22,052				5.8	†

The Fixed Income Fund’s average annual total return for the one, five and ten year periods ended September 30, 2000, was 6.0%, 6.0% 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 $11,268. 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 1/1/00 through 9/30/00

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October 9, 2000

Dear Fellow Shareholder:

        The Fixed Income Fund’s total return for the third quarter of 2000 was +3.1%. Interest income contributed about 1.5% of this gain (after deducting fees and expenses), and (unrealized) appreciation of our bonds accounted for the balance of 1.6%. This brings our year to date return to +5.8%. The table below summarizes total return data for our fund as well as the average intermediate-term; investment grade fixed income fund.

		1 Year				5 Years
Fixed Income Fund			6.0	%			6.0	%
Average Intermediate Investment Grade Fixed Income Fund*			5.8	%			5.6	%
*Source: Lipper Analytical Services

        The following table shows a profile of our portfolio as of September 30:

Average Maturity		7.2  years
Average Duration		4.3  years
Average Coupon		7.1%
30-Day SEC Yield at 9-30-00		7.0%
Average Rating		AA

        In my first letter to you as the “sole” manager of our fund, I’m pleased to report on a very good quarter for the Fixed Income Fund. As should be no surprise, this small change in portfolio managers is overshadowed by other “constants”. Namely, our approach to fixed-income investing remains the same. And most importantly, Wally’s influence continues. His insights (among other numerous positive qualities) will continue to be invaluable as we go forward. So, without any further ado, here’s a brief overview of events in the third quarter and a discussion of our portfolio.

Overview

        There was little change in the economic outlook of the Federal Reserve’s posture during the quarter. Prices of high quality bonds were firm, perhaps helped by stock investors seeking refuge from a very volatile stock market. At any rate, bond prices rose as yields declined, and we enjoyed some price appreciation in addition to our interest income.

        While economic data continued to highlight a healthy domestic economy, the Federal Reserve remained on the sideline during the quarter, perhaps willing to allow the full effects of their previous tightenings to be felt in the economy. Some even suspect that the Fed’s next move will be to loosen credit as storm clouds on the economic horizon (rising energy costs, slowing global economies, and a tech slowdown) threaten to cause a recession (particularly if the stock market continues to falter).

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        We rarely have strong convictions about the near-term direction of interest rates, the economy, or the bond market, so we do not take extreme positions that depend on accurate predictions. Having said that, we do worry about an environment of declining credit quality (especially as the economy slows) and will remain focused on being adequately compensated for assuming the additional risk.

Portfolio Review

        The composition of our portfolio has not changed materially over the past several quarters. U.S. government agency bonds and mortgage-backed securities accounted for about 57.7% of the portfolio at September 30, and the average interest rate (coupon) and maturity length of our bonds has remained approximately 7% and 7 years, respectively.

        Our strategy remains investing in a relatively short-term, high quality portfolio that captures most of the return available on long-term bonds while avoiding some of the volatility associated with longer-term bonds. This 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 lower overall interest rate risk.

        If you have any questions about our investments or strategy, please feel free to call.

		Best regards, Thomas D. Carney Portfolio Manager

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WEITZ SERIES FUND, INC. — FIXED INCOME FUND

