 | |
| Company type | Private company |
|---|---|
| Industry | Investment management |
| Founded | 1989 |
| Founders |
|
| Headquarters | Irvine, California, U.S. [1] |
| Products | Hedge funds Quantitative finance |
| Website | www |
TGS Management (TGS) is an American quantitative investment management firm founded in 1989 that has offices in Irvine, California and Princeton, New Jersey. [2] It is known to maintain a very low profile.
In 1989, TGS was founded by Frederick Taylor, David Gelbaum and Andrew Shechtel. [3] [4] [5] The name of the firm comes from the starting letters of its three founders' surnames. [5] The three of them previously worked at Princeton-Newport Partners (PNP), the world's first quantitative hedge fund that was founded in 1969 by Edward O. Thorp. [3] [5] [6] In December 1988, PNP closed due to financial burdens imposed by a Racketeer Influenced and Corrupt Organizations Act investigation. [3] [5] [6] The three founders of TGS were not accused of any wrongdoing and after they started TGS, they kept many former PNP employees and investors. [3]
When TGS started trading, it pursued a form of statistical arbitrage and within a few years, it had made enough to return money to most of its outside investors. [3] [4] As it no longer needed to solicit outsiders for capital, the firm had more flexibility on pursuing its own investment strategies without needing to disclose them. [3] [4] In late 1990s, TGS briefly appeared in the news where it mounted an arbitrage campaign against several closed-end funds under the Scottish Investment Trust. [3] [7] At least one fund was forced to dissolve leading to the British media dubbing the firm a "secretive U.S. vulture fund". [3] [7] At the time TGS was operating under the name Sierra Trading. [7] [8]
The Real Deal reported that TGS has been acquiring land and office space in Irvine. [9] As of February 2023, TGS owns more than 60 acres in Irvine. [9]
TGS is known to be highly selective and hires individuals from quantitative backgrounds which include software engineers and PhDs. [3] [4] The Wall Street Journal reported that TGS outbid Renaissance Technologies and Citadel LLC to hire a International Mathematical Olympiad gold medalist for $700,000 a year. [10]
Bloomberg News reported that the founders of TGS have been donating large sums of money away to charity anonymously. [3] [5] This was done by making use of many different subsidiaries under TGS to hide the source of funds. [3] Donations include finding a cure for Huntington's disease. [3] [5]
In the early 2000s, TGS lobbied Congress on tax policy for three consecutive years. [3] In 2001, it submitted a wish list of tax law changes to the United States House Committee on Ways and Means. [3] It also wanted more generous tax treatment for donors who target rare diseases or contribute securities such as bonds to a private foundation. [3]
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