FYI: Ed Thorp is arguably the best investor who never gets mentioned on the lists of history’s best investors.
The investment strategies he developed at Princeton Newport are widely copied today but were new and innovative at the time. A researcher at his firm stumbled across the idea for statistical arbitrage in 1979, a strategy employed by the majority of quantitative hedge funds around the world today.
He came up with an options pricing strategy called delta hedging that was light years beyond anything traders were using at the time. Fischer Black and Myron Scoles would eventually use Thorp’s work to develop their own options pricing formula. The Black-Scholes equation went on to win a Nobel Prize.
Regards,
Ted
https://awealthofcommonsense.com/2019/02/first-mover-alpha/
