The LSE Directory / Quant researchers
Edward O. Thorp is a mathematician and hedge fund pioneer who applied mathematical models to both casino gambling and financial markets. His book Beat the Dealer (1962) proved blackjack could be beaten with card counting. He then co-developed an option pricing formula in 1967, predating Black-Scholes, and founded Princeton-Newport Partners (1969-1988), one of the first quantitative hedge funds, generating 19% annualised net returns.
