General American Investors Company
Encyclopedia
The General American Investors Company, Inc. is a closed-end fund
that manages a global portfolio
of investments, consisting mainly of United States
securities
, and also some international and private securities.
was launched in 1927 under the sponsorship of Lazard Frères and Lehman Brothers
. In its first year of operation, it earned $1.1 million. In September 1928, Lazard Frères and Lehman Brothers launched a second fund, named the Second General American Investors Company. In August 1928, the two funds merged
, to form the current General American Investors Company, with Lazard Frères and Lehman Brothers underwriting the $40 million deal.
The early years of the Great Depression
were difficult for the fund, but the fund recovered as the 1930s progressed. The fund had assets valued at $15 million in 1932; at $23.1 million in 1933; and $30.1 million in 1935. Assets dropped to $24.7 million in 1937; $30 million in 1939; then dropped to $25.5 million in 1943; dropping slightly to $25.3 million in 1945.
Closed-end fund
A closed-end fund is a collective investment scheme with a limited number of shares. It is called a closed-end fund because new shares are rarely issued once the fund has launched, and because shares are not normally redeemable for cash or securities until the fund liquidates.Typically an...
that manages a global portfolio
Portfolio (finance)
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
of investments, consisting mainly of United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
, and also some international and private securities.
History
The General American Investors investment trustInvestment trust
An Investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies....
was launched in 1927 under the sponsorship of Lazard Frères and Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
. In its first year of operation, it earned $1.1 million. In September 1928, Lazard Frères and Lehman Brothers launched a second fund, named the Second General American Investors Company. In August 1928, the two funds merged
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
, to form the current General American Investors Company, with Lazard Frères and Lehman Brothers underwriting the $40 million deal.
The early years of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
were difficult for the fund, but the fund recovered as the 1930s progressed. The fund had assets valued at $15 million in 1932; at $23.1 million in 1933; and $30.1 million in 1935. Assets dropped to $24.7 million in 1937; $30 million in 1939; then dropped to $25.5 million in 1943; dropping slightly to $25.3 million in 1945.
Chairmen of the General American Investors Company
- Frank Altschul, 1948-1961
- Arthur G. Altschul, 1961-1965
- Lawrence B. Buttenwieser, 1995-2007
- Spencer Davidson, 2007-Present
Presidents / Portfolio Managers of the Fund
- Frank Altschul, 1927-1948
- Harold F. LinderHarold F. LinderHarold Francis Linder was president of the Export-Import Bank of the United States from 1961 to 1968 and United States Ambassador to Canada from 1968 to 1969.-Biography:...
, 1948-1955 - Harry G. Friedman, 1955-1961
- Malcolm B. Smith, 1961-1989
- William J. Gedale, 1989-1995
- Spencer Davidson, 1995-Present