<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.
04/28/2000
513424
PARTNERS VALUE FUND
ANNUAL
REPORT
MARCH 31, 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>
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 March 31, 2000, calculated in accordance with SEC standardized
formulas.
<TABLE>
<CAPTION>
PERIOD ENDED PARTNERS II S&P 500
- ------------ ----------- -------
<S> <C> <C>
12/31/83+ 9.9% 4.2%
12/31/84 14.5 6.3
12/31/85 40.7 31.7
12/31/86 11.1 18.7
12/31/87 4.3 5.3
12/31/88 14.9 16.5
12/31/89 20.3 31.6
12/31/90 -6.3 -3.1
12/31/91 28.1 30.2
12/31/92 15.1 7.6
12/31/93 23.0 10.1
<CAPTION>
PERIOD ENDED PARTNERS VALUE S&P 500
- ------------ -------------- -------
<S> <C> <C>
12/31/94 -9.0% 1.3%
12/31/95 38.7 37.5
12/31/96 19.2 22.9
12/31/97 40.6 33.4
12/31/98 29.1 28.6
12/31/99 22.1 21.0
03/31/00++ -1.8 2.3
Cumulative 1,476.2 1,417.3
Average
Annual
Compound
Growth
(Since
inception
June 1,
1983) 17.8 17.5
</TABLE>
+Return is for the period 6/1/83 through 12/31/83
++Return is for the period 1/1/00 through 3/31/00
AVERAGE ANNUAL TOTAL RETURNS (FOR PERIODS ENDED MARCH 31, 2000)
<TABLE>
<CAPTION>
SINCE INCEPTION
1-YEAR 5-YEARS 10-YEARS (JUNE 1, 1983)
-------- -------- -------- ---------------
<S> <C> <C> <C> <C>
PARTNERS VALUE (AND PREDECESSOR PARTNERSHIP) 10.9% 27.0% 19.3% 17.8%
Standard & Poor's 500 Index 17.9% 26.7% 18.8% 17.5%
</TABLE>
2
<PAGE>
The chart below shows the change in the value of a $100,000 investment in the
Predecessor Partnership and the Fund for the period since inception (June,
1983), through March 31, 2000, as compared with the growth of the Standard &
Poor's 500 Index during the same period. The Standard & Poor's 500 Index is an
unmanaged index consisting of 500 companies. The information assumes
reinvestment of dividends and capital gains distributions. As indicated,
$100,000 originally invested in the Predecessor Partnership on June 1, 1983,
would have been valued at $1,576,239 on March 31, 2000.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PARTNERS VALUE FUND AND
PREDECESSOR PARTNERSHIP S&P 500
<S> <C> <C>
6/83 $100,000 $100,000
6/83 $100,190 $103,891
7/83 $99,719 $100,824
8/83 $101,614 $102,330
9/83 $107,426 $103,742
10/83 $108,876 $102,541
11/83 $111,718 $104,703
12/83 $109,900 $104,154
1/84 $114,703 $103,572
2/84 $109,759 $99,926
3/84 $111,680 $101,655
4/84 $112,238 $102,618
5/84 $109,690 $96,942
6/84 $111,566 $99,052
7/84 $110,238 $97,822
8/84 $120,104 $108,281
9/84 $122,650 $108,553
10/84 $123,840 $109,068
11/84 $125,054 $107,845
12/84 $125,835 $110,685
1/85 $131,649 $119,307
2/85 $138,192 $120,760
3/85 $146,290 $120,838
4/85 $145,910 $120,729
5/85 $151,980 $127,703
6/85 $155,065 $129,702
7/85 $157,267 $129,511
8/85 $157,644 $128,397
9/85 $158,527 $124,379
10/85 $169,656 $130,122
11/85 $178,580 $139,046
12/85 $177,051 $145,771
1/86 $177,582 $146,584
2/86 $189,054 $157,532
3/86 $197,788 $166,326
4/86 $195,573 $164,452
5/86 $199,465 $173,193
6/86 $199,804 $176,125
7/86 $194,769 $166,280
8/86 $198,528 $178,610
9/86 $195,729 $163,836
10/86 $199,174 $173,290
11/86 $199,313 $177,501
12/86 $196,704 $172,963
1/87 $206,598 $196,252
2/87 $210,813 $203,998
3/97 $216,041 $209,883
4/87 $212,390 $208,018
5/87 $212,857 $209,813
6/87 $215,113 $220,407
7/87 $220,233 $231,571
8/87 $223,735 $240,203
9/87 $224,205 $234,936
10/87 $205,372 $184,374
11/87 $202,024 $169,207
12/87 $205,162 $182,107
1/88 $211,768 $189,761
2/88 $216,639 $198,563
3/88 $217,224 $192,437
4/88 $220,243 $194,565
5/88 $221,498 $196,219
6/88 $226,482 $205,216
7/88 $228,339 $204,434
8/88 $228,248 $197,499
9/88 $232,653 $205,903
10/88 $234,165 $211,632
11/88 $232,315 $208,604
12/88 $235,730 $212,239
1/89 $244,971 $227,737
2/89 $245,951 $222,072
3/89 $251,239 $227,245
4/89 $262,796 $239,031
5/89 $264,820 $248,660
6/89 $269,084 $247,259
7/89 $278,233 $269,563
8/89 $281,711 $274,811
9/89 $284,951 $273,690
10/89 $280,620 $267,342
11/89 $281,237 $272,768