				Face
Rating				amount							Cost				Value
								CORPORATE BONDS — 31.2%
				$	750,000			Superior Financial Corp. Sr. Notes 8.65% 4/01/03			$	750,000			$	736,117
	A+				48,000			Homeside, Inc. 11.25% 5/15/03				48,000				51,840
	Ba2				1,100,000			USA Networks, Inc. 7.0% 7/01/03				1,086,820				1,098,625
	A				1,000,000			Countrywide Home Loans, Inc. 6.85% 6/15/04				996,482				990,217
	A				1,000,000			Ford Motor Credit Co. Notes 6.7% 7/16/04				998,708				980,357
					250,000			Local Financial Corp. 11.0% 9/08/04				250,000				250,000
	BBB				1,000,000			ConAgra, Inc. Sub. Notes 7.4% 9/15/04				1,000,000				1,005,125
	B+				750,000			Century Communications Sr. Notes 9.5% 3/01/05				790,953				720,000
	A				600,000			General Motors Acceptance Corp. Debs. 6.625% 10/15/05				598,067				589,500
	BBB-				1,000,000			Hilton Hotels Corp. Sr. Notes 7.95% 4/15/07				969,839				973,219
	BBB-				500,000			Liberty Media Corp. Sr. Notes 7.875% 7/15/09				501,598				492,860
	BBB				500,000			Harcourt General 6.5% 5/15/11				486,757				432,500
	AA-				1,000,000			Merrill Lynch 7.15% 7/30/12				1,000,000				958,300
	AAA				1,000			Berkshire Hathaway, Inc. Debs. 9.75% 1/15/18				1,037				1,042
									Total Corporate Bonds			9,478,261				9,279,702
								MORTGAGE-BACKED SECURITIES — 25.0%
	AAA				1,088			Fannie Mae 11% 1/01/01 (Avg. Life 0.1 years)				1,090				1,093
	AAA				220,161			Fannie Mae REMIC Planned Amortization Class 7.5% 4/25/19 (Avg. Life 0.9 years)				218,462				220,036
	AAA				19,517			Freddie Mac 9.5% 9/01/03 (Avg. Life 1.3 years)				19,517				20,171
	AAA				489,836			Fannie Mae REMIC Planned Amortization Class 6.5% 10/25/18 (Avg. Life 1.9 years)				477,379				484,157
	AAA				1,000,000			Freddie Mac REMIC Planned Amortization Class 7.0% 8/15/20 (Avg. Life 2.1 years)				1,003,373				997,492
	AAA				500,000			Freddie Mac REMIC Planned Amortization Class 6.65% 9/15/21 (Avg. Life 2.9 years)				491,201				493,290
	AAA				1,000,000			Freddie Mac REMIC Planned Amortization Class 6.75% 12/15/21 (Avg. Life 4.5 years)				992,496				980,799
	AAA				1,000,000			Freddie Mac REMIC Planned Amortization Class 7.0% 9/15/09 (Avg. Life 4.6 years)				1,003,208				988,835
	AAA				1,000,000			Freddie Mac REMIC Planned Amortization Class 7.0% 4/15/21 (Avg. Life 4.7 years)				977,565				986,745
	AAA				500,000			Freddie Mac REMIC Planned Amortization Class 7.0% 7/15/21 (Avg. Life 5.1 years)				495,734				492,108

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				Face
Rating				amount							Cost				Value
								MORTGAGE-BACKED SECURITIES — (Continued)
	AAA			$	1,000,000			Freddie Mac REMIC Planned Amortization Class 7.0% 8/15/21 (Avg. Life 5.5 years)			$	1,018,693			$	982,075
	AAA				805,946			Fannie Mae 6.5% 6/01/18 (Avg. Life 6.3 years)				805,022				784,782
									Total Mortgage-Backed Securities			7,503,740				7,431,583
								TAXABLE MUNICIPAL BONDS — 3.1%
	AAA				325,000			Baltimore Maryland 7.25% 10/15/05				328,344				330,717
	AAA				500,000			Stratford Connecticut 6.55% 2/15/13				500,000				469,740
	AAA				45,000			Oklahoma Hsg. Fin. Auth. 8.7% 9/01/13				45,000				46,604
	AAA				80,000			Oklahoma Hsg. Fin. Auth. 7.3% 12/01/14				80,000				79,018
									Total Taxable Municipal Bonds			953,344				926,079
								U.S. GOVERNMENT AND AGENCY SECURITIES — 32.7%
	AAA				1,000,000			Federal Home Loan Bank 5.125% 9/15/03				1,000,000				963,726
	AAA				1,000,000			Freddie Mac 7.09% 6/01/05				1,000,000				992,266
	AAA				1,000,000			Fannie Mae 7.27% 8/24/05				1,000,000				997,985
	AAA				2,000,000			Federal Home Loan Bank 6.04% 9/08/05				2,000,000				1,933,154
	AAA				500,000			Federal Home Loan Bank 6.44% 11/28/05				500,423				497,263
	AAA				500,000			Freddie Mac 6.407% 2/22/06				497,884				486,761
	AAA				1,000,000			Fannie Mae 7.15% 10/11/06				994,949				996,816
	AAA				1,000,000			Fannie Mae 6.56% 11/26/07				1,000,000				968,927
	AAA				1,000,000			Fannie Mae 6.50% 3/19/08				993,510				964,919
	AAA				1,000,000			Freddie Mac 6.41% 7/15/13				1,010,377				914,469
									Total U.S. Government and Agency Securities			9,997,143				9,716,286

