WEITZ PARTNERS 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 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.
	11/01/2000

Partners Value Fund

SEMI-ANNUAL

One Pacific Place, Suite 600

402-391-1980

www.weitzfunds.com

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Historical Performance Information
Portfolio Manager’s Letter
Schedule of Investments in Securities
Financial Statements
Notes to Financial Statements

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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, 2000, calculated in accordance with SEC standardized formulas.

Period Ended				Partners II				S&P 500				Period Ended				Partners Value				S&P 500
	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				12/31/99				22.1				21.0
	12/31/89				20.3				31.6				09/30/00	††			10.2				-1.4
	12/31/90				-6.3				-3.1
	12/31/91				28.1				30.2				Cumulative				1,667.5				1,362.6
	12/31/92				15.1				7.6
	12/31/93				23.0				10.1				Average Annual				18.0				16.7
													Compound Growth     (Since inception     June 1, 1983)

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, 2000, was 16.8%, 24.7%, and 21.4%, 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 1/1/00 through 9/30/00

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October 12, 2000

Dear Fellow Shareholder:

        The 3^rd quarter of 2000 was a good one for the Partners Value Fund in both relative and absolute terms. Our total return (income plus appreciation, after deducting expenses) was a gain of +10.2%. This compares to losses of - 1.0% for the S&P 500 Index of large company stocks and +1.1% for the Russell 2000 Index of smaller company stocks. This brings our gain for the first 9 months of 2000 to +10.2% vs. -1.4% for the S&P and +4.2% for the Russell 2000. The table below shows the performance of the fund, the S&P 500, the Russell 2000, and our peer group of funds (according to Lipper Analytical Services) for various intervals over the past 10 years. (Performance numbers are after deducting fees and expenses from the fund and assume reinvestment of dividends.)

		1 Year				3 Years				5 Years				10 Years
Partners Value Fund			16.8	%			23.4	%			24.7	%			21.4	%
S&P 500 Index			13.3				16.4				21.7				19.4
Russell 2000 Index			23.4				6.0				12.4				16.9
Average Growth and Income Fund			13.9				10.8				16.9				16.5

Market Commentary and Portfolio Review

        In many ways the 3^rd quarter of 2000 was a continuation of the 2^nd quarter: declines in cable and telecom, severe punishment for companies whose short-term earnings did not live up to Wall Street’s expectations, and a rebound in financial services and real estate.

        Technology and telecommunications stocks had something of an “emperor’s new clothes” moment in mid-March. This was almost literally true for some of the new “dot-com” companies that had no clear path to profitability but a high “burn rate” of their initial capital. Venture capitalists withdrew promises of additional funding and Wall Street’s Initial Public Offering (IPO) window slammed shut. Some of these companies have already failed, and many others have seen the prices of their stocks fall by 50–95%.

        Funding for telecommunications “infrastructure” plays and new competitive telecom services providers has also become scarcer. Equity and “high yield” (junk) bond financing has been unavailable to most issuers, and capital spending plans are being reassessed. This is potentially devastating for ambitious startups that need billions of dollars to complete their “build it and they will come” projects.

        Then there are some terrific companies, such as Cisco, that are doing very well, but whose stock prices were pushed up to such heights that some correction was inevitable. These stocks are widely held by mutual funds and other institutional investors, and their softness has shaken the confidence of many investors.

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        We had no trouble avoiding the dot-coms, and could not make ourselves pay the asking prices of the Cisco’s. However, our performance has been hurt by the generalized weakness in established telecom stocks (e.g. Telephone and Data Systems and Citizens Communications) and sponsors of ambitious startups (e.g. Adelphia Cable is the parent of Adelphia Business Solutions, a new competitive local exchange carrier, or CLEC). We believe that these companies are sound and that their investments in new ventures do not threaten the well-being of the parents, but the stocks are depressed and may stay that way until the telecom glass is (at least) half full again.

        The second factor affecting 3^rd quarter results is the impact of “momentum investors” (an oxymoron, in my opinion) on several of our stocks. At least twenty years ago, certain growth stock investors began to study changes in the rate of change of companies’ revenues and profits. The idea was that if the growth rate was accelerating (or decelerating), the investor could get an early warning of a new growth spurt (or trouble ahead). This was a sensible idea for identifying stocks for further study, but in typical Wall St. fashion, it has been carried to an extreme. Today, a whole branch of the investment world buys and sells stocks on the basis of changes in earnings estimates by Wall St. analysts—not whether the stock is expensive or cheap based on its earnings or any other criteria.

