Princeton Newport Partners

Princeton/Newport Partners (P/NP) was an early alternative investment management company founded by pioneering mathematical financier Edward O. Thorp in late 1974.[1] The company was developed by assuming the instruments of an earlier venture, Convertible Hedge Associates. The CHA-PNP venture is said to have achieved annualized returns of 15.1 percent after fees until becoming embroiled in the junk bond schemes of Michael Milken's circle at Drexel Burnham Lambert.[2] Thorp and other principals at P/NP were eventually cleared of wrongdoing,[3][4] but the financial burdens imposed by the ensuing Racketeer Influenced and Corrupt Organizations Act investigation forced P/NP to liquidate. Thorp and his circle later regrouped as Edward O. Thorp & Associates.

References

  1. ↑ Fox, Justin (February 5, 2007). "Ed Thorp explains the new hedge fund reality". Time.
  2. ↑ Paltrow, Scot J. (November 7, 1989). "Six in Princeton/Newport Case Escape Tough RICO Sentences". Los Angeles Times.
  3. ↑ Eichenwald, Kurt (August 1, 1989). "Six Guilty Of Stock Conspiracy". The New York Times.
  4. ↑ Paltrow, Scot J. (June 29, 1991). "Racketeering Convictions of 6 Overturned: Wall Street: An appeals court reverses the decisions in the case of Princeton/Newport Partners, the first in which organized-crime law was applied to securities fraud". Los Angeles Times.
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