<PAGE>
WEITZ PARTNERS, 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 shareholders of
Weitz Partners, Inc. -- Partners 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.
510189
PARTNERS VALUE FUND
QUARTERLY
REPORT
SEPTEMBER 30, 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
<PAGE>
(This page has been left blank intentionally.)
2
<PAGE>
HISTORICAL PERFORMANCE INFORMATION
The table below gives a long-term perspective of the Partners Value Fund (the
"Fund") and its predecessor, Weitz Partners II -- Limited Partnership (the
"Predecessor Partnership"). Performance numbers are AFTER deducting all fees and
expenses and assume reinvestment of dividends. The Fund succeeded to
substantially all of the assets of the Predecessor Partnership, a Nebraska
investment limited partnership as of December 31, 1993. Wallace R. Weitz was
General Partner and portfolio manager for the Predecessor Partnership and is
portfolio manager for the Fund. The Fund's investment objectives, policies,
guidelines and restrictions are materially equivalent to those of the
Predecessor Partnership. The table also sets forth average annual total return
data for the Fund and the Predecessor Partnership for the one, five and ten year
periods ended September 30, 1999, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
PERIOD ENDED PARTNERS II S&P 500 PERIOD ENDED PARTNERS VALUE S&P 500
- ------------ ----------- ------- ------------ -------------- -------
<S> <C> <C> <C> <C> <C>
12/31/83 9.9% 4.2%+ 12/31/94 -9.0% 1.3%
12/31/84 14.5 6.3 12/31/95 38.7 37.5
12/31/85 40.7 31.7 12/31/96 19.2 22.9
12/31/86 11.1 18.7 12/31/97 40.6 33.4
12/31/87 4.3 5.3 12/31/98 29.1 28.6
12/31/88 14.9 16.5 9/30/99 15.2 5.4++
12/31/89 20.3 31.6
12/31/90 -6.3 -3.1 Cumulative 1,413.9 1,191.2
12/31/91 28.1 30.2
12/31/92 15.1 7.6 Average Annual
12/31/93 23.0 10.1 Compound Growth
(Since inception
June 1, 1983) 18.1 16.9
</TABLE>
Average annual total return for the Fund (inception 1/94) and for the
Predecessor Partnership (inception 6/83) for the one, five and ten year periods
ended September 30, 1999, was 32.0%, 27.0%, and 18.2%, respectively. These
returns assume redemption at the end of each period and reinvestment of
dividends.
This information represents past performance 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. The S&P 500 is an unmanaged index consisting of 500
companies. Information relating to the S&P 500 assumes reinvestment of
dividends. The performance data presented includes performance for the period
before the Fund became an investment company registered with the Securities and
Exchange Commission. During this time, the Fund was not registered under the
Investment Company Act of 1940 and therefore was not subject to certain
investment restrictions imposed by the 1940 Act. If the Fund had been registered
under the 1940 Act during this time period, the Fund's performance might have
been adversely affected. Additional information is available from the Weitz
Funds at the address listed on the front cover.
+Return is for the period 6/1/83 through 12/31/83
++Return is for the period 1/1/99 through 9/30/99
3
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SEPTEMBER 30, 1999 - QUARTERLY REPORT
October 4, 1999
Dear Fellow Shareholder:
In the 3rd quarter of 1999, the Partners Value Fund declined by 2.7%
(after expenses), while the S&P 500 fell by 6.2%. This brings our gain for the
year to +15.2% vs. +5.4% for the S&P 500.
The table below shows the fund's returns over various intervals and
compares it to the performances of the S&P 500 (very large companies), the
Russell 2000 (an index of smaller company stocks), and our peer group of mutual
funds (according to Lipper Analytical Services). All of the performance data
assume reinvestment of dividends and are calculated after deducting expenses.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
PARTNERS VALUE FUND 32.0% 30.7% 27.0% 18.2%
S&P 500 Index 27.8 25.1 25.0 16.8
Russell 2000 Index 19.2 8.7 12.4 10.9
Average Growth and Income Fund 20.6 17.3 19.0 13.5
</TABLE>
PORTFOLIO REVIEW
Stocks in general have been weaker than the major market indexes would
indicate. More than half of the S&P 500 stocks are down for the year, the
average stock is down over 20% from its 1999 high, and so on. Our total return
through September has held up primarily because of strength in our media and
telecommunications stocks, but many of our financial service and real estate
stocks have been very weak. I don't think this is really bad news, because the
(presumably temporary) decline creates opportunity for us.