12/89 $283,585 $279,307
1/90 $268,016 $260,566
2/90 $270,401 $263,942
3/90 $270,158 $270,930
4/90 $269,239 $264,180
5/90 $282,082 $289,876
6/90 $283,267 $287,921
7/90 $278,253 $287,000
8/90 $263,033 $261,085
9/90 $254,879 $248,396
10/90 $244,174 $247,344
11/90 $257,481 $263,296
12/90 $265,719 $270,624
1/91 $282,698 $282,379
2/91 $297,907 $302,544
3/91 $304,580 $309,862
4/91 $308,205 $310,597
5/91 $317,050 $323,944
6/91 $306,492 $309,113
7/91 $314,338 $323,508
8/91 $320,185 $330,713
9/91 $325,372 $325,175
10/91 $326,836 $329,536
11/91 $317,064 $316,290
12/91 $340,385 $352,400
1/92 $344,368 $345,840
2/92 $349,534 $350,313
3/92 $349,884 $343,506
4/92 $351,144 $353,578
5/92 $355,077 $355,301
6/92 $356,107 $350,015
7/92 $359,882 $364,302
8/92 $352,972 $356,855
9/92 $357,914 $361,047
10/92 $354,550 $362,286
11/92 $378,730 $374,583
12/92 $391,786 $379,177
1/93 $403,383 $382,344
2/93 $411,088 $387,549
3/93 $418,652 $395,719
4/93 $407,181 $386,154
5/93 $420,089 $396,448
6/93 $430,087 $397,604
7/93 $437,054 $396,002
8/93 $465,200 $410,990
9/93 $461,525 $407,836
10/93 $477,540 $416,266
11/93 $470,854 $412,311
12/93 $481,897 $417,294
1/94 $487,776 $431,467
2/94 $468,693 $419,763
3/94 $445,899 $401,486
4/94 $447,778 $406,638
5/94 $461,030 $413,288
6/94 $450,573 $403,163
7/94 $460,018 $416,391
8/94 $471,439 $433,428
9/94 $458,042 $422,844
10/94 $462,716 $432,310
11/94 $444,211 $416,581
12/94 $438,388 $422,746
1/95 $453,910 $433,700
2/95 $473,035 $450,582
3/95 $477,273 $463,855
4/95 $487,074 $477,504
5/95 $509,272 $496,545
6/95 $530,728 $508,068
7/95 $550,806 $524,906
8/95 $574,487 $526,216
9/95 $585,718 $548,410
10/95 $575,970 $546,450
11/95 $601,664 $570,411
12/95 $607,860 $581,397
1/96 $634,319 $601,161
2/96 $647,783 $606,747
3/96 $645,207 $612,589
4/96 $649,714 $621,610
5/96 $661,948 $637,611
6/96 $668,914 $640,039
7/96 $628,581 $611,775
8/96 $654,865 $624,695
9/96 $678,456 $659,822
10/96 $680,798 $678,013
11/96 $715,453 $729,214
12/96 $724,288 $714,767
1/97 $750,497 $759,396
2/97 $770,295 $765,354
3/97 $737,047 $733,965
4/97 $745,175 $777,743
5/97 $819,389 $825,060
6/97 $844,105 $862,002
7/97 $892,680 $930,569
8/97 $882,200 $878,474
9/97 $940,728 $926,555
10/97 $960,237 $895,646
11/97 $963,862 $937,070
12/97 $1,018,501 $953,150
1/98 $1,034,656 $963,680
2/98 $1,079,578 $1,033,143
3/98 $1,187,666 $1,086,006
4/98 $1,233,007 $1,096,927
5/98 $1,208,390 $1,078,094
6/98 $1,260,227 $1,121,850
7/98 $1,275,324 $1,109,933
8/98 $1,131,192 $949,620
9/98 $1,147,033 $1,010,457
10/98 $1,184,888 $1,092,575
11/98 $1,248,029 $1,158,765
12/98 $1,314,592 $1,225,494
1/99 $1,371,294 $1,276,720
2/99 $1,372,412 $1,237,047
3/99 $1,421,911 $1,286,525
4/99 $1,516,998 $1,336,346
5/99 $1,521,629 $1,304,831
6/99 $1,555,606 $1,377,187
7/99 $1,542,783 $1,334,225
8/99 $1,495,498 $1,327,577
9/99 $1,513,931 $1,291,223
10/99 $1,611,707 $1,372,899
11/99 $1,593,274 $1,400,859
12/99 $1,604,494 $1,483,312
1/00 $1,524,959 $1,408,795
2/00 $1,445,937 $1,382,151
3/00 $1,576,239 $1,517,279
</TABLE>
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 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.
3
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
MARCH 31, 2000 - ANNUAL REPORT
April 9, 2000
Dear Fellow Shareholder:
The stock market was very volatile in the first quarter of 2000, but for
all the sound and fury, the Partners Value Fund's total return was a tame -1.8%.
During this same period, the S&P 500 rose +2.3%; a handful of biotechnology
stocks carried the Russell 2000 to a +7.1% gain; and the semi-"old economy" Dow
Jones Industrials fell by -4.7%.
The table below is the familiar long-term comparison of our fund with the
S&P 500 Index of very large companies, the Russell 2000, which is a proxy for
smaller-capitalization stocks, and our peer group of mutual funds (according to
Lipper Analytical Services). (All return numbers assume reinvestment of
dividends and are AFTER deducting fees and expenses.)