        We own several companies in stable, growing industries, that have suffered some very mild, temporary earnings disappointments, but whose stocks have been trashed as if they were failed technology companies. Valassis Communications (VCI) sells coupon advertising in local newspapers. It enjoys a cozy duopoly with News Corp., earns very high returns on invested capital, and has grown for years at 12–15% per year. Last year its growth rate jumped (temporarily) to about 20%, and when the company warned that the growth rate would fall back to only 12–15%, investors panicked. The shares, which had sold at $45 a year ago, fell to under $21 and finished the quarter at $22. With earnings per share estimated at $2.25 for this year and $2.50 next, and recognizing that almost all of reported earnings represent free cash flow, we believe the stock is significantly undervalued.

        Similarly, Six Flags (cold, wet summer), Mail-Well (soft product prices and interest costs), and Insurance Auto Auctions (startup costs and execution lapses) delivered slightly disappointing results and their stocks have fallen 50–70% from their highs. In each case, we think investors have over-reacted and that the stocks are selling at large discounts from their business values.

        Finally, in the good news column, “interest-sensitive” stocks, such as financial services and real estate, continued to rebound strongly from their March lows. The prices of many of these companies are up 50% and a few have risen 100% in the last 6–7 months. For the most part, we are dealing with slow-growth businesses in these sectors. Thrifts (savings and loan companies) suffer from several competitive disadvantages. Large mortgage companies (Countrywide, Wells Fargo) can originate and service loans more efficiently. Fannie Mae and Freddie Mac have lower cost of funds and can finance mortgages more cheaply. Finally, thrifts depend on continuing to gather low cost deposits from relatively unsophisticated investors, and the competition for these funds is fierce.

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However, when we were able to buy solid thrifts with very little credit risk at 5–8 times current earnings per share, we thought the risk/reward ratio was very good.

        Similarly, since real estate investment trusts like Host Marriott pay out most of their earnings in dividends, they have little to reinvest to grow their property portfolios. Thus, most of their growth comes from gradual price increases and improvements in occupancy, and it is difficult to expect more than about 5% per year growth in earnings and dividends. However, 5% growth with an 8–10% cash dividend yield suggests 13–15% average annual total returns. If we can buy the stocks at depressed prices and hold them until they return to “normal” valuation levels, we can enjoy additional appreciation.

        These “low expectation” stocks have returned to more normal levels over the past several months, so we would not expect further dramatic gains. However, all of them are growing modestly and most pay reasonable dividends, so we expect them to serve us well if the general market continues to punish “high expectation” stocks that disappoint.

Outlook

        Over the past several years, I have been complaining about a “two-tier” market in which a few popular growth stocks have attracted more than their share of investment capital, at the expense of the rest of the public companies. There are signs that the top tier is faltering, and that investors are looking to the second tier for bargains and places of refuge. This is positive for us.

        The correction that is underway could go on for several quarters (or years), and as unjust as it may seem, our cheap stocks may get cheaper—temporarily—in the process. However, I am optimistic about our portfolio, and I believe it will produce very reasonable returns for us over the years.

		Sincerely, Wallace R. Weitz Portfolio Manager

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Shares
or units						Cost				Value
				COMMON STOCKS — 80.0%
				Auto Services — 0.2%
	173,000			Insurance Auto Auctions, Inc.*		$	2,024,761			$	2,800,438
				Banking — 22.1%
	537,300			Astoria Financial Corp.			13,659,355				20,753,213
	822,000			Commercial Federal Corp.			16,709,761				15,720,750
	20,000			First Federal Bankshares, Inc.			200,000				173,750
	2,928,400			Golden State Bancorp, Inc.			51,904,438				69,183,450
	2,528,700			Greenpoint Financial Corp.			57,049,865				74,912,738
	200,000			Local Financial Corp.*			1,876,869				1,900,000
	2,929,000			North Fork Bancorporation, Inc.			50,424,842				63,339,625
	243,000			Port Financial Corp.*			2,676,575				4,313,250
	1,432,800			U.S. Bancorp			31,271,486				32,596,200
	1,741,580			Washington Mutual, Inc.			49,171,691				69,336,654
							274,944,882				352,229,630
				Cable Television — 5.0%
	2,342,595			Adelphia Communications Corp. CL A*			80,874,809				64,567,775
	954,600			Insight Communications Co.*			13,284,573				15,154,275
							94,159,382				79,722,050
				Consumer Products and Services — 2.4%
	435,000			American Classic Voyages Co.*			7,441,018				6,361,875
	6,650			Lady Baltimore Foods, Inc. CL A			212,725				320,031
	872,000			Protection One, Inc.*			4,389,808				1,199,000
	1,940,000			Six Flags, Inc.*			35,695,127				30,070,000
							47,738,678				37,950,906
				Federal Agencies — 1.9%
	622,300			USA Education, Inc.			22,397,127				29,987,081

