Edward O. Thorp is an American mathematics professor, hedge fund manager, and blackjack player. To beat roulette, he and the father of information theory, Claude Shannon, invented the first wearable computer. Along with innovative applications of probability theory, Thorp is also the New York […]
Edward Oakley Thorp (born August 14, 1932) is an American mathematics professor, author, hedge fund manager, and blackjack researcher. He pioneered the modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain.
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A Man For All Markets. The incredible true story of the card-counting mathematics professor who taught the world how to beat the dealer and, as the first of the great quantitative investors, ushered in a revolution on Wall Street.
Edward Oakley “Ed” Thorp was born in Chicago, Illinois on August 14th, 1932. His father was a veteran of World War I, and the senior Thorp had met his future bride after returning home from combat.
Edward Thorp is one of the exclusive members of the Blackjack Hall of Fame. Perhaps nobody is more deserving of this honor than Thorp given that he invented modern counting. But the former mathematics professor has proven that his skills go beyond the art of gambling. He also successfully ran a hedge fund for two decades that provided nearly 20% returns annually.
Enter Dr. Edward Thorp, professor of mathematics at UCLA and, later, MIT. In the late 1950s and early 1960s, Thorp decided to turn his immense math knowledge towards blackjack. He was a recreational player at the time who, like everybody else, was facing a house advantage.
Ed Thorp, the father of quant investing, might be the most impressive market wizard. He turned seemingly random processes into predictable events, transforming the art of speculation into a science decades before Wall Street’s quants became mainstream. His domination in the financial world began in the casino.
Thorp had first envisioned a technique for predicting roulette outcomes as a physics undergraduate. His conjecture was that an orbiting roulette ball could be “like a planet in its stately, precise and predictable path”.
In the second part of our interview with card counter and mathematician Edward Thorp—the father of quantitative investing—he recalled an early brush with Bernie Madoff, described what’s in ...
Edward Thorp is the bestselling author of Beat the Dealer. He revolutionized gambling as he proved how to beat blackjack with card-counting and invented the first wearable computer.