TGS Management

TGS Management (TGS) is an American quantitative investment management firm founded in 1989 that has offices in Princeton, New Jersey and Irvine, California. It is known to maintain a very low profile.

TGS Management Company, LLC
TypePrivate
IndustryInvestment management
Founded1989 (1989)
Founders
HeadquartersPrinceton, New Jersey, U.S.
ProductsHedge funds
Quantitative finance
Websitewww.tgsmc.com

Background

In 1989, TGS was founded by Frederick Taylor, David Gelbaum and Andrew Shechtel.[1][2][3] The name of the firm comes from the starting letters of its three founders' surnames.[3] 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.[1][3][4] In December 1988, PNP closed due to financial burdens imposed by a Racketeer Influenced and Corrupt Organizations Act investigation.[1][3][4] The three founders of TGS were not accused of any wrongdoing and after they started TGS, they kept many former PNP employees and investors.[1]

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.[1][2] 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.[1][2] 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.[1][5] At least one fund was forced to dissolve leading to the British media dubbing the firm a “secretive U.S. vulture fund”.[1][5] At the time TGS was operating under the name Sierra Trading.[5][6]

The Real Deal reported that TGS has been acquiring land and office space in Irvine.[7] As of February 2023, TGS owns more than 60 acres in Irvine.[7]

TGS is known to be highly selective and hires individuals from quantitative backgrounds which include software engineers and PhDs.[1][2] 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.[8]

Charity

Bloomberg News reported that the founders of TGS have been donating large sums of money away to charity anonymously.[1][3] This was done by making use of many different subsidiaries under TGS to hide the source of funds.[1] Donations include finding a cure for Huntington's disease.[1][3]

Political activities

In the early 2000s, TGS lobbied Congress on tax policy for three consecutive years.[1] In 2001, it submitted a wish list of tax law changes to the United States House Committee on Ways and Means.[1] It also wanted more generous tax treatment for donors who target rare diseases or contribute securities such as bonds to a private foundation.[1]

References

  1. "The $13 Billion Mystery Angels". Bloomberg.com. 2014-05-14. Retrieved 2023-02-09.
  2. "The hedge fund job you didn't know you wanted that you probably can't get". eFinancialCareers. 2014-05-21. Retrieved 2023-02-09.
  3. Staff, U. S. 1. "Princeton Newport's Secretive Successor". Community News. Retrieved 2023-02-09.
  4. Paltrow, Scot J.; Schine, Eric (1988-12-09). "Princeton/Newport, Target of U.S. Probe Linked to Drexel, Will Close". Los Angeles Times. Retrieved 2023-02-09.
  5. "New raiders hit Auld Reekie". The Observer. 2001-02-18. ISSN 0029-7712. Retrieved 2023-02-09.
  6. "BrokerCheck - Find a broker, investment or financial advisor". brokercheck.finra.org. Retrieved 2023-02-09.
  7. Rebong, Kevin (2023-02-01). "TGS Management pays $240M to buy site for Irvine data hub". The Real Deal Los Angeles. Retrieved 2023-02-09.
  8. Hope, Gregory Zuckerman and Bradley (2017-05-21). "The Quants Run Wall Street Now". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-02-09.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.