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
PARTNERS VALUE FUND 10.9% 28.8% 27.0% 19.3%
S&P 500 Index 17.9 27.4 26.7 18.8
Russell 2000 Index 37.3 17.8 17.2 14.4
Average Growth and Income Fund 14.2 19.0 20.3 15.3
</TABLE>
The performance gap between the few technology favorites and the many
also-rans has reached epic proportions. One analyst has calculated that current
valuation levels are so far from market norms that they should occur only once
every 285 BILLION years. My last several letters have dwelled on the phenomenon
of the "two-tier" market, and I am sure shareholders are tired of statistics
showing how skewed the stock market has become--I know I am tired of explaining
why we don't own the stocks that have been rising so explosively. This letter
will discuss what we are doing while waiting for the world to regain its sanity,
but for those who just want the bottom line, I offer this summary of my take on
the current state of affairs:
- there is a speculative bubble in technology stocks that virtually
guarantees large losses for some "investors;"
- many low-tech and non-tech stocks have become VERY cheap because they
have been sold to raise cash to buy the bubble stocks;
- when the bubble breaks, all stocks will probably suffer for a while, but I
believe that from today's levels, our stocks will bring us good returns
over the next few years.
4
<PAGE>
BENCHMARKS--IN AN INSANE STOCK MARKET, HOW SHOULD WE MEASURE SUCCESS?
In recent years, the world has become fascinated with mutual fund
performance. Investors, consultants, journalists, and mutual fund companies
themselves have all contributed to an unhealthy fixation on relative
performance--tracking quarterly, monthly and even weekly fund rankings. Tens of
billions of dollars flow from the under-performing funds to the hot ones. The
result is a "perform or die" mindset among many portfolio managers and their
bosses. Many investment professionals publicly admit to buying stocks that they
do not understand and that they believe to be grossly over-valued, because they
feel that is the only way they can "make their benchmark" returns. Everyone
seems to be buying "what is working," so expensive stocks go up BECAUSE THEY
HAVE BEEN GOING UP.
Mutual funds are required to pick a "reasonable" benchmark and to compare
their fund's performance to that benchmark. We have used the S&P 500 over the
years because we think it has been fairly representative of the universe of
stocks in which we tend to invest. Recently, as the arithmetic of this
capitalization-weighted index has caused it to be distorted by the enormous
growth of a few of its components, it has been tempting to seek out a different
standard. However, as Warren Buffett puts it, this would be like shooting an
arrow and then painting a target around the spot where it lands. We make
reference to other indices to illustrate points and to give our investors a
frame of reference, but whatever the benchmark, to invest irresponsibly just to
keep up with some market index, would be to let the benchmark tail wag the
investment dog.
Good RELATIVE performance is nice. It is fun to beat "the market" and to
out-perform other funds. The resulting attention is flattering and it is good
for business. However, at our firm, we have always been much more concerned with
ABSOLUTE performance. We know that when stocks go down, clients can't EAT
relative performance, and since virtually all of our analysts' and portfolio
managers' investable net worth is invested in our own funds, we all have a
personal interest in capital preservation and positive returns. So, we are going
to focus on the stocks that we think will make us all wealthier over the next
several years, not the technology companies that drive the S&P 500. As a result,
our portfolio may be out of step with its "benchmark" for some time.
OUR GAME PLAN
As an ocean of cash has been drawn into the technology bubble stocks, lots
of very good companies have been "beached." Granted, some of the stocks that
have been left behind are the "perma-cheaps"--poor businesses whose stocks
always seem to be statistically cheap but
5
<PAGE>
that tend to be "value traps." However, many are strong, growing companies that
are selling at big discounts to their private market values. Our plan is to
continue to buy these good companies and to wait for someone to care.
Before we talk about specific stocks, let's consider an example that shows
how a slowly growing company at a very attractive price can be a better
investment than an exciting growth company selling at a very inflated price.
Suppose you have $100 to invest and have a choice between two companies:
- Hare.com will earn $1 in the first year you own it, sells at 100 times
earnings, or $100,and earnings are expected to grow at a 25% rate in years
2 through 10;
- Tortoise, Inc. will earn $20 in year one, sells at 5 times earnings, or
$100, and earnings are expected to grow at 8% through year 10.
After 10 years, Hare.com earnings will have grown by 645% to $7.45 and its
owner will have collected $33 in earnings (assuming no R&D or capital
expenditures). If its stock sells at a generous 50 time earnings in year 10, or
$373, its price plus accumulated earnings would equal $406.
During the same 10-year period, Tortoise earnings will have merely
doubled, to $40, but cumulative owner earnings would have been $290. If the
company sells at a modest 8 times earnings, or $320, price plus cumulative
profits would equal $610.
In this grossly over-simplified example, $100 invested in the dull, slow
investment grows to $610, while the exciting tech company turns $100 into $406.
In the real world, it is very unlikely that any company could actually grow at
25% per year for 10 years. In fact, we could adjust the assumptions of our
example in a number of ways, but in my opinion, the more realistic we made the
models, the more likely it would be that Tortoise, Inc. would turn out to be the
superior investment. The reason lies in the beginning P/E ratios and the
expected growth rates. Hare.com clearly has a better business, and it is worth a
higher multiple of earnings than Tortoise, but $1 of Hare.com earnings is NOT
worth 20 TIMES as much as $1 of Tortoise earnings. This is the kind of valuation
disconnect we see in today's market.
As for our stocks, there were very few name changes in our portfolio
during the quarter. For the most part, we tried to be opportunistic about adding
to positions when stocks were particularly weak. Berkshire Hathaway, Countrywide
Credit, Host Marriott, Washington
6
<PAGE>
Mutual, and others were up for the quarter but suffered sharp dips along the
way. Others dropped very sharply and have only partially recovered, such as
Valassis ($42-25-33), Greenpoint ($23-15-20), and Premier Parks ($29-18-21). In
each case, as the stocks declined, we rechecked our assumptions and valuations
and bought more shares, just as we did with cable, cellular, and financial
companies in the '90s. This "averaging down" approach is in sharp contrast to
the fashion of the day--"momentum" investing, but it has worked very well for us
over the years.