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Rating				Shares
										Cost				Value
								COMMON STOCKS — 0.8%
					46,500			Hanover Capital Mortgage Holdings, Inc.		$	422,645			$	232,500
								CONVERTIBLE PREFERRED STOCKS — 3.8%
					46,600			Redwood Trust, Inc. 9.74% Pfd. Class B			1,225,075				1,134,419
								NON-CONVERTIBLE PREFERRED STOCKS — 0.7%
	B3				5,000			Crown American Realty Trust 11% Pfd. Series A			222,500				192,500

				Face
				amount
								SHORT-TERM SECURITIES — 1.4%
				$	408,483			Wells Fargo Government Money Market Fund				408,483				408,483
									Total Investments in Securities		$	30,211,191				29,321,552
								Other Assets Less Liabilities — 1.3%								391,767
									Total Net Assets — 100%						$	29,713,319
									Net Asset Value Per Share						$	10.81

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Assets:
	Investment in securities at value (cost $30,211,191)			$	29,321,552
	Accrued interest and dividends receivable				411,392
		Total assets			29,732,944
Liabilities:
	Due to adviser				12,264
	Other expenses				7,361
		Total liabilities			19,625
Net assets applicable to outstanding capital stock				$	29,713,319
Net assets represented by:
	Paid-in capital (note 4)				30,879,039
	Accumulated undistributed net investment income				492,958
	Accumulated net realized loss				(769,039	)
	Net unrealized depreciation of investments				(889,639	)
		Total representing net assets applicable to shares outstanding		$	29,713,319
Net asset value per share of outstanding capital stock (2,749,424 shares outstanding)				$	10.81

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Investment income:
	Dividends							$	89,487
	Interest								1,013,154
		Total investment income							1,102,641
Expenses:
	Investment advisory fee			$	75,124
	Administrative fee				29,427
	Directors fees				132
	Registration fee				11,773
	Sub-transfer agent and fund accounting fees				15,944
	Other expenses				9,713
	Total expenses								142,113
	Less administrative fee waived by investment adviser								(29,427	)
		Net expenses							112,686
		Net investment income							989,955
Realized and unrealized gain on investments:
	Net realized loss on securities								(45,785	)
	Net unrealized appreciation of investments								443,848
		Net realized and unrealized gain on investments							398,063
		Net increase in net assets resulting from operations						$	1,388,018

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					Six months ended
					Sept. 30, 2000				Year ended
					(Unaudited)				March 31, 2000
Decrease in net assets:
	From operations:
		Net investment income			$	989,955			$	2,401,683
		Net realized loss				(45,785	)			(371,371	)
		Net unrealized appreciation (depreciation)				443,848				(1,672,716	)
			Net increase in net assets resulting from operations			1,388,018				357,596
	Distributions to shareholders from:
		Net investment income				(1,038,810	)			(2,375,622	)
			Total distributions			(1,038,810	)			(2,375,622	)
	Capital share transactions:
		Proceeds from sales				690,966				14,862,565
		Payments for redemptions				(3,585,592	)			(20,121,176	)
		Reinvestment of distributions				976,909				2,244,174
			Total decrease from capital share transactions			(1,917,717	)			(3,014,437	)
			Total decrease in net assets			(1,568,509	)			(5,032,463	)
Net assets:
	Beginning of period					31,281,828				36,314,291
	End of period (including undistributed investment income of $492,958 and $541,813, respectively)				$	29,713,319			$	31,281,828

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The following financial information provides selected data for a share of the Fixed Income Fund outstanding throughout the periods indicated.

