Breaking Vegas
- Thread starter SammyBoy
- Start date
zengrifter
Banned
Thorp's "Newport-Princeton Partners"...
...was/is very successful at implementing a hedge-fund strategy that was predicted in BTD second edition. He was also noted by the feds to be an "unindicted-coconspirator" of Milken and Boesky in the early 90s, resulting from their use of Newport-Princeton to "park" stocks. In an article about him in '99 Worth magazine estimated his wealth at over $400 million. zg
...was/is very successful at implementing a hedge-fund strategy that was predicted in BTD second edition. He was also noted by the feds to be an "unindicted-coconspirator" of Milken and Boesky in the early 90s, resulting from their use of Newport-Princeton to "park" stocks. In an article about him in '99 Worth magazine estimated his wealth at over $400 million. zg
Historical discrepency in Ed Thorp episode
In the show he teaches his investor to count with Hi-Lo but according to "Beat the Dealer" at the time he was working with his investor he was using 5s count, and "[Hi-Lo] was not presented in the first edition because the needed calulations had not been completed" p75 1966 edition. I guess the History Channel used Hi-Lo in the show because it is what he is best known for, or they didn't think there was any difference.
In the show he teaches his investor to count with Hi-Lo but according to "Beat the Dealer" at the time he was working with his investor he was using 5s count, and "[Hi-Lo] was not presented in the first edition because the needed calulations had not been completed" p75 1966 edition. I guess the History Channel used Hi-Lo in the show because it is what he is best known for, or they didn't think there was any difference.
zengrifter
Banned
The answer is quoted from...
... a review of Ben Mezrich's Bringing Down The House -
"For those with a taste for risk, there is no casino like the modern finanical markets where the opportunity for profit and loss is far greater than the gaming tables of Las Vegas. The rewards that are available at investment banks and hedge funds attract some of the smartest people in the world. This was eventually the path followed by Ed Thorp.
While a professor at U.C. Irvine Ed Thorp became interested in the stock market. In 1967 he published Beat the Market: A Scientific Stock Market System which describes stratagies for trading stock warrants. Warrants act like stock options, but with a longer term. Thorp developed an early version of what has become known as the Black-Scholes option pricing formula. In 1969 Thorp left academia, never to return. He founded an investment fund, based in Long Beach, California, initially called Convertible Hedge Associates, and later renamed Princeton Newport Partners. Princeton Newport Partners was one of the most consistently successful hedge funds in history, making Thorp a very wealthy man."
Full review here - http://www.bearcave.com/bookrev/bringing_down_the_house.html
... a review of Ben Mezrich's Bringing Down The House -
"For those with a taste for risk, there is no casino like the modern finanical markets where the opportunity for profit and loss is far greater than the gaming tables of Las Vegas. The rewards that are available at investment banks and hedge funds attract some of the smartest people in the world. This was eventually the path followed by Ed Thorp.
While a professor at U.C. Irvine Ed Thorp became interested in the stock market. In 1967 he published Beat the Market: A Scientific Stock Market System which describes stratagies for trading stock warrants. Warrants act like stock options, but with a longer term. Thorp developed an early version of what has become known as the Black-Scholes option pricing formula. In 1969 Thorp left academia, never to return. He founded an investment fund, based in Long Beach, California, initially called Convertible Hedge Associates, and later renamed Princeton Newport Partners. Princeton Newport Partners was one of the most consistently successful hedge funds in history, making Thorp a very wealthy man."
Full review here - http://www.bearcave.com/bookrev/bringing_down_the_house.html