Volatility in the first week of April was particularly intense. One day
the Dow Industrials rose 300 points while the NASDAQ composite fell 300. The
next day, both indexes fell about 500 points during the day and recovered to
close almost unchanged. Maybe this is the beginning of the end of the tech stock
bubble--maybe not. Speculative habits die hard. In any event, we will continue
to buy the cheap and sell the expensive and try not to get caught up in the
emotions of the day.
Sincerely,
/s/ Wallace R. Weitz
Wallace R. Weitz
President, Portfolio
Manager
7
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
COMMON STOCKS -- 84.2%
AUTO SERVICES -- 0.2%
173,000 Insurance Auto Auctions, Inc.* $ 2,024,761 $ 2,919,375
-------------- --------------
BANKING -- 20.5%
436,000 Astoria Financial Corp. 11,045,670 12,371,500
98,700 Bank United Corp. CL A 2,525,117 3,115,219
874,200 Commercial Federal Corp. 18,004,781 14,533,575
82,500 Dime Bancorp, Inc. 1,174,594 1,526,250
213,000 East West Bancorp, Inc. 2,079,125 2,356,313
20,000 First Federal Bankshares, Inc. 200,000 155,000
42,000 First Place Financial Corp. 467,250 420,000
2,978,400 Golden State Bancorp, Inc.* 53,079,624 44,489,850
2,572,700 Greenpoint Financial Corp. 58,592,833 50,489,237
124,000 Local Financial Corp.* 1,254,619 1,061,750
2,304,700 North Fork Bancorporation, Inc. 40,770,119 41,196,512
100,000 Troy Financial Corp.* 994,436 1,025,000
1,549,600 U.S. Bancorp 35,213,750 33,897,500
108,000 Virginia Capital Bancshares, Inc. 1,387,313 1,579,500
1,752,280 Washington Mutual, Inc. 51,703,190 46,435,420
-------------- --------------
278,492,421 254,652,626
-------------- --------------
CABLE TELEVISION -- 3.8%
961,495 Adelphia Communications Corp. CL A* 35,071,211 47,113,255
-------------- --------------
CONSUMER PRODUCTS AND SERVICES -- 1.9%
185,000 American Classic Voyages Co.* 2,991,019 4,659,688
6,650 Lady Baltimore Foods, Inc. CL A* 212,725 332,500
832,000 Premier Parks, Inc.* 19,101,800 17,472,000
872,000 Protection One, Inc.* 4,389,808 1,798,500
-------------- --------------
26,695,352 24,262,688
-------------- --------------
</TABLE>
The accompanying notes form an integral part of these financial statements.
8
<PAGE>
WEITZ SERIES FUND, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
FEDERAL AGENCIES -- 3.4%
40,000 Fannie Mae $ 759,888 $ 2,257,500
50,000 Freddie Mac 138,785 2,209,375
1,126,300 SLM Holding Corp. 40,644,712 37,519,869
-------------- --------------
41,543,385 41,986,744
-------------- --------------
FINANCIAL SERVICES -- 10.8%
1,001,000 Allied Capital Corp. 18,218,541 17,454,938
150,000 American Capital Strategies, Ltd. 2,550,000 3,806,250
292 Berkshire Hathaway, Inc. CL A* 11,043,944 16,702,400
30,849 Berkshire Hathaway, Inc. CL B* 58,598,844 56,145,180
751,000 Imperial Credit Industries, Inc.* 10,380,151 3,379,500
454,500 The PMI Group, Inc. 13,165,488 21,560,344
855,200 United Asset Management Corp. 17,812,653 14,805,650
60,000 United Panam Financial Corp.* 607,346 78,750
-------------- --------------
132,376,967 133,933,012
-------------- --------------
INFORMATION AND DATA PROCESSING -- 1.0%
382,400 Data Transmission Network Corp.* 8,500,741 10,874,500
175,000 Intelligent Systems Corp.* 164,183 1,640,625
-------------- --------------
8,664,924 12,515,125
-------------- --------------
HEALTH CARE -- 0.2%
185,200 LabOne, Inc. 3,007,384 1,226,950
41,000 Lincare Holdings, Inc.* 1,014,735 1,163,375
-------------- --------------
4,022,119 2,390,325
-------------- --------------
LODGING AND GAMING -- 6.6%
2,108,200 Extended Stay America, Inc.* 13,836,739 15,811,500
145,000 Harrah's Entertainment, Inc.* 2,120,444 2,691,563
3,932,000 Hilton Hotels Corp. 36,635,773 30,473,000
619,000 Mandalay Resort Group* 8,701,313 10,445,625
2,002,400 Park Place Entertainment Corp.* 16,467,700 23,152,750
-------------- --------------
77,761,969 82,574,438
-------------- --------------
</TABLE>
The accompanying notes form an integral part of these financial statements.