			Six months ended				Year ended March 31,
			Sept. 30, 2000
			(Unaudited)				2000				1999				1998				1997				1996
Net asset value, beginning of period			$	10.68			$	11.22			$	11.26			$	10.77			$	10.90			$	10.61
Income (loss) from investment operations:
	Net investment income			0.36				0.69				0.66				0.65				0.66				0.65
	Net gains or losses on securities (realized and unrealized)			0.14				(0.57	)			(0.04	)			0.47				(0.11	)			0.31
	Total from investment operations			0.50				0.12				0.62				1.12				0.55				0.96
Less distributions:
	Dividends from net investment income			(0.37	)			(0.66	)			(0.66	)			(0.63	)			(0.68	)			(0.67	)
Net asset value, end of period			$	10.81			$	10.68			$	11.22			$	11.26			$	10.77			$	10.90
Total return				4.8%	†			1.2%				5.7%				10.7%				5.2%				9.2%
Ratios/supplemental data:
	Net assets, end of period ($000)		$	29,713			$	31,282			$	36,314			$	30,334			$	22,349			$	16,901
	Ratio of net expenses to average net assets††			0.75%	*			0.75%				0.75%				0.75%				0.75%				0.75%
	Ratio of net investment income to average net assets			6.59%	*			6.15%				5.91%				6.18%				6.30%				6.18%
	Portfolio turnover rate			1%	†			39%				26%				21%				24%				28%

*	Annualized.

†	Not Annualized.
††	Absent voluntary waivers, the expense ratio would have been 0.95% for the six  months ended September 30, 2000, 0.88%, 0.86%, 0.91%, 0.93% and 0.95% for the years ended March 31, 2000, 1999, 1998, 1997 and 1996, respectively.

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October 9, 2000

Dear Shareholder:

        The yield on our Government Money Market Fund increased modestly during the third quarter with both our 7-day and 30-day yields reaching 5.9% as of September 30. Overall, short-term interest rates were mostly unchanged during the quarter, as the primary rate-setter, the Federal Reserve, made no changes to monetary policy.

        On the surface the economy appears quite healthy. However, evidence of a slowdown is beginning to mount. Higher energy costs, which could threaten consumer spending, and weakness in the stock market (historically a pretty good indicator of future economic expectations) would seem to indicate the Fed’s efforts to slow the economy by raising rates might be at or near its end.

        As usual this letter is short, as there is very little to report in a quarterly letter from a money market fund invested in short-term government securities. It is impossible to predict what our fund will yield over the next year, but since the maturities of its securities are short, we will constantly be reinvesting at new rates, and the yield will continue to be impacted by interest rates on short-term Treasuries.

        If any of this raises questions, please feel free to call.

		Best regards, Thomas D. Carney Portfolio Manager

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				Face
Rating				amount							Value
								U.S. GOVERNMENT AND AGENCY SECURITIES — 100.3%*
	AAA			$	3,000,000			U.S. Treasury Bill 6.192% 10/12/00			$	2,994,484
	AAA				2,000,000			U.S. Treasury Bill 5.943% 10/19/00				1,994,250
	AAA				6,000,000			Federal Home Loan Bank Discount Note 6.548% 11/08/00				5,959,657
	AAA				6,000,000			Federal Farm Credit Bank Discount Note 6.535% 11/22/00				5,944,967
	AAA				3,000,000			U.S. Treasury Bill 6.287% 11/24/00				2,972,533
	AAA				4,000,000			U.S. Treasury Bill 6.264% 11/30/00				3,959,441
	AAA				10,000,000			Federal Home Loan Bank Discount Note 6.548% 12/13/00				9,871,439
									Total U.S. Government and Agency Securities			33,696,771
								SHORT-TERM SECURITIES — 0.2%
					70,305			Wells Fargo 100% Treasury Money Market Fund 5.665%				70,305
									Total Investments in Securities (Cost $33,767,076)**			33,767,076
								Other Liabilities in Excess of Other Assets — (0.5%)				(182,007	)
									Total Net Assets — 100%		$	33,585,069

*	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.