We went into the 3rd quarter with very high cash and other reserves (37%),
and during the quarter, our fund received net new funds from investors of over
$150 million. As the market weakened, we bought more of several of our favorite
stocks and added a few new companies to the portfolio. In addition to deploying
the new cash, we reduced our reserves to 27% of the portfolio.
I have no idea where the bottom of the current decline will be -- I would
not be surprised by a further correction of the excesses of the '90's -- but I
feel very good about the stocks in our portfolio. Here are some examples:
BANKS -- Greenpoint, Golden State, and Washington Mutual are large, profitable,
growing banks selling at about 7 times next year's earnings per share and buying
back their own stock.
4
<PAGE>
With modest earnings growth and some P/E multiple expansion, 50% total returns
over the next 2-3 years seem like a realistic possibility. Several other banks
in our portfolio have similar potential.
REAL ESTATE -- Host Marriott, Hilton, Forest City, and Catellus are all selling
at discounts to the current liquidation values of their underlying real estate,
and each is generating strong cash flows that are available for dividends,
acquisitions, and stock buybacks. Host Marriott is a real estate investment
trust (REIT) that owns luxury and full-service hotels such as Ritz Carlton, Four
Seasons, Marriott, and Hyatt. Their properties could probably be sold for $13-15
per share with one phone call, yet the stock sells for about $9. The $.84
dividend is well covered and provides a 9% current yield, and the underlying
value of the business is growing. The other three companies are not REITs and do
not pay large dividends, but the degrees of under-valuation are similar. In each
case, the expectation of a total return of 50% over the next 2-3 years does not
seem outlandish.
MORTGAGE BANKING -- Countrywide Credit has two parts to its business -- creating
mortgages and servicing mortgages. Creating mortgages, to finance a home
purchase or to refinance an existing mortgage, generates one-time origination
fee income. Servicing involves collecting monthly payments and dealing with
escrow accounts, and generates a stream of fee income over the life of the
mortgage. Higher interest rates generally mean lower mortgage creation activity,
thus lower origination fees, but it also means that existing mortgages remain
outstanding longer so the value of the servicing "annuity" rises. As interest
rates have risen in recent months, investors have focused on the negative side
of this equation and ignored the positive, so Countrywide has declined from over
$50 per share (where we had been sellers) to a recent $32. At this level,
Countrywide sells at under 9 times this year's expected earnings and we have
added significantly to our position in the low- to mid-30's. Other mortgage
bankers which focus on originations, such as New Century Financial and Resource
Bancshares Mortgage, are more adversely affected by higher rates, but both
stocks are so severely depressed that they ought to be good contributors to our
future results from today's prices.
OTHER FINANCIAL SERVICES -- Fears of higher interest rates, a slower economy, a
weaker stock market, etc. have depressed several others of our financial
services companies. United Asset Management is a holding company of investment
management businesses whose stock sells for about 50-60% of its value in a
takeover. It has operating problems that I believe are fixable, and it is buying
in its own stock very aggressively. Berkshire Hathaway has fallen from over
$80,000 per share to under $55,000 over the past 18 months, and now sells very
close to its adjusted book value and well below its intrinsic business value.
Redwood Trust sells at $13, while its portfolio has a liquidation value of $22,
and its management is very intelligent, motivated, and shareholder-oriented. It
has become a relatively small position in our portfolio since we own as many
shares as the company's by-laws permit and our portfolio has grown while its
price has shrunk. However, the risk-reward equation for Redwood and several
other smaller financial companies appears to be very favorable.
UTILITIES -- Western Resources (WR) is an electric utility that has been tangled
in a merger transaction with Kansas City Power and Light (KLT) for several
years. During this period, regulators and politicians have complicated the
process, and WR's earning power has been obscured by losses in its home security
subsidiary. Western also owns over $12 per WR share of ONEOK and Hanover
Compressor securities. We believe that the aggregate value of WR's
5
<PAGE>
assets is considerably greater than its current price of $21. In the meantime,
we receive a large dividend. Citizens Utilities is also a company with great
assets, selling at a significant discount to their underlying value, whose
management has announced plans to restructure the company in order to recognize
value. This is the same management that built and sold Century Communications
and Centennial Cellular, which have contributed a significant portion of our
fund's performance over the past several years.