9
<PAGE>
WEITZ SERIES FUND, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
MEDIA AND ENTERTAINMENT -- 7.2%
973,900 AT&T Corp. -- Liberty Media Group A* $ 18,795,858 $ 57,703,575
58,879 Chris-Craft Industries, Inc.* 2,353,719 3,749,856
51,600 Daily Journal Corp.* 1,138,938 1,612,500
787,300 Valassis Communications, Inc.* 18,340,392 26,226,931
-------------- --------------
40,628,907 89,292,862
-------------- --------------
MORTGAGE BANKING -- 4.9%
2,174,200 Countrywide Credit Industries, Inc. 67,264,031 59,246,950
56,100 New Century Financial Corp.* 509,438 557,494
322,000 Resource Bancshares Mtg. Grp., Inc. 4,096,395 1,267,875
87,982 WMF Group, Limited* 606,638 461,906
-------------- --------------
72,476,502 61,534,225
-------------- --------------
PRINTING SERVICES -- 1.0%
1,400,800 Mail-Well, Inc.* 15,234,962 12,169,450
-------------- --------------
REAL ESTATE AND CONSTRUCTION -- 2.3%
1,513,500 Catellus Development Corp.* 19,496,929 20,999,812
246,200 Forest City Enterprises, Inc. CL A 5,137,132 7,232,125
-------------- --------------
24,634,061 28,231,937
-------------- --------------
REAL ESTATE INVESTMENT TRUSTS -- 6.4%
400,000 Capital Automotive REIT 4,654,203 4,800,000
100,000 Dynex Capital, Inc.* 1,803,500 562,500
457,830 Fortress Investment Corp. 8,337,081 6,123,476
215,500 Hanover Capital Mortgage Holdings, Inc. 3,192,299 794,656
20,935 Healthcare Financial Partners Units** 2,088,266 2,093,500
6,319,500 Host Marriott Corp. 56,988,534 56,085,563
393,300 NovaStar Financial, Inc.* 6,103,300 1,376,550
500,052 Redwood Trust, Inc. 10,609,774 7,407,020
-------------- --------------
93,776,957 79,243,265
-------------- --------------
RESTAURANTS -- 0.2%
239,100 CBRL Group, Inc. 3,816,426 2,391,000
-------------- --------------
</TABLE>
The accompanying notes form an integral part of these financial statements.
10
<PAGE>
WEITZ SERIES FUND, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
SHARES
OR UNITS COST VALUE
--------- -------------- --------------
<C> <S> <C> <C>
RETAIL DISCOUNT -- 1.2%
1,309,100 Consolidated Stores Corp.* $ 18,925,158 $ 14,891,012
-------------- --------------
SATELLITE SERVICES -- 0.7%
556,200 Orbital Sciences Corp.* 7,575,833 8,343,000
-------------- --------------
TELECOMMUNICATIONS -- 6.3%
324,192 Centennial Communications Corp.* 1,674,341 7,881,918
220,775 Corecomm, Limited* 675,989 9,714,100
503,400 Telephone and Data Systems, Inc. 26,105,126 55,877,400
61,100 United States Cellular Corp.* 3,347,245 4,338,100
-------------- --------------
31,802,701 77,811,518
-------------- --------------
UTILITIES -- 5.6%
2,781,200 Citizens Utilities Co. CL B* 29,565,091 45,542,150
1,525,200 Western Resources, Inc. 34,082,053 24,117,225
-------------- --------------
63,647,144 69,659,375
-------------- --------------
Total Common Stocks 979,171,760 1,045,915,232
-------------- --------------
WARRANTS -- 0.0%
399,500 Hanover Capital Mtg. Holdings, Inc., Expiring 9/15/00* 31,211 6,242
370,000 NovaStar Financial, Inc., Expiring 2/03/01* 185,000 370
-------------- --------------
216,211 6,612
-------------- --------------
CONVERTIBLE PREFERRED STOCKS -- 0.2%
500,000 NovaStar Financial, Inc. 7% Pfd. Class B Cumulative* 3,312,167 2,840,000
-------------- --------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
---------
<C> <S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 1.4%
$2,000,000 Fannie Mae 6.625% 7/12/00 2,000,000 2,003,018
10,000,000 Freddie Mac 5.0% 2/15/01 9,927,017 9,865,940
2,500,000 Federal Home Loan Bank 6.44% 11/28/05 2,502,296 2,426,577
3,000,000 Fannie Mae 6.56% 11/26/07 3,000,000 2,845,248
-------------- --------------
Total U.S. Government and Agency Securities 17,429,313 17,140,783
-------------- --------------
</TABLE>
The accompanying notes form an integral part of these financial statements.
11
<PAGE>
WEITZ SERIES FUND, INC. -- PARTNERS VALUE FUND
SCHEDULE OF INVESTMENTS IN SECURITIES, CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT COST VALUE
--------- -------------- --------------
SHORT-TERM SECURITIES -- 14.0%
<C> <S> <C> <C>
$97,566,101 Wells Fargo Government Money Market Fund $ 97,566,101 $ 97,566,101
1,500,000 U.S. Treasury Bill 04/06/00 1,498,902 1,499,347
3,500,000 Federal Home Loan Bank Discount Note 04/19/00 3,490,493 3,490,683
44,500,000 U.S. Treasury Bill 05/04/00 44,285,113 44,279,681
27,000,000 U.S. Treasury Bill 08/24/00 26,363,812 26,379,027
-------------- --------------
Total Short-Term Securities 173,204,421 173,214,839
-------------- --------------
Total Investments in Securities $1,173,333,872 1,239,117,466
==============
Other Assets Less Liabilities -- 0.2% 2,511,017
--------------
Total Net Assets -- 100% $1,241,628,483
==============
Net Asset Value Per Share $ 18.75
==============
</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.
The accompanying notes form an integral part of these financial statements.
12
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<S> <C>
Assets:
Investment in securities at value (cost $1,173,333,872) $1,239,117,466
Cash 1,620,545
Accrued interest and dividends receivable 3,238,049
Receivable for fund shares sold 499,142
Other 10,495
--------------
Total assets 1,244,485,697
--------------
Liabilities:
Due to adviser 1,078,459
Payable for securities purchased 1,247,615
Payable for fund shares redeemed 197,357
Other expenses 333,783
--------------
Total liabilities 2,857,214
--------------
Net assets applicable to outstanding capital stock $1,241,628,483
==============
Net assets represented by:
Paid-in capital (note 4) 1,124,502,382
Accumulated undistributed net investment income 5,096,828
Accumulated undistributed net realized gains 46,245,679
Net unrealized appreciation of investments 65,783,594
--------------
Total representing net assets applicable to
shares outstanding $1,241,628,483
==============
Net asset value per share of outstanding capital stock
(66,211,926 shares outstanding) $ 18.75
==============
</TABLE>
The accompanying notes form an integral part of these financial statements.
