Edward O Thorp And Associates
- Edward O Thorp And Associates Llc
- Edward O Thorp And Associates Cambridge
- Edward O Thorp And Associates Llc
- Edward O Thorp And Associates Inc
- Edward O. Thorp & Associates Hedge Fund
- Ed Thorp
Get reviews, hours, directions, coupons and more for Thorp Edward O & Associates at 610 Newport Center Dr, Newport Beach, CA 92660. Search for other Investment Advisory Service in Newport Beach on The Real Yellow Pages®. While still teaching, Thorp founded Edward O. Thorp & Associates, which he continues to run as of this writing. His first hedge fund returned 15.1% over 19 years, while his overall personal investments have yielded an average return of 20% for 28.5 years (as of 1998). Induction into the Blackjack Hall of Fame.
Anyone with a basic knowledge of blackjack’s illustrious history has heard of Edward O. Thorp. He’s responsible for developing the first and most common strategic blackjack practice known as card counting, as well as the first wearable computer technology in history. Ed Thorp was one of the original 7 members inducted into the Blackjack Hall of Fame in 2002.
From Mathematician to Vegas’ Worst Nightmare
Born August 14, 1932 in Chicago, Illinois, Edward Oakley Thorp’s heightened level of intelligence was evident at a young age. After graduating in 1958 from the University of California, Los Angeles with a B.A. and M.A. in Physics and a PhD in Mathematics, he immediately crossed the country to take a job at MIT, where we worked for two years.
In 1961, he traveled back west to take a job as Professor of Mathematics at New Mexico State University until 1965, and then Professor of Mathematics and Finance at University of California, Irvine until 1977.
But in between all that, Thorp was revolutionizing the game of blackjack.
Based on research into the 1956 Kelly Criterion, Ed began investigating theories of probabilities and application on one of the first superior computers of his time, the IBM 704. He spent mass amounts of time and energy analyzing the game, and with the help of his trusty room-sized computer, developed a winning blackjack strategy that has survived the test of time – the art of counting cards.
Edward O Thorp And Associates Llc