CABLE TELEVISION AND CELLULAR TELEPHONE -- We have lost many of our cable and
cellular stocks to takeovers, and those that remain are not as cheap as they
used to be. Nevertheless, they are strong companies with good futures. Our
favorite is Liberty Media. It is a fabulous collection of programming and other
media assets, managed by John Malone. The recent FORBES cover story on Malone
does a great job of explaining our attraction to Liberty.
CASH RESERVES AND MARKET TIMING -- While our cash reserves are at new lows for
the year, at 27%, they are still high by mutual fund standards. Some define
market timing as holding cash positions of over 5-10%. I don't agree. From my
point of view, market timing is selling stocks that one likes at current prices
in hopes of being able to buy them back cheaper after an expected general market
decline. Holding cash in lieu of buying fully valued or over-priced stocks is
not market timing, in my opinion, but the essence of value investing. Whatever
your point of view on the semantics, shareholders should know that I will hold
cash at times.
OUTLOOK
As I have said regularly, there are many signs of speculative excess and
naive "investment" behavior that cry out for a harsh dose of reality in the form
of a market correction or bear market. However, it may not happen that way.
Individual stocks and groups of stocks have already taken terrible beatings for
seemingly minor offenses, such as "missing" a quarterly earnings estimate by a
penny per share. The supply of credit available for speculative or
over-leveraged business ventures has dried up considerably since the summer of
1998. Some investors are at least BEGINNING to raise questions about the
Internet Emperors' new clothes. Fears of recession and/or higher interest rates
have caused many stocks (such as the financial and real estate companies
mentioned above) to drop sharply in anticipation of bad news. Maybe this
"rolling correction" will take the place of an old-fashioned bear market. I
don't know.
What I do know is that over the past 25 years, buying good businesses at
reasonable prices has worked well. I feel very good about our portfolio's
potential for long-term returns, and I believe that these stocks will serve us
well over the years, as long as we have patience.
Sincerely,
/s/ WALLACE R. WEITZ
Wallace R. Weitz
President, Portfolio
Manager
6
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- --------------------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 71.8%
AUTO SERVICES -- 0.3%
173,000 Insurance Auto Auctions, Inc.* $ 2,024,761 $ 2,573,375
------------ ------------
BANKING -- 13.5%
38,000 Astoria Financial Corp. 1,411,130 1,168,500
713,200 Commercial Federal Corp. 15,717,714 13,996,550
250,000 East West Bancorp, Inc. 2,453,750 2,968,750
20,000 First Federal Bankshares, Inc. 200,000 182,500
154,000 First Place Financial Corp. 1,645,625 1,751,750
1,858,100 Golden State Bancorp, Inc.* 37,772,173 33,329,669
794,400 Greenpoint Financial Corp. 21,928,289 21,101,250
124,000 Local Financial Corp.* 1,254,618 1,147,000
619,700 North Fork Bancorporation, Inc. 11,814,728 12,084,150
25,000 Roslyn Bancorp, Inc. 430,000 446,875
70,000 South Jersey Financial Corp., Inc.* 759,006 1,010,625
100,000 Troy Financial Corp.* 994,436 1,081,250
390,500 U.S. Bancorp 12,483,649 11,788,219
108,000 Virginia Capital Bancshares, Inc. 1,387,313 1,606,500
818,900 Washington Mutual, Inc. 28,473,189 23,952,825
------------ ------------
138,725,620 127,616,413
------------ ------------
CABLE TELEVISION -- 4.5%
190,300 Adelphia Communications Corp. CL A* 7,926,191 11,192,019
453,000 Century Communications Corp. CL A* 2,639,636 20,668,125
32,000 Comcast Corp. Special CL A 138,680 1,276,000
135,200 MediaOne Group, Inc.* 5,227,455 9,235,850