13
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEAR ENDED
MARCH 31, 2000 DEC. 31, 1999
-------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividends $ 5,248,634 $ 8,728,926
Interest 3,271,197 11,937,500
------------ ------------
Total investment income 8,519,831 20,666,426
------------ ------------
Expenses:
Investment advisory fee 2,873,594 7,343,521
Administrative fee 377,611 1,101,528
Custody fees 22,302 59,711
Directors fees 9,882 6,120
Dividends on securities sold short -- 8,800
Other expenses 136,216 594,135
------------ ------------
Total expenses 3,419,605 9,113,815
------------ ------------
Net investment income 5,100,226 11,552,611
------------ ------------
Realized and unrealized gain on investments:
Net realized gain on securities $25,874,915 $62,667,902
Net realized gain on securities sold
short -- 207,652
Net realized gain (loss) on options
written 45,648 (1,117,814)
----------- -----------
Net realized gain 25,920,563 61,757,740
Net unrealized appreciation
(depreciation) of investments (50,042,071) 45,164,375
------------ ------------
Net realized and unrealized gain
(loss) on investments (24,121,508) 106,922,115
------------ ------------
Net increase (decrease) in net
assets resulting from operations $(19,021,282) $118,474,726
============ ============
</TABLE>
The accompanying notes form an integral part of these financial statements.
14
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED DECEMBER 31,
MARCH 31, -----------------------------
2000 1999 1998
------------------ -------------- ------------
<S> <C> <C> <C>
Increase in net assets:
From operations:
Net investment income $ 5,100,226 $ 11,552,611 $ 651,484
Net realized gain 25,920,563 61,757,740 22,139,768
Net unrealized appreciation (depreciation) (50,042,071) 45,164,375 25,105,776
-------------- -------------- ------------
Net increase (decrease) in net assets
resulting from operations (19,021,282) 118,474,726 47,897,028
-------------- -------------- ------------
Distributions to shareholders from:
Net investment income (11,435,772) (815,990) (1,206,568)
Net realized gains (41,294,888) (22,157,574) (15,264,855)
-------------- -------------- ------------
Total distributions (52,730,660) (22,973,564) (16,471,423)
-------------- -------------- ------------
Capital share transactions:
Proceeds from sales 301,732,773 959,615,383 145,291,184
Payments for redemptions (179,222,698) (222,923,670) (31,930,637)
Reinvestment of distributions 47,496,370 18,849,624 13,808,275
-------------- -------------- ------------
Total increase from capital share
transactions 170,006,445 755,541,337 127,168,822
-------------- -------------- ------------
Total increase in net assets 98,254,503 851,042,499 158,594,427
-------------- -------------- ------------
Net assets:
Beginning of period 1,143,373,980 292,331,481 133,737,054
-------------- -------------- ------------
End of period (including undistributed investment
income of $5,096,828, $11,432,373 and $695,750,
respectively) $1,241,628,483 $1,143,373,980 $292,331,481
============== ============== ============
</TABLE>
The accompanying notes form an integral part of these financial statements.
15
<PAGE>
WEITZ PARTNERS INC. -- PARTNERS VALUE FUND
FINANCIAL HIGHLIGHTS
The following financial information provides selected data for a share of the
Partners Value Fund outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEAR ENDED DECEMBER 31,
MARCH 31, ------------------------------------------------------
2000** 1999 1998 1997 1996 1995
------------ ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 20.02 $ 17.68 $ 15.45 $ 11.52 $ 10.38 $ 8.28
-------- -------- -------- -------- -------- --------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.08 0.21 0.06 0.13 0.06 0.08
Net gains or losses on securities
(realized and unrealized) (0.43) 3.42 4.00 4.33 1.93 3.11
-------- -------- -------- -------- -------- --------
Total from investment operations (0.35) 3.63 4.06 4.46 1.99 3.19
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.20) (0.05) (0.16) -- (0.06) (0.24)
Distributions from realized gains (0.72) (1.24) (1.67) (0.53) (0.79) (0.85)
-------- -------- -------- -------- -------- --------
Total distributions (0.92) (1.29) (1.83) (0.53) (0.85) (1.09)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 18.75 $ 20.02 $ 17.68 $ 15.45 $ 11.52 $ 10.38
======== ======== ======== ======== ======== ========
TOTAL RETURN (1.8%)+ 22.1% 29.1% 40.6% 19.2% 38.7%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ($000) $1,241,628 $1,143,374 $292,331 $133,737 $94,846 $73,781
Ratio of expenses to average net
assets 1.19%* 1.24% 1.25% 1.24% 1.23% 1.27%
Ratio of net investment income to
average net assets 1.77%* 1.57% 0.34% 1.11% 0.51% 0.82%
Portfolio turnover rate 5% 29% 36% 30% 37% 51%
</TABLE>
*Annualized
+Not Annualized
**In the current period, the Fund changed its fiscal year end from December 31
to March 31.
The accompanying notes form an integral part of these financial statements.