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Shares
or units						Cost				Value
				Financial Services — 7.0%
	556,500			Allied Capital Corp.		$	9,884,166			$	11,547,375
	108,500			American Capital Strategies, Ltd.			1,844,500				2,570,094
	292			Berkshire Hathaway, Inc. CL A*			11,043,944				18,804,800
	30,849			Berkshire Hathaway, Inc. CL B*			58,598,844				63,857,430
	751,000			Imperial Credit Industries, Inc.*			10,380,151				1,196,906
	187,200			The PMI Group, Inc.			5,321,896				12,682,800
	60,000			United Panam Financial Corp.*			607,346				73,125
							97,680,847				110,732,530
				Information and Data Processing — 0.0%
	175,000			Intelligent Systems Corp.			164,183				721,875
				Health Care — 0.2%
	167,200			LabOne, Inc.			2,627,501				1,567,500
	41,000			Lincare Holdings, Inc.*			1,014,735				1,176,187
							3,642,236				2,743,687
				Lodging and Gaming — 6.3%
	1,406,500			Extended Stay America, Inc.*			8,689,060				18,636,125
	145,000			Harrah’s Entertainment, Inc.*			2,120,444				3,987,500
	4,084,800			Hilton Hotels Corp.			36,946,743				47,230,500
	2,002,400			Park Place Entertainment Corp.*			16,467,700				30,286,300
							64,223,947				100,140,425
				Media and Entertainment — 4.5%
	2,449,200			AT&T Corp. — Liberty Media Group A*			28,763,541				44,085,600
	56,100			Daily Journal Corp.*			1,271,126				1,605,863
	1,187,100			Valassis Communications, Inc.*			27,496,162				26,412,975
							57,530,829				72,104,438

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Shares
or units						Cost				Value
				Mortgage Banking — 5.4%
	2,220,200			Countrywide Credit Industries, Inc.		$	68,441,206			$	83,812,550
	322,000			Resource Bancshares Mtg. Grp., Inc.			4,096,395				1,831,375
							72,537,601				85,643,925
				Printing Services — 0.6%
	2,046,100			Mail-Well, Inc.*			20,287,562				9,079,569
				Real Estate and Construction — 2.2%
	1,513,500			Catellus Development Corp.*			19,496,929				26,486,250
	246,200			Forest City Enterprises, Inc. CL A			5,137,132				8,863,200
							24,634,061				35,349,450
				Real Estate Investment Trusts — 6.3%
	400,000			Capital Automotive REIT			4,654,203				5,200,000
	100,000			Dynex Capital, Inc.*			1,803,500				131,250
	457,830			Fortress Investment Corp.			8,337,081				6,867,450
	215,500			Hanover Capital Mortgage Holdings, Inc.			3,192,299				1,077,500
	20,935			Healthcare Financial Partners Units**			2,088,266				1,777,381
	6,319,500			Host Marriott Corp.			56,988,534				71,094,375
	393,300			NovaStar Financial, Inc.*			6,103,300				1,524,037
	800,352			Redwood Trust, Inc.			14,816,234				12,205,368
							97,983,417				99,877,361
				Restaurants — 0.6%
	135,100			Applebee’s International, Inc.			3,087,479				3,107,300
	33,100			CBRL Group, Inc.			436,565				475,813
	226,800			Papa John’s International, Inc.*			5,079,600				5,684,175
							8,603,644				9,267,288
				Retail Discount — 1.4%
	1,688,200			Consolidated Stores Corp.*			23,615,725				22,790,700

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Shares
or units							Cost				Value
				Satellite Services — 0.3%
	556,200			Orbital Sciences Corp.*			$	7,575,833			$	4,658,175
				Telecommunications — 10.9%
	1,102,000			AT&T Corp.				34,887,683				32,371,250
	491,692			Centennial Communications Corp.*				4,559,316				10,817,224
	4,010,700			Citizens Communications Co.*				47,566,165				53,893,781
	220,775			Corecomm, Ltd.*				675,989				1,752,402
	630,700			Telephone and Data Systems, Inc.				40,027,815				69,818,490
	61,100			United States Cellular Corp.*				3,347,245				4,277,000
								131,064,213				172,930,147
				Utilities — 2.7%
	1,984,400			Western Resources, Inc.				41,447,147				42,912,650
					Total Common Stocks			1,092,256,075				1,271,642,325
				WARRANTS — 0.0%
	370,000			NovaStar Financial, Inc., Expiring 2/03/01*				185,000				370
				CONVERTIBLE PREFERRED STOCKS — 0.2%
	500,000			NovaStar Financial, Inc. 7% Pfd. Class B Cumulative				3,312,167				2,855,000

