This is all pretty exciting. My goal in purchasing Tri-Continental was to take advantage of its large discount to net asset value (NAV). That gap is slowly starting to close. As I wrote last month, Western Investment LLC is trying to exert pressure on Tri-Continental to remedy the discount to NAV. I was really hoping that an activist shareholder would step in and address the discount problem. It looks like Western Investment is really stepping up to this task by getting a list of shareholders and mailing out a competing proxy.
I’m a bit disappointed that Tri-Continental is putting up a fight on this issue. However, I believe that Western Investment’s actions will force Tri-Continental to make changes even if Tri-Continental wins the vote. All this activity is likely creating a catalyst that could unlocking the value of Tri-Continental shares.