16
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(1) ORGANIZATION AND BUSINESS CHANGES
Weitz Partners, Inc. (the "Company"), is registered under the Investment
Company Act of 1940 as an open-end management investment company. At
present, there is only one series authorized by the Company, the Partners
Value Fund (the "Fund"). The accompanying financial statements present the
financial position and results of operations of the Fund. In the current
period, the Fund changed its fiscal year end from December 31 to March 31.
The Fund's investment objective is capital appreciation. The Fund invests
principally in common stocks, preferred stocks and a variety of securities
convertible into equity such as rights, warrants, preferred stocks and
convertible bonds. The following accounting policies are in accordance with
accounting policies generally accepted in the investment company industry.
(2) SIGNIFICANT ACCOUNTING POLICIES
(a) VALUATION OF INVESTMENTS
Investments are carried at value determined using the following valuation
methods:
- Securities traded on a national or regional securities exchange
and over-the-counter securities traded on the NASDAQ national
market are valued at the last sales price; if there were no sales
on that day, securities are valued at the mean between the latest
available and representative bid and ask prices.
- Securities not listed on an exchange are valued at the mean
between the latest available and representative bid and ask
prices.
- The value of certain debt securities for which market quotations
are not readily available may be based upon current market prices
of securities which are comparable in coupon, rating and maturity
or an appropriate matrix utilizing similar factors.
- The value of securities for which market quotations are not
readily available, including restricted and not readily marketable
securities, is determined in good faith under the supervision of
the Fund's Board of Directors.
When the Fund writes a call option, an amount equal to the premium
received by the Fund is included in the Fund's statement of assets and
liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option
written. The current market value of a traded option is the last sales
price on the
17
<PAGE>
principal exchange on which such option is traded, or, in the absence of
such sale, the latest ask quotation. When an option expires on its
stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of a closing
purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. When
a call option is exercised, the Fund realizes a gain or loss from the
sale of the underlying security and the proceeds from such sale are
increased by the premium originally received.
The risk in writing a call option is that the Fund gives up the
opportunity of profit if the market price of the security increases. The
Fund also has the additional risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist.
(b) FEDERAL INCOME TAXES
Since the Fund's policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders, no provision for
income or excise taxes is required.
Net investment income and net realized gains may differ for financial
statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from
their ultimate characterization for Federal income tax purposes. Also,
due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or
realized gains were recorded by the Fund.
(c) SECURITY TRANSACTIONS AND DISTRIBUTIONS TO SHAREHOLDERS
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Income dividends and dividends on short
positions are recorded on the ex-dividend date. Interest, including
amortization of discount and premium, is accrued as earned. Distributions
to shareholders are recorded on the ex-dividend date.
Realized gains or losses are determined by specifically identifying the
issue sold.
(d) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
18
<PAGE>
(e) SECURITIES SOLD SHORT
The Fund periodically engages in selling securities short, which
obligates the Fund to replace a security borrowed by purchasing the same
security at the current market value. The Fund would incur a loss if the
price of the security increases between the date of the short sale and
the date on which the Fund replaces the borrowed security. The Fund would
realize a gain if the price of the security declines between those dates.
The Fund is required to establish a margin account with the broker
lending the security sold short. While the short sale is outstanding, the
broker retains the proceeds of the short sale. The Fund will place in a
segregated account a sufficient amount of cash and securities as required
by applicable federal securities regulations in order to cover the
transaction.
(3) RELATED PARTY TRANSACTIONS
The Fund has retained Wallace R. Weitz & Company (the "Adviser") as its
exclusive investment adviser. In addition, the Company has an agreement with
Weitz Securities, Inc. (the "Distributor") to act as distributor for the
Fund's shares. Certain officers and directors of the Company are also
officers and directors of the Adviser and the Distributor.
Under the terms of a management and investment advisory agreement, the
Adviser receives an investment advisory fee equal to 1% per annum of the
Fund's average daily net asset value. The Adviser has agreed to reimburse
the Fund up to the amount of advisory fees paid to the extent that total
expenses exceed 1.50% of the Fund's average annual daily net asset value.
The expenses incurred by the Fund did not exceed the percentage limitation
during the three months ended March 31, 2000 or the year ended December 31,
1999.
Under the terms of an administration agreement, the Adviser provides certain
services including the transfer of shares, disbursement of dividends, fund
accounting and related administrative services of the Fund. During the three
months ended March 31, 2000 and the year ended December 31, 1999, the fee
was calculated at an average annual rate of 0.13% and 0.15%, respectively,
of the Fund's average daily net assets.
The Distributor received no compensation for distribution of the Fund's
shares.
(4) CAPITAL STOCK
The Company is authorized to issue a total of 1,000,000,000 shares of common
stock with a par value of $.00001 per share. One hundred fifty million of
these shares have been authorized by the Board of Directors to be issued by
the Fund. The Board of Directors may authorize additional shares in series
without shareholder approval. Each share of stock will have a pro rata
interest in the assets of the Fund to which the stock of that series relates
and will have no other interest in the assets of any other series.
19
<PAGE>
Transactions in the capital stock of the Fund are summarized as follows:
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEAR ENDED DECEMBER 31,
MARCH 31, 2000 1999 1998
--------------- ----------- ----------
<S> <C> <C> <C>
Transactions in shares:
Shares issued......................... 16,612,167 51,129,522 8,950,496
Shares redeemed....................... (10,024,543) (11,692,545) (2,006,948)
Reinvested dividends.................. 2,526,403 1,122,147 940,686
----------- ----------- ----------
9,114,027 40,559,124 7,884,234
=========== =========== ==========
</TABLE>
(5) SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of
the Fund, other than short-term securities, aggregated $259,173,740 and
$47,725,384, respectively. The cost of investments for Federal income tax
purposes is $1,173,390,042. At March 31, 2000, the aggregate gross
unrealized appreciation and depreciation, based on cost for Federal income
tax purposes, were $166,999,448 and $101,272,024 respectively.
