MARCH 31, 2009

Portfolio Manager:  Thomas D. Carney

The Government Money Market Fund closed the first quarter with a 7-day effective yield of 0.22%. (An investment in the Fund is neither insured nor guaranteed by the U.S. Government.  There can be no assurance that the Fund will be able to maintain a stable net asset value.  Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.)

In the past year, our Fund’s 7-day effective yield has declined by approximately 2%, nearly coinciding with the year-over-year decline in the Fed Funds rate (the overnight lending rate between banks controlled by the Federal Reserve). Most of this decline occurred in December 2008, as the Fed moved short-term interest rates to an unprecedented range of zero to 0.25% and announced that short rates would remain "unusually low for some time." So far in 2009, the Fed has reaffirmed this near-zero target for the Fed Funds rate. The implication for our Fund, and all money market fund investors, has been a continued decline in investment yield as maturing securities are reinvested in a much lower return environment.

As we have mentioned in previous letters, the Fed Funds rate exerts an effect similar to a gravitational pull on the investment universe for our Fund. The past year has been no exception. Since we invest in ultra high-quality short-term investments (e.g. U.S. Treasury bills and government agency discount notes) that have a weighted average maturity of less than ninety days, our yield has invariably followed the path dictated by the Federal Reserve’s monetary policy as we frequently reinvest maturing bills and notes in these short-term instruments.

Absent a meaningful improvement in the economy, it seems likely that the Fed will keep short-term interest rates "unusually low" for the remainder of 2009 and possibly beyond. We will continue to seek opportunities to add incremental return to our Fund’s yield while maintaining our focus on high credit quality.

Despite today’s low yield environment, our Fund remains a sensible option for those investors whose primary objective is the maintenance of liquidity and the preservation of capital.

Investors should consider carefully the investment objectives, risks, and charges and expenses of the Fund before investing. The Fund’s Prospectus contains this and other information about the Fund and should be read carefully before investing. Portfolio composition is subject to change at any time and references to specific sectors referenced in this letter are not recommendations to purchase or sell any particular security. Current and future portfolio holdings are subject to risk. See the Schedule of Investments in Securities included in the Fund’s quarterly report for the percent of assets of the Fund invested in particular sectors.

Weitz Securities, Inc. is the distributor of The Weitz Funds.