6
Morningstar Analyst Rating
08-11-14
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
§
Positive
Positive
Positive
Positive
Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
34.01
32.47
24.81
21.04
20.59
16.15
12.31
19.90
24.43
22.77
23.90
21.48
Total Return %
5.26
30.87
17.92
2.19
27.49
31.30
-38.06
-8.54
22.53
-2.42
14.99
25.38
+/-S&P 500
-4.63
-1.52
1.92
0.08
12.43
4.84
-1.06
-14.03
6.74
-7.33
4.11
-3.30
+/-Russ 1000
-4.64
-2.24
1.50
0.69
11.39
2.87
-0.46
-14.31
7.07
-8.69
3.59
-4.51
Income Return %
0.00
0.00
0.00
0.00
0.00
0.09
0.11
0.40
0.62
0.63
0.39
0.11
Capital Return %
5.26
30.87
17.92
2.19
27.49
31.21
-38.17
-8.94
21.91
-3.05
14.60
25.27
Total Rtn % Rank Cat
93
63
13
16
1
14
64
96
5
97
74
87
Income $
0.00
0.00
0.00
0.00
0.00
0.01
0.02
0.09
0.14
0.15
0.08
0.02
Capital Gains $
0.17
0.00
0.00
0.00
0.00
0.00
0.00
2.50
3.19
0.40
0.70
0.00
Expense Ratio %
1.18
1.19
1.20
1.21
1.21
1.19
1.15
1.14
1.14
1.13
1.13
1.08
Income Ratio %
-0.46
-0.25
-0.32
-0.26
-0.52
0.05
0.29
0.39
0.49
0.61
0.16
0.76
Turnover Rate %
19
24
31
42
30
29
24
31
36
22
.
20
Net Assets $mil
804
1,039
735
642
702
560
467
1,540
2,035
2,074
2,893
2,871
Performance
08-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
12.94 -6.09
8.58 10.70 27.49
7.09 -0.05 -14.66 11.86
2.19
10.50 -1.38
5.19 2.86 17.92
11.85 3.78
4.62 7.77 30.87
2.25 2.01
. . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
1000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
2.00 -2.69
-2.78
94 10,200
2.73 -6.11
-5.65
98 10,273
15.78 -9.47
-9.58
97 11,578
19.10 -1.51
-1.70
55 16,894
17.10 0.22
-0.14
15 22,018
7.59 -0.79
-1.19
62 20,784
7.36 2.58
2.10
12 29,016
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
19.06
35
0.04
4
17.08
5
0.02
3
7.00
49
0.54
33
Potential Capital Gain Exposure: 41% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
15.78
3 Yr
19.10
Avg
Low
5 Yr
17.10
+Avg
-Avg
10 Yr
7.59
Avg
Avg
Incept
12.81
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Mid Cap TR
Alpha
1.9
4.0
Beta
0.83
0.69
R-Squared
90
92
Standard Deviation
10.16
Mean
19.10
Sharpe Ratio
1.78
Morningstar’s Take
by Kevin McDevitt, CFA 08-11-14
The price for Weitz Partners Value’s discipline is well
worth the cost.
Cash has hampered its returns over the past 12
months, but it isn’t the only culprit. Holding nearly 30%
in cash has certainly been a handicap with the Russell
3000 Index up 16.4% through July 2014. (The fund’s
11.7% gain also trails 91% of its large-blend peers.)
Managers Wally Weitz and Brad Hinton have been
taking profits as share prices have risen while holding
on to stocks selling at comfortable discounts to
estimated intrinsic values. But top-25 holdings such as
the Liberty trio (Global, Media, and Interactive),
Express Scripts ESRX, and Interval Leisure IILG have
struggled, too. Weitz and Hinton’s general avoidance of
commodified energy and utilities companies has
limited exposure to 2014’s best-performing sectors.
Perhaps owning companies with competitive
advantages is risk control enough, but the portfolio
isn’t as high-quality as it seems. True, all but 2.5% of
the equity portfolio is in companies with a Morningstar
Economic Moat Rating. But the portfolio’s average
return on assets (currently 4.6%) has consistently
been below that of the Russell 3000 average (currently
7.2%). Plus, the portfolio’s average debt/capital ratio
is usually greater than that of the index. While Weitz
and Hinton don’t like capital-intensive businesses,
they’re comfortable with companies such as Liberty
Global LBTYA and Valeant Pharmaceuticals VRA that
have issued debt to grow through acquisitions. The
portfolio’s 42.4% average debt/capital is the highest it
has been in about five years, well above the 36.5%
Russell 3000 average.
