# Twin Tree Management

Twin Tree Management is an Asset Manager based in Dallas, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Dallas, United States
- **Region:** North America
- **Address:** Dallas, TX, United States
- **Founded:** 2002
- **Assets under management:** Undisclosed
- **Website:** twintreemanagement.com

## Regulatory record

- **CRD number:** 149548
- **SEC file number:** 801-73138
- **Registration status:** Registered
- **Reports private funds:** Yes
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/149548

## About

TWIN TREE MANAGEMENT, LP is an SEC-registered investment adviser in DALLAS, TX, registered since 2012. The firm manages approximately $1.5 billion in regulatory assets. It has 8 employees and 5 investment advisers.

## Sectors

- Equity Derivatives
- Options
- ETF

## Offices

- New York, NY

## People

- Dave Simon — Chief Investment Officer
- Darren T. Baccus — Chief Executive Officer

## Questions

### Who runs investment decisions at Twin Tree Management?

Dave Simon serves as Chief Investment Officer, a role he was formally elevated to in September 2023 according to the firm's official communications. Simon is a co-founder of the firm and has led trading strategy and risk management since its inception in 2002. He works alongside CEO Darren T. Baccus.

### How does Twin Tree source its opportunities?

Twin Tree sources the vast majority of its flow as a direct counterparty to major investment bank derivatives desks. The firm prices and hedges structured product and ETF-linked options flow, rather than competing for trades in the open market. This bank-intermediated model gives it access to an enormous, recurring notional volume of customer-driven order flow.

### Is Twin Tree a market maker or a proprietary trading firm?

Twin Tree operates as a proprietary trading firm with a market-making function. It deploys its own capital to warehouse and hedge substantial options risk that banks offload, blurring the line between a traditional liquidity provider and a principal risk-taker. The firm does not serve external retail or institutional customers directly.

### What instruments and asset classes does Twin Tree focus on?

The firm's book is concentrated in listed equity options, ETF options, variance swaps, and customized OTC equity derivatives. Core activity centers on US equities and indices, though positioning extends into European and Asian markets through index rebalancing trades and corporate event hedging. The firm is not known to participate in fixed income, credit, or commodity derivatives in a material way.

### Does Twin Tree manage outside capital?

No. Twin Tree does not manage external investor capital. The firm has never registered as an investment adviser or operated a fund for outside limited partners. All capital deployed is partner and firm equity, which structurally separates it from the redemption and liquidity pressures of a traditional hedge fund.

### How is Twin Tree different from a multi-strategy hedge fund?

Twin Tree does not run external capital, has no investor relations function, and operates a single, deeply integrated derivatives book rather than competing pod-based strategies. Its P&L is driven by the spread captured on massive, recurring options flow rather than by discretionary single-stock calls or asset-class rotation. The firm's economics are more akin to an exchange-designated market maker than a traditional hedge fund.

### What is Twin Tree's relationship with the structured product and ETF industry?

Twin Tree acts as a critical hedging counterparty for the bank desks that manufacture structured notes, variable annuities, and ETF-linked products. When banks package customer-facing derivatives, they offload the resulting options risk — often to firms like Twin Tree. This makes the firm an essential piece of the supply chain that delivers options-linked retail and institutional products.

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- [Two Prime](https://altss.com/profile/two-prime-inc)

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Last updated: 2026-06-03T20:00:00.000Z

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