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Assets:
	Investment in securities at amortized cost, which approximates value			$	33,767,076
	Accrued interest				4,153
		Total assets			33,771,229
Liabilities:
	Due to adviser				7,331
	Distributions payable				172,122
	Other expenses				6,707
		Total liabilities			186,160
Net assets applicable to outstanding capital stock				$	33,585,069
Net assets represented by:
	Paid-in capital (note 4)				33,585,069
	Accumulated undistributed net investment income				3,347
	Accumulated net realized loss				(3,347	)
		Total representing net assets applicable to shares outstanding		$	33,585,069
Net asset value per share of outstanding capital stock (33,585,069 shares outstanding)				$	1.00

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Investment income:
	Interest							$	947,863
		Total investment income							947,863
Expenses:
	Investment advisory fee			$	77,093
	Administrative fee				30,115
	Directors fee				156
	Registration fees				8,045
	Sub-transfer agent and fund accounting fees				17,309
	Other expenses				7,199
	Total expenses								139,917
	Less advisory and administrative fees waived by investment adviser								(62,824	)
		Net expenses							77,093
		Net investment income							870,770
	Realized gain on investments								4,419
		Net increase in net assets resulting from operations						$	875,189

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					Six months ended
					Sept. 30, 2000				Year ended
					(Unaudited)				March 31, 2000
Increase (decrease) in net assets:
	From operations:
		Net investment income			$	870,770			$	1,435,566
		Net realized gain				4,419				—
			Net increase in net assets resulting from operations			875,189				1,435,566
	Distributions to shareholders from:
		Net investment income				(875,189	)			(1,435,566	)
			Total distributions			(875,189	)			(1,435,566	)
	Capital share transactions, at $1.00 per share:
		Proceeds from sales				39,777,977				469,700,906
		Payments for redemptions				(45,450,876	)			(465,683,084	)
		Reinvestment of distributions				831,838				1,251,305
			Total increase (decrease) from capital share transactions			(4,841,061	)			5,269,127
			Total increase (decrease) in net assets			(4,841,061	)			5,269,127
Net assets:
	Beginning of period					38,426,130				33,157,003
	End of period				$	33,585,069			$	38,426,130

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The following financial information provides selected data for a share of the Government Money Fund outstanding throughout the periods indicated.

			Six months ended				Year ended March 31,
			Sept. 30, 2000
			(Unaudited)				2000				1999				1998				1997				1996
Net asset value, beginning of period			$	1.00			$	1.00			$	1.00			$	1.00			$	1.00			$	1.00
Income from investment operations:
	Net investment income			0.06				0.05				0.05				0.05				0.05				0.05
Less distributions:
	Dividends from net investment income			(0.06	)			(0.05	)			(0.05	)			(0.05	)			(0.05	)			(0.05	)
Net asset value, end of period			$	1.00			$	1.00			$	1.00			$	1.00			$	1.00			$	1.00
Total return				5.7%	*			4.6%				4.7%				5.1%				4.8%				5.2%
Ratios/supplemental data:
	Net assets, end of period ($000)		$	33,585			$	38,426			$	33,157				$8,330				$5,820				$4,142
	Ratio of net expenses to average net assets†			0.50%	*			0.50%				0.50%				0.50%				0.50%				0.50%
	Ratio of net investment income to average net assets			5.67%	*			4.61%				4.47%				4.95%				4.71%				4.95%

*	Annualized

†	Absent voluntary waivers, the expense ratio would have been 0.91% for the six  months ended September 30, 2000, and 0.89%, 1.03%, 1.12%, 1.15% and 1.14% for the years ended March 31, 2000, 1999, 1998, 1997 and 1996, respectively.

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(1) Organization

	Weitz Series Fund, Inc. (the “Company”), 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 September 30, 2000, the Company had four series in operation: the Fixed Income Fund, the Government Money Market Fund, the Value Fund, and the Hickory Fund. The accompanying financial statements present the financial position and results of operations of the Fixed Income and the Government Money Market Funds (each, a “Fund”).
	The Fixed Income Fund’s investment objective is high current income consistent with preservation of capital.
	The Government Money Market Fund’s investment objective is current income consistent with the preservation of capital and maintenance of liquidity. The Government Money Market Fund invests principally in debt obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities and repurchase agreements thereon with maturities not exceeding one year.

(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

	Fixed Income Fund
	Investment securities are carried at market 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.

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	•	The value of certain debt securities for which market quotations are not readily available may be based upon current market prices of securities which are comparable in coupon, rating and maturity or an appropriate matrix utilizing similar factors.
	•	The value of securities for which market quotations are not readily available, including restricted and not readily marketable securities, is determined in good faith under the supervision of the Company’s Board of Directors.

