DECEMBER 31, 2009

Portfolio Manager:  Thomas D. Carney

The Government Money Market Fund closed the fourth calendar quarter with a 7-day effective yield of 0.06%. (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.)

Our Fund’s yield, and hence return, continues to be stuck in a near-zero range. This is a result of the continued intention of the Federal Open Market Committee (FOMC) of the Federal Reserve to keep the Fed Funds rate (the overnight lending rate between banks, which is controlled by the Federal Reserve) at "exceptionally low levels for an extended period" as a means to promote economic recovery. The Fed has maintained this highly unusual target range for the Fed Funds rate at zero to 0.25% since December 2008.

As we have mentioned in previous letters, the Fed Funds rate affects all investments within the purview of our Fund. 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. As of December 31, 60% of our portfolio was invested in U.S. Treasury bills with the balance (40%) in high quality Wells Fargo money market funds. The average life of our portfolio at December 31 was approximately 76 days.

While there continue to be signs of economic stabilization (e.g. the pace of job losses appears to have slowed), it remains likely that the Fed will keep short-term interest rates at near-zero for much of 2010 as the Fed awaits more definitive evidence of an economic recovery. When the Fed changes from its current course and begins to raise short-term rates is anyone’s guess, but our Fund will quickly benefit as we frequently reinvest maturing securities. In the meantime, 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.