Transactions relating to covered call options during the three months ended
March 31, 2000, and the year ended December 31, 1999, are summarized as
follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
MARCH 31, 2000 DECEMBER 31, 1999
------------------------- -------------------------
NUMBER OF NUMBER OF
CONTRACTS PREMIUM CONTRACTS PREMIUM
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Options outstanding, beginning of period.... 200 $ 45,648 880 $ 542,361
Options written............................. -- -- 740 291,190
Options exercised........................... -- -- (720) (407,185)
Options expired............................. (200) (45,648) (200) (99,823)
Options closed.............................. -- -- (500) (280,895)
-------- ---------- -------- ----------
Options outstanding, end of period.......... -- $ -- 200 $ 45,648
======== ========== ======== ==========
</TABLE>
20
<PAGE>
(6) AFFILIATED ISSUERS
Affiliated issuers, as defined under the Investment Company Act of 1940, are
those in which the Fund's holdings of an issuer represent 5% or more of the
outstanding voting securities of the issuer. A summary of the Fund's
holdings in the securities of such issuers is set forth below:
<TABLE>
<CAPTION>
NUMBER OF
SHARES HELD VALUE DIVIDEND REALIZED
NAME OF ISSUER MARCH 31, 2000 MARCH 31, 2000 INCOME GAINS/(LOSSES)
- ----------------------------------------- --------------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
NovaStar Financial, Inc.................. 393,300 $ 1,376,550 $ -- $ --
NovaStar Financial, Inc., Warrants
Expiring 2/03/01........................ 370,000 370 -- --
NovaStar Financial, Inc., 7% Pfd.
Class B Cumulative...................... 500,000 2,840,000 -- --
Redwood Trust, Inc....................... 500,052 7,407,020 175,018 --
------------ ---------- --------
$ 11,623,940 $ 175,018 $ --
============ ========== ========
</TABLE>
(7) LINE OF CREDIT
A $40,000,000 unsecured line of credit has been made available to the
Hickory and Value Funds of the Weitz Series Fund, Inc. and to the Partners
Value Fund of the Weitz Partners, Inc. (collectively, the "Funds").
Borrowings under this arrangement bear interest, at the option of the Funds,
at either (i) the prime rate of interest as announced by the lending bank
(but not less than the Federal Funds Base Rate plus 0.50%) or (ii) the
Federal Funds Base Rate plus 0.75%. The line of credit is available until
December 14, 2000 when all outstanding advances are to be repaid. As
compensation for holding available the lending commitment, the Funds will
pay a 0.15% per annum fee of the maximum commitment payable in arrears on
the last day of each quarter. The fee will initially be paid by the Hickory
Fund until such time as the Value Fund and/or the Partners Value Fund have a
need to access the line of credit at which time the allocation methodology
will be re-evaluated.
21
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders
Weitz Partners, Inc. - Partners Value Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments in securities, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Weitz Partners,
Inc. - Partners Value Fund (the "Fund") at March 31, 2000, and the results of
its operations, the changes in its net assets and the financial highlights for
the three months then ended and the year ended December 31, 1999, in conformity
with accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at March 31, 2000, by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above. The
financial statements for the year ended December 31, 1998, including the
financial highlights for each of the four years in the period then ended, were
audited by other independent accountants whose reports dated January 15, 1999,
and January 19, 1996, expressed an unqualified opinion on those financial
statements.
PricewaterhouseCoopers LLP
New York, New York
April 20, 2000
22
<PAGE>
(This page has been left blank intentionally.)
23
<PAGE>
WEITZ PARTNERS, INC. -- PARTNERS VALUE FUND
SHAREHOLDER INFORMATION
ANNUAL SHAREHOLDER INFORMATION MEETING Please plan to join us on Wednesday, May
24, at 4:30 at the Omaha Marriott in the Regency area of West Omaha. This
meeting is a good opportunity to meet your fellow shareholders and the client
service people you have talked to on the phone. There will be no official
business meeting, but Wally, Rick and Tom will take shareholder questions until
about 5:45.
This year we are going to experiment with taking questions IN WRITING before and
during the meeting to try to combine questions on similar topics and to try to
make sure we get to everyone's questions, including those of the shy
shareholders. Please send a note by mail or an e-mail to
[email protected] if you would like to toss a question into the mix.
WEB SITE ACCESS TO ACCOUNT INFORMATION Our web site's address is
www.weitzfunds.com, and it contains daily prices, performance information, and
virtually all of our printed material, including previous quarters' shareholder
letters and a transcript of a recent conference call that Rick and Wally held
with a group of investment advisors. Now, thanks to our webmaster Patty Weist's
hard work and help from our DST friends in Kansas City, shareholders can check
balances and transaction histories on our web site. The first time you do this,
you should (1) click on the "Account Access" button and follow instructions for
creating a personal identification number (PIN). (2) Read the legal disclaimer
and CHECK THE BOX at the bottom of the disclaimer. (3) Access your account(s).
AUTOMATED PHONE ACCOUNT ACCESS You may also check your account balances and
recent transactions by calling (800) 773-6472 and wending your way through the
(dreaded) phone tree. Instructions for using this line are shown on the back of
your account statements and on the web site.
CHANGE IN FISCAL YEAR We have changed Partners Value's fiscal year from a
December year end to a March year end. This will have no affect on investment
performance or tax consequences, but it will allow us to discontinue the
confusing practice of paying a dividend in January that is taxable in the
previous calendar year.
24
