Gerald Tsai Jr., a pioneer in the creation of performance funds, who owned a home in Palm Beach, died Wednesday, July 9, 2008, in Manhattan. His son, Christopher, told The New York Times that the cause of death was multiple organ failure. He was 79.

Mr. Tsai was born on March 10, 1929, in Shanghai, China, to Ruth and Gerald Tsai Sr. He moved to the United States in 1947 and eventually earned bachelor's and master's degrees in economics at Boston University.

In 1951, he became a securities analyst at Bache & Co. The next year, he joined Fidelity Management and Research Co. where he started its first aggressive growth fund in 1958. He became the company's executive vice president in 1963.

Mr. Tsai was known for his skills as manager of performance-oriented mutual funds. In 1965, with his mother's encouragement, he established the Manhattan Fund, which started at an offering of 2.5 million shares. The fund quickly ballooned to 27 million shares, bringing in $247 million in capital and representing what, at the time, was the biggest offering in investment company history. Mr. Tsai sold the fund to CNA Financial Corp. in 1968 for a personal gain of $30 million.

Mr. Tsai was chairman of the Associated Madison Cos. when it was bought in 1982 by American Can Co. Mr. Tsai was named executive vice president of financial services for American Can. In 1987, when the business changed its name to Primerica, Mr. Tsai was chief executive officer, making him the first Chinese-American person to lead a Dow Jones industrials company.

In 1988, Primerica and Commercial Credit Group, which included the firm that later became Citi Smith Barney, were combined in a $1.65 billion deal, a merger that helped lay the foundation for Citigroup. Mr. Tsai remained the company's largest shareholder.

From 1993-97, he was chief executive officer of Delta Life Corp. He later served as a director of Apollo Investment Corp., Saks Inc., Sequa Corp., Triarc Cos. Inc., United Rentals Inc. and Zenith National Insurance Corp.

Mr. Tsai's marriages to Loretta Young, Marlyn Chase, Cynthia Ann Ekberg and Nancy Raeburn (now Nancy Paul of Palm Beach) ended in divorce. In 2006, he was engaged to Sharon Bush, the former wife of President George W. Bush's brother Neil, but the union was called off.

Mr. Tsai is survived by two sons, Christopher and Gerald; a daughter, Veronica; and five grandchildren.