	Government Money Market Fund
	Investment securities are carried at amortized cost, which approximates market value. Pursuant to Rule 2a-7 of the Investment Company Act of 1940, amortized cost, as defined, is a method of valuing securities at acquisition cost, adjusted for amortization of premium or accretion of discount rather than at their value based on current market factors. This method of valuation is used consistently throughout the industry by money market funds wishing to maintain a constant net asset value per share.

	(b) Federal Income Taxes

	Since the Funds’ policy is to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their 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 Fixed Income Fund.

	(c) Security Transactions

	Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains or losses are determined by specifically identifying the security sold.
	With respect to the Fixed Income Fund, income dividends and distributions to shareholders are recorded on the ex-dividend date. Interest, including amortization of discount and premium, is accrued as earned.
	With respect to the Government Money Market Fund, in computing net investment income, the Fund amortizes premiums and discounts and accrues interest income daily.

	(d) Dividend Policy

	The Fixed Income Fund will declare and distribute income dividends and capital gains distributions as may be required to qualify as a regulated investment company under the Internal Revenue Code.

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	Generally, the Fixed Income Fund pays income dividends on a quarterly basis. All dividends and distributions will be reinvested automatically unless the shareholder elects otherwise.
	The Government Money Market Fund will declare dividends daily and pay dividends monthly.

	(e) 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 may differ from those estimates.

(3) Related Party Transactions

	Each Fund has retained Wallace R. Weitz & Company (the “Adviser”) as its investment adviser. In addition, the Company has an agreement with Weitz Securities, Inc. to act as distributor for the Funds’ shares. Certain officers and directors of the Company 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 1/2% per annum of the respective Fund’s average daily net asset value. The Adviser has agreed to reimburse each Fund up to the amount of advisory fees paid to the extent that total expenses exceed 1% of the respective Fund’s average annual daily net asset value.
	For the six months ended September 30, 2000, the Adviser waived investment advisory fees of 1/4% per annum of the Government Money Market Fund’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 six months ended September 30, 2000, the fee was calculated as follows:

		Average annual rate
		on Fund’s daily net assets				Waived
Fixed Income Fund			.20%				.20%
Government Money Market Fund			.20%				.16%

	The total investment advisory and administrative fees waived by the Adviser are set forth in each Fund’s Statement of Operations.
	Weitz Securities, Inc. as distributor, received no compensation for distribution of shares of the Funds.

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(4) Capital Stock

	The Company is authorized to issue a total of five billion shares of common stock in series with a par value of $.001 per share. Ten million of these shares have been authorized by the Board of Directors to be issued in the series designated Fixed Income Fund and 100 million of these shares have been authorized to be issued in the series designated Government Money Market Fund. The Board of Directors may authorize additional shares in other series of the Company’s shares without shareholder approval. Each share of stock will have a pro rata interest in the assets of the portfolio to which the stock of that series relates and will have no interest in the assets of any other series.
	Transactions in the capital stock of the Fixed Income Fund are summarized as follows:

				Six months ended
				Sept. 30, 2000				Year ended
				(Unaudited)				March 31, 2000
Transactions in shares:
	Shares issued				65,082				1,323,301
	Shares redeemed				(337,683	)			(1,837,651	)
	Reinvested dividends				92,921				207,450
		Net increase (decrease)			(179,680	)			(306,900	)

(5) Securities Transactions

	Fixed Income Fund
	Purchases and proceeds from maturities or sales of investment securities of the Fixed Income Fund, other than short-term securities, aggregated $275,421 and $1,733,671, respectively. The cost of investments is the same for financial reporting and Federal income tax purposes. At September 30, 2000, the aggregate gross unrealized appreciation and depreciation, based on cost for Federal income tax purposes, were $50,279 and $939,918, respectively.
	At September 30, 2000, the Fixed Income Fund had tax basis capital losses of $412,112 which may be carried over to offset future realized capital gains. To the extent that such carryforwards are used, no capital gains distributions will be made. The carryforwards expire as follows: March 31, 2004 — $337,251, March 31, 2005 — $14,632 and March 31, 2008 — $60,229. In addition, the Fixed Income Fund had deferred capital losses occurring subsequent to October 31, 1999 of $311,142. For tax purposes such losses will be reflected in the year ended March 31, 2001.

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