------------ ------------
15,931,962 42,371,994
------------ ------------
CONSUMER PRODUCTS AND SERVICES -- 1.0%
200,000 American Classic Voyages Co.* 3,220,347 4,587,500
169,500 LabOne, Inc. 2,873,122 1,589,063
6,650 Lady Baltimore Foods, Inc. CL A* 212,725 410,638
814,500 Protection One, Inc.* 4,285,015 3,258,000
------------ ------------
10,591,209 9,845,201
------------ ------------
</TABLE>
7
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- --------------------- ------------ ------------
<C> <S> <C> <C>
FEDERAL AGENCIES -- 3.1%
40,000 Fannie Mae $ 759,888 $ 2,507,500
50,000 Freddie Mac 138,785 2,600,000
556,000 SLM Holding Corp. 19,832,093 23,908,000
------------ ------------
20,730,766 29,015,500
------------ ------------
FINANCIAL SERVICES -- 9.6%
1,001,000 Allied Capital Corp. 18,218,541 22,459,937
150,000 American Capital Strategies, Ltd. 2,550,000 2,775,000
74 Berkshire Hathaway, Inc. CL A* 846,038 4,070,000
14,841 Berkshire Hathaway, Inc. CL B* 31,491,053 27,544,896
21,036 Heller Financial, Inc. 567,451 473,310
751,000 Imperial Credit Industries, Inc.* 10,380,151 3,285,625
454,500 The PMI Group, Inc. 13,165,488 18,577,687
20,000 PS Group Holdings, Inc. 104,200 212,500
586,700 United Asset Management Corp. 13,158,484 11,293,975
60,000 United Panam Financial Corp.* 607,346 116,250
------------ ------------
91,088,752 90,809,180
------------ ------------
INFORMATION AND DATA PROCESSING -- 0.9%
317,400 Data Transmission Network Corp.* 7,158,866 7,915,162
175,000 Intelligent Systems Corp.* 164,183 415,625
------------ ------------
7,323,049 8,330,787
------------ ------------
LODGING AND GAMING -- 4.0%
145,000 Harrah's Entertainment, Inc.* 2,120,444 4,023,750
1,608,400 Hilton Hotels Corp. 17,751,013 15,882,950
203,000 Mandalay Resort Group* 2,601,554 4,009,250
1,085,000 Park Place Entertainment Corp.* 6,731,752 13,562,500
------------ ------------
29,204,763 37,478,450
------------ ------------
MEDIA AND ENTERTAINMENT -- 7.1%
1,305,000 AT&T Corp. - Liberty Media Group A* 26,253,398 48,448,125
57,165 Chris-Craft Industries, Inc.* 2,353,719 3,208,386
23,000 Daily Journal Corp.* 231,501 842,375
329,500 Valassis Communications, Inc.* 5,673,494 14,477,406
------------ ------------
34,512,112 66,976,292
------------ ------------
</TABLE>
8
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- --------------------- ------------ ------------
<C> <S> <C> <C>
MORTGAGE BANKING -- 5.6%
1,098,200 Countrywide Credit Industries, Inc. $ 39,254,605 $ 35,416,950
142,500 Franchise Mortgage Acceptance Co.* 1,312,758 1,015,313
781,000 Long Beach Financial Corp.* 10,960,618 12,398,375
97,200 New Century Financial Corp.* 931,950 1,713,150
322,000 Resource Bancshares Mtg. Grp., Inc. 4,096,395 1,599,938
85,882 WMF Group, Limited* 601,423 295,219
------------ ------------
57,157,749 52,438,945
------------ ------------
PRINTING SERVICES -- 0.4%
271,100 Mail-Well, Inc.* 3,676,975 3,761,512
------------ ------------
REAL ESTATE AND CONSTRUCTION -- 1.9%
1,089,900 Catellus Development Corp.* 14,594,016 12,806,325
246,200 Forest City Enterprises, Inc. CL A 5,137,132 5,493,337
10,000 Syntroleum Corp.* 31,917 70,625
------------ ------------
19,763,065 18,370,287
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 4.2%
400,000 Capital Automotive REIT 4,654,203 4,950,000
100,000 Dynex Capital, Inc. 1,803,500 675,000
407,830 Fortress Investment Corp. 8,037,274 6,933,110
245,500 Hanover Capital Mortgage Holdings, Inc. 3,709,440 982,000
24,000 Healthcare Financial Partners Units** 2,400,000 2,400,000
1,597,400 Host Marriott Corp. 14,746,785 15,175,300
190,000 Imperial Credit Commercial Mtg. Inv. Corp. 1,700,500 2,090,000
367,300 NovaStar Financial, Inc. 6,013,405 1,285,550
