TGS Management

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TGS Management Company, LLC
Company type Private company
Industry Investment management
Founded1989;36 years ago (1989)
Founders
Headquarters
Irvine, California
,
United States [1]
Products Hedge funds
Quantitative finance
Website www.tgsmc.com

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.

Contents

History

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 Group, L.P. [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] In 2023, The Wall Street Journal reported that TGS outbid Renaissance Technologies and Citadel LLC to hire an International Mathematical Olympiad gold medalist for $700,000 a year. [10] In 2024, the tech compensation platform Levels reported that TGS Management was one of the top ranked employers for software engineer salaries, paying new graduates around $500,000 per year. [11]

Charity

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]

Political activities

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]

References

  1. ↑ "TGS MANAGEMENT CORP". Dun & Bradstreet.
  2. ↑ "Who we are". TGS Management: Who We Are. TGS Management.
  3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 "The $13 Billion Mystery Angels". Bloomberg.com. May 14, 2014. Retrieved February 9, 2023.
  4. 1 2 3 4 "The hedge fund job you didn't know you wanted that you probably can't get". eFinancialCareers. May 21, 2014. Retrieved February 9, 2023.
  5. 1 2 3 4 5 6 "Princeton Newport's Secretive Successor". Community News. June 13, 2017. Retrieved February 9, 2023.
  6. 1 2 Paltrow, Scot J.; Schine, Eric (December 9, 1988). "Princeton/Newport, Target of U.S. Probe Linked to Drexel, Will Close". Los Angeles Times. Retrieved February 9, 2023.
  7. 1 2 3 "New raiders hit Auld Reekie". The Observer. February 18, 2001. ISSN   0029-7712 . Retrieved February 9, 2023.
  8. ↑ "BrokerCheck - Find a broker, investment or financial advisor". brokercheck.finra.org. Retrieved February 9, 2023.
  9. 1 2 Rebong, Kevin (February 1, 2023). "TGS Management pays $240M to buy site for Irvine data hub". The Real Deal Los Angeles. Retrieved February 9, 2023.
  10. ↑ Hope, Gregory Zuckerman and Bradley (May 21, 2017). "The Quants Run Wall Street Now". Wall Street Journal. ISSN   0099-9660 . Retrieved February 9, 2023.
  11. ↑ Kolakowski, Nick (October 18, 2024). "Are AI Companies Still Paying Software Engineers the Most?". Dice. Retrieved October 8, 2025.
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