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. His circle of associates later regrouped as TGS Management[5]

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.
  5. Mider, Zachary (May 14, 2014). "The $13 Billion Mystery Angels". Bloomberg.
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