Despite such debt, the fund’s cash stake makes a
repeat of the fund’s weak showing during the 2007-09
credit crisis unlikely. Back then, cash was typically
less than 10% of assets. (Plus, the fund also held
some toxic financials positions.) Shareholders should
also take heart from Weitz and Hinton’s history of
putting cash to use when share prices fall. They picked
up several attractive bargains after the 2011
correction. Given their price discipline, the next
sell-off should create new opportunities.
Address:
1125 South 103 St
Omaha, NE 68124
800-304-9745
Web Address:
Inception:
05-31-83
Advisor:
Weitz Investment Management, Inc
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$2500
Add: $25 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load
Management Fee:
0.90% mx./0.70% mn., 0.25%A
Actual Fees:
Mgt:0.90% Dist:
.
Expense Projections:
3Yr:$383
5Yr:$666 10Yr:$1474
Income Distribution:
Semi-Annually
Data through August 31, 2014
Weitz Partners Value Investor
Ticker
Status Yield Total Assets
Mstar Category
WPVLX Open
0.0% $1,075 mil
Large Blend
89% 91% 92% 80% 78% 83% 75% 71% 72%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 08-14
Historical Profile
Return
Risk
Rating
Average
Below Avg
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.8
26.8
Portfolio Analysis
06-30-14
Share change since 03-14 Total Stocks:30 Sector
PE Tot Ret% % Assets
Liberty Media Corporatio
Cnsmr Cyc 8.4 -3.56 5.23
Liberty Global PLC Class
Comm Svs
.
-5.15 4.31
Valeant Pharmaceuticals
Hlth care
.
-0.01 4.13
Berkshire Hathaway Inc C
Finan Svs 15.2 5.79 4.09
Directv
Comm Svs 15.8 24.60 3.73
Express Scripts
Hlth care 32.7 -0.84 3.65
Iconix Brand Group Inc
Cnsmr Cyc 16.2 6.37 3.41
Liberty Interactive Corp
Technology 31.4
.
3.25
Texas Instruments Inc
Technology 22.9
.
3.09
Redwood Trust Inc
Real Est
23.2 0.88 3.05
Wells Fargo & Co
Finan Svs 12.7 13.55 3.01
Apache Corporation
Energy
24.3 20.27 2.79
Martin Marietta Material
Basic Mat 41.5 25.11 2.38
Interval Leisure Group I
Cnsmr Cyc 16.2
.
2.23
Aon PLC
Finan Svs 21.7 1.36 2.16
Oracle Corporation
Technology 17.4 6.51 2.15
Laboratory Corp of Ameri
Hlth care 17.8 13.48 2.13
Microsoft Corp
Technology 17.3 16.87 2.12
FLIR Systems Inc
Technology 32.5 11.23 1.92
Range Resources Corp
Energy
50.8 -10.25 1.40
Current Investment Style
Market Cap %
Giant
23.5
Large
31.2
Mid
31.4
Small
12.3
Micro
1.6
Avg $mil:
22,255
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
22.18
1.77
1.64
8.02
0.96
1.54
0.87
1.30
1.13
0.44
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.89
15.90
10.95
11.67
49.37
1.05
2.99
3.76
1.71
2.75
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
9.27
4.64
13.46
0.48
0.60
1.06
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 40.43 1.40
BasicMat 3.32 1.08 7 3
CnsmrCyc18.45 2.15 19 16
FinanSvs 14.40 0.92 16 13
Real Est 4.26 2.92 6 4
Sensitive 42.51 0.97
CommSrvs11.22 2.80 11 7
Energy 5.85 0.55 8 5
Industrl
3.20 0.28 7 2
Technlgy 22.24 1.27 26 16
Defensive17.07 0.62
CnsmrDef 1.68 0.14 7 2
Hlthcare 15.39 1.30 16 10
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 28.3
Stocks 71.7
Bonds 0.0
Other
0.0
Foreign 16.4
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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