423,952 Redwood Trust, Inc. 9,571,344 5,484,879
------------ ------------
52,636,451 39,975,839
------------ ------------
RESTAURANTS -- 0.4%
239,100 CBRL Group, Inc. 3,816,426 3,706,050
------------ ------------
RETAIL DISCOUNT -- 0.8%
330,000 Consolidated Stores Corp.* 5,232,089 7,280,625
------------ ------------
</TABLE>
9
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
- --------------------- ------------ ------------
<C> <S> <C> <C>
TELECOMMUNICATIONS -- 9.7%
84,900 Alltel Corp. $ 2,046,370 $ 5,974,838
130,064 Centennial Cellular Corp. CL A* 1,877,622 5,909,783
236,850 Corecomm, Limited* 1,350,198 7,801,247
560,900 Telephone and Data Systems, Inc. 28,252,838 49,814,931
325,100 United States Cellular Corp.* 13,763,339 22,106,800
------------ ------------
47,290,367 91,607,599
------------ ------------
UTILITIES -- 4.8%
2,349,200 Citizens Utilities Co. CL B* 24,148,934 26,575,325
883,000 Western Resources, Inc. 22,474,617 18,874,125
------------ ------------
46,623,551 45,449,450
------------ ------------
Total Common Stocks 586,329,667 677,607,499
------------ ------------
WARRANTS -- 0.0%
399,500 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00 31,211 24,969
370,000 NovaStar Financial, Inc., Expiring 2/03/01 185,000 46,250
------------ ------------
216,211 71,219
------------ ------------
CONVERTIBLE PREFERRED STOCKS -- 0.4%
500,000 NovaStar Financial, Inc. 7% Pfd. Class B Cumulative 3,500,000 3,500,000
------------ ------------
<CAPTION>
FACE
AMOUNT
- ---------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 2.2%
$ 3,000,000 U.S. Treasury Note 5.50% 3/31/00 2,998,692 3,006,564
2,000,000 Fannie Mae 6.625% 7/12/00 2,000,000 2,013,078
10,000,000 Freddie Mac 5.0% 2/15/01 9,887,113 9,876,960
2,500,000 Federal Home Loan Bank 6.44% 11/28/05 2,502,463 2,491,722
3,000,000 Fannie Mae 6.56% 11/26/07 3,000,000 2,918,859
------------ ------------
Total U.S. Government and Agency Securities 20,388,268 20,307,183
------------ ------------
</TABLE>
10
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT COST VALUE
- --------------------- ------------ ------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES -- 26.4%
$26,381,547 Norwest U.S. Government Money Market Fund $ 26,381,547 $ 26,381,547
5,500,000 Freddie Mac Discount Note 10/20/99 5,484,986 5,485,078
9,100,000 U.S. Treasury Bill 10/28/99 9,068,594 9,070,653
34,000,000 U.S. Treasury Bill 11/04/99 33,856,160 33,857,098
23,000,000 U.S. Treasury Bill 11/12/99 22,883,007 22,881,389
25,000,000 Freddie Mac Discount Note 11/22/99 24,825,583 24,815,100
10,000,000 Freddie Mac Discount Note 12/09/99 9,904,933 9,901,100
30,807,000 Fannie Mae Discount Note 12/10/99 30,498,502 30,497,913
38,342,000 Fannie Mae Discount Note 2/14/00 37,548,236 37,554,034
50,000,000 Fannie Mae Discount Note 2/25/00 48,877,083 48,889,350
------------ ------------
Total Short-Term Securities 249,328,631 249,333,262
------------ ------------
Total Investments in Securities $859,762,777 950,819,163
============ ------------
Other Liabilities in Excess of Other Assets -- (0.8%) (7,747,558)
------------
Total Net Assets -- 100% $943,071,605
============
Net Asset Value Per Share $ 18.89
============
</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.
11
<PAGE>
WEITZ PARTNERS, INC.
PARTNERS VALUE FUND
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 its entire network within the past two years. 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. Because of recent growth and the need for certain increased
efficiencies and technological capabilities, Weitz has recently changed some of
its third party service providers. This process has involved obtaining
assurances about the Year 2000 readiness of the new 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.
12
