1920s / 1930s / 1940s / 1950s / 1960s / 1970s / 1980s / 1990s / 2000s

As early as 1925, a junior employee at J. & W. Seligman & Co. proposed to the Partners that the firm sponsor an investment company — a company in which investors pool their assets for professional management.
 
The Partners were used to taking risks on their own account, but taking risks for thousands of Stockholders was something entirely different. However, by 1929, there were hundreds of investment companies, and the investing public couldn't seem to get enough of them. Ultimately, the decision was made and Tri-Continental Corporation was formed.
 
It was envisioned that the Corporation would invest its assets in the securities of companies on three continents — North and South America and Europe. The plan prompted the name Tri-Continental. The new corporation was to be a closed-end investment company with a diversified portfolio selected to attain a conservative objective — long-term growth of capital and income and reasonable current income. As a closed-end fund, Tri-Continental would issue a fixed number of shares that could be bought and sold primarily on the New York Stock Exchange.
 
Tri-Continental was to be significantly different from other closed-end funds formed in the United States at the time. Generally, these other funds were sponsored by investment banking firms to earn underwriting fees and sales commissions, and the investment management was left to one or two staff members who handled the job along with other duties. Not so at Tri-Continental.
 
The Corporation would have its own staff of university-trained economists and investment analysts whose sole responsibility was to study business conditions and find sound investments for the Corporation's investment portfolio. This was an unprecedented approach to investment management. However, Tri-Continental stood firmly behind this strategy, carefully selecting investments on the basis of thorough research and first-hand information. Investment risk was diversified widely by owning many different securities representing many different industries and companies. Management's goal was to have consistency of approach, with flexibility to change with the times.
 
On January 12, 1929, Tri-Continental opened for business with a capitalization of $52 million, consisting of $25 million of Preferred Stock with warrants attached, and 1 million shares of Common Stock with an initial net asset value of $27 per share. The securities sold quickly. With heavy demand for investment company shares and Tri-Continental's success, a second $50 million investment company, Tri-Continental Allied Corporation, was brought to market just eight months later on August 15, 1929.
 
Less than three months later, the great bull market of the 1920s came to an abrupt halt. What had seemed to be a world of insatiable demand for common stocks quickly turned to one of almost unlimited supply. However, Tri-Continental's faith in the investment business never faltered. Despite the nationwide financial crisis that was only just beginning, morale was diligently maintained, and the research team focused on the task at hand.