{{Short description|American quantitative hedge fund}} {{Use mdy dates|date=December 2023}} {{Infobox company | name = TGS Management Company, LLC | logo = TGS_Management_Logo.svg | type = Private company | industry = Investment management | foundation = {{Start date and age|1989|}} | founders = {{ubl |Frederick Taylor |David Gelbaum |Andrew Shechtel }} | location_city = Irvine, California | location_country = United States<ref name="DNB">{{cite web |title=TGS MANAGEMENT CORP |url=https://www.dnb.com/business-directory/company-profiles.tgs_management_corp.81f4a178848e754c4a044ccb0f882d17.html |website=Dun & Bradstreet}}</ref> | products = Hedge funds<br>Quantitative finance | aum = | num_employees = | num_employees_year =
| homepage = {{URL|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.<ref>{{cite web |url=https://www.tgsmc.com/who-we-are/ |website=TGS Management: Who We Are |publisher=TGS Management |title=Who we are }}</ref> It is known to maintain a very low profile.
== History == In 1989, TGS was founded by Frederick Taylor, David Gelbaum and Andrew Shechtel.<ref name="Bloomberg.com-2014">{{Cite news |date=May 14, 2014 |title=The $13 Billion Mystery Angels |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2014-05-08/three-mysterious-philanthropists-fund-fourth-largest-u-dot-s-dot-charity |access-date=February 9, 2023}}</ref><ref name="eFinancialCareers-2014">{{Cite web |date=May 21, 2014 |title=The hedge fund job you didn't know you wanted that you probably can't get |url=https://www.efinancialcareers.com/news/2014/05/hedge-fund-job-didnt-know-wanted-probably-cant-get |access-date=February 9, 2023 |website=eFinancialCareers |language=en-US}}</ref><ref name="Community News-2017">{{Cite web |title=Princeton Newport's Secretive Successor |url=https://www.communitynews.org/princetoninfo/coverstories/princeton-newport-s-secretive-successor/article_72bec8d1-4e47-5c2e-ae0d-55c678167c9f.html |access-date=February 9, 2023 |website=Community News |date=June 13, 2017 |language=en}}</ref> The name of the firm comes from the starting letters of its three founders' surnames.<ref name="Community News-2017" /> 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.<ref name="Bloomberg.com-2014" /><ref name="Community News-2017" /><ref name="Paltrow-1988">{{Cite web |last1=Paltrow |first1=Scot J. |last2=Schine |first2=Eric |date=December 9, 1988 |title=Princeton/Newport, Target of U.S. Probe Linked to Drexel, Will Close |url=https://www.latimes.com/archives/la-xpm-1988-12-09-fi-1503-story.html |access-date=February 9, 2023 |website=Los Angeles Times |language=en-US}}</ref> In December 1988, PNP closed due to financial burdens imposed by a Racketeer Influenced and Corrupt Organizations Act investigation.<ref name="Bloomberg.com-2014" /><ref name="Community News-2017" /><ref name="Paltrow-1988" /> The three founders of TGS were not accused of any wrongdoing and after they started TGS, they kept many former PNP employees and investors.<ref name="Bloomberg.com-2014" />
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.<ref name="Bloomberg.com-2014" /><ref name="eFinancialCareers-2014" /> 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.<ref name="Bloomberg.com-2014" /><ref name="eFinancialCareers-2014" /> 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.<ref name="Bloomberg.com-2014" /><ref name="The Observer-2001">{{Cite news |date=February 18, 2001 |title=New raiders hit Auld Reekie |language=en-GB |work=The Observer |url=https://www.theguardian.com/business/2001/feb/18/theobserver.observerbusiness3 |access-date=February 9, 2023 |issn=0029-7712}}</ref> At least one fund was forced to dissolve leading to the British media dubbing the firm a "secretive U.S. vulture fund".<ref name="Bloomberg.com-2014" /><ref name="The Observer-2001" /> At the time TGS was operating under the name Sierra Trading Group, L.P.<ref name="The Observer-2001" /><ref>{{Cite web |title=BrokerCheck - Find a broker, investment or financial advisor |url=https://brokercheck.finra.org/firm/summary/24587 |access-date=February 9, 2023 |website=brokercheck.finra.org}}</ref>
''The Real Deal'' reported that TGS has been acquiring land and office space in Irvine.<ref name="Rebong-2023">{{Cite web |last=Rebong |first=Kevin |date=February 1, 2023 |title=TGS Management pays $240M to buy site for Irvine data hub |url=https://therealdeal.com/la/2023/02/01/tgs-management-pays-240m-to-buy-42-acres-for-irvine-data-hub/ |access-date=February 9, 2023 |website=The Real Deal Los Angeles |language=en-US}}</ref> As of February 2023, TGS owns more than 60 acres in Irvine.<ref name="Rebong-2023" />
TGS is known to be highly selective and hires individuals from quantitative backgrounds which include software engineers and PhDs.<ref name="Bloomberg.com-2014" /><ref name="eFinancialCareers-2014" /> 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.<ref>{{Cite news |last=Hope |first=Gregory Zuckerman and Bradley |date=May 21, 2017 |title=The Quants Run Wall Street Now |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/the-quants-run-wall-street-now-1495389108 |access-date=February 9, 2023 |issn=0099-9660}}</ref> 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.<ref name=levels>{{cite web|url=https://www.dice.com/career-advice/are-ai-companies-still-paying-software-engineers-the-most |title=Are AI Companies Still Paying Software Engineers the Most? | first=Nick|last=Kolakowski|work=Dice|date=October 18, 2024|access-date=October 8, 2025}}</ref>
== Charity == Bloomberg News reported that the founders of TGS have been donating large sums of money away to charity anonymously.<ref name="Bloomberg.com-2014" /><ref name="Community News-2017" /> This was done by making use of many different subsidiaries under TGS to hide the source of funds.<ref name="Bloomberg.com-2014" /> Donations include finding a cure for Huntington's disease.<ref name="Bloomberg.com-2014" /><ref name="Community News-2017" />
== Political activities == In the early 2000s, TGS lobbied Congress on tax policy for three consecutive years.<ref name="Bloomberg.com-2014" /> In 2001, it submitted a wish list of tax law changes to the United States House Committee on Ways and Means.<ref name="Bloomberg.com-2014" /> It also wanted more generous tax treatment for donors who target rare diseases or contribute securities such as bonds to a private foundation.<ref name="Bloomberg.com-2014" />
==References== {{Reflist}}
==External links== * {{Official website|https://www.tgsmc.com}} {{hedge funds}} {{authority control}}
Category:1989 establishments in New Jersey Category:Financial services companies established in 1989 Category:Investment management companies of the United States Category:Privately held companies based in Irvine, California