Face
amount
				U.S. GOVERNMENT AND AGENCY SECURITIES — 0.9%
$	10,000,000			Freddie Mac 5.0% 2/15/01				9,968,317				9,941,880
	2,500,000			Federal Home Loan Bank 6.44% 11/28/05				2,502,125				2,486,312
	3,000,000			Fannie Mae 6.56% 11/26/07				3,000,000				2,906,781
					Total U.S. Government and Agency Securities			15,470,442				15,334,973

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Face
amount							Cost				Value
				SHORT-TERM SECURITIES — 18.4%
$	65,438,495			Wells Fargo Government Money Market Fund			$	65,438,495			$	65,438,495
	23,000,000			U.S. Treasury Bill 10/12/00				22,958,044				22,963,453
	24,000,000			U.S. Treasury Bill 10/19/00				23,930,962				23,934,600
	15,000,000			Freddie Mac Discount Note 10/31/00				14,920,000				14,921,940
	30,000,000			Freddie Mac Discount Note 11/14/00				29,766,250				29,769,240
	47,000,000			U.S. Treasury Bill 11/24/00				46,573,762				46,586,212
	25,000,000			Fannie Mae Discount Note 11/30/00				24,733,750				24,736,150
	25,000,000			Federal Home Loan Bank Discount Note 12/08/00				24,699,667				24,701,300
	20,000,000			Fannie Mae Discount Note 1/10/01				19,642,011				19,643,880
	20,000,000			U.S. Treasury Bill 1/11/01				19,659,150				19,662,220
					Total Short-Term Securities			292,322,091				292,357,490
					Total Investments in Securities		$	1,403,545,775				1,582,190,158
				Other Assets Less Liabilities — 0.5%								7,906,924
					Total Net Assets — 100%						$	1,590,097,082
					Net Asset Value Per Share						$	20.24

**	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.

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Assets:
	Investment in securities at value (cost $1,403,545,775)			$	1,582,190,158
	Accrued interest and dividends receivable				3,266,147
	Receivable for securities sold				14,981,388
	Other				10,495
		Total assets			1,600,448,188
Liabilities:
	Due to adviser				1,384,598
	Payable for securities purchased				8,835,462
	Other expenses				131,046
		Total liabilities			10,351,106
Net assets applicable to outstanding capital stock				$	1,590,097,082
Net assets represented by:
	Paid-in capital (note 4)				1,362,914,643
	Accumulated undistributed net investment income				11,923,293
	Accumulated undistributed net realized gains				36,614,763
	Net unrealized appreciation of investments				178,644,383
		Total representing net assets applicable to shares outstanding		$	1,590,097,082
Net asset value per share of outstanding capital stock (78,581,199   shares outstanding)				$	20.24

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Investment income:
	Dividends					$	12,350,294
	Interest						7,526,505
		Total investment income					19,876,799
Expenses:
	Investment advisory fee						6,959,807
	Administrative fee						614,345
	Directors fees						13,768
	Other expenses						355,382
		Total expenses					7,943,302
		Net investment income					11,933,497
Realized and unrealized gain on investments:
	Net realized gain on securities						36,755,601
	Net unrealized appreciation of investments						112,860,788
		Net realized and unrealized gain on investments					149,616,389
		Net increase in net assets resulting from operations				$	161,549,886

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					Six months
					ended				Three months
					Sept. 30, 2000				ended				Year ended
					(Unaudited)				March 31, 2000				Dec. 31, 1999
Increase in net assets:
	From operations:
		Net investment income			$	11,933,497			$	5,100,226			$	11,552,611
		Net realized gain				36,755,601				25,920,563				61,757,740
		Net unrealized appreciation (depreciation)				112,860,788				(50,042,071	)			45,164,375
			Net increase (decrease) in net assets resulting from operations			161,549,886				(19,021,282	)			118,474,726
	Distributions to shareholders from:
		Net investment income				(5,107,031	)			(11,435,772	)			(815,990	)
		Net realized gains				(46,386,518	)			(41,294,888	)			(22,157,574	)
			Total distributions			(51,493,549	)			(52,730,660	)			(22,973,564	)
	Capital share transactions:
		Proceeds from sales				332,340,764				301,732,773				959,615,383
		Payments for redemptions				(141,274,101	)			(179,222,698	)			(222,923,670	)
		Reinvestment of distributions				47,345,599				47,496,370				18,849,624
			Total increase from capital share transactions			238,412,262				170,006,445				755,541,337
			Total increase in net assets			348,468,599				98,254,503				851,042,499
Net assets:
	Beginning of period					1,241,628,483				1,143,373,980				292,331,481
	End of period (including undistributed income of $11,923,293 and $5,096,828, respectively)				$	1,590,097,082			$	1,241,628,483			$	1,143,373,980

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

			Six months				Three months
			ended				ended				Year ended December 31,
			Sept. 30, 2000				March 31,
			(Unaudited)				2000**				1999				1998				1997				1996				1995
Net asset value, beginning of period			$	18.75			$	20.02			$	17.68			$	15.45			$	11.52			$	10.38			$	8.28
Income (loss) from investment operations:
	Net investment income			0.35				0.08				0.21				0.06				0.13				0.06				0.08
	Net gains or losses on securities (realized and unrealized)			2.79				(0.43	)			3.42				4.00				4.33				1.93				3.11
	Total from investment operations			3.14				(0.35	)			3.63				4.06				4.46				1.99				3.19
Less distributions:
	Dividends from net investment income			(0.27	)			(0.20	)			(0.05	)			(0.16	)			—				(0.06	)			(0.24	)
	Distributions from realized gains			(1.38	)			(0.72	)			(1.24	)			(1.67	)			(0.53	)			(0.79	)			(0.85	)
	Total distributions			(1.65	)			(0.92	)			(1.29	)			(1.83	)			(0.53	)			(0.85	)			(1.09	)
Net asset value, end of  period			$	20.24			$	18.75			$	20.02			$	17.68			$	15.45			$	11.52			$	10.38
Total return				12.1%	†			(1.8%	)†			22.1%				29.1%				40.6%				19.2%				38.7%
Ratios/ supplemental data:
	Net assets, end of period ($000)		$	1,590,097			$	1,241,628			$	1,143,374			$	292,331			$	133,737			$	94,846			$	73,781
	Ratio of expenses to average net assets			1.14%	*			1.19%	*			1.24%				1.25%				1.24%				1.23%				1.27%
	Ratio of net investment income to average net assets			1.71%	*			1.77%	*			1.57%				0.34%				1.11%				0.51%				0.82%
	Portfolio turnover rate			13%	†			5%	†			29%				36%				30%				37%				51%

*	Annualized

†	Not Annualized

**	The Fund changed its fiscal year end from December 31 to March 31, in this period

The accompanying notes form an integral part of these financial statements.

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(1) Organization

	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.
	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 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

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	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. Although no call options were written in the six month period ended September 30, 2000, such options are authorized.
	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.

	(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

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	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 six months ended September 30, 2000.
	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 six months ended September 30, 2000, the fee was calculated at an average annual rate of .09%, 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.
	Transactions in the capital stock of the Fund are summarized as follows:

			Six months ended				Three months
			Sept. 30, 2000				ended				Year ended
			(Unaudited)				March 31, 2000				Dec. 31, 1999
Transactions in shares:
	Shares issued			17,246,482				16,612,167				51,129,522
	Shares redeemed			(7,394,253	)			(10,024,543	)			(11,692,545	)
	Reinvested dividends			2,517,044				2,526,403				1,122,147
				12,369,273				9,114,027				40,559,124

(5) Securities Transactions

	Purchases and proceeds from maturities or sales of investment securities of the Fund, other than short-term securities, aggregated $225,390,882 and $151,092,623, respectively. The cost of

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	investments for Federal income tax purposes is $1,403,601,945. At September 30, 2000, the aggregate gross unrealized appreciation and depreciation, based on cost for Federal income tax purposes, were $250,965,411 and $72,377,198 respectively.

(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:

		Number of
		Shares or
		Units Held				Value
		Sept. 30, 2000				Sept. 30, 2000				Dividend				Realized
Name of Issuer		(Unaudited)				(Unaudited)				Income				Gains/(Losses)
NovaStar Financial, Inc.			393,300			$	1,524,037			$	—			$	—
NovaStar Financial, Inc., Warrants Expiring 2/03/01			370,000				370				—				—
NovaStar Financial, Inc., 7% Pfd.    Class B Cumulative			500,000				2,855,000				122,500				—
Redwood Trust, Inc.			800,352				12,205,368				656,289				—
						$	16,584,775			$	778,789			$	—

(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.

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