General American Investors Company, Inc.
List of Deals
- 1929 recapitalization and merger with Second General American Investors Company, Inc.
- 1931 reduction of capital
- 1944 common stock
The General American Investors Company was an investment trust organized in 1927 under the sponsorship of Lazard Freres and Lehman Brothers. In the first year of operation, ending December 1927, General American Investors earned $1.1 million in income.
In October 1928 Lehman Brothers and Lazard Freres formed another investment trust, the Second General American Investors Company. The following year, in August 1929, the directors of both trusts agreed to merge, and the new company would continue with the name Great American Investors Company. Lazard Freres and Lehman Brothers once again underwrote the deal, valued at the time at $40 million.
The stock market of the late 1920s and early 1930s impacted Great American Investors significantly, but as the decade of the 1930s progressed the trust began to recover. At the end of 1932 the trust reported assets of $15 million. Yet one year later, assets were 45 percent higher at $23.1 million, and in 1935 they increased even more to $30.1 million. Through the remainder of the decade the assets of the trust fluctuated wildly from year to year. In 1937 assets dropped $12 million, to $24.7 million. By 1939 assets were once again up to $30 million, and the following year they were back down to $25.5 million. Assets were at $25.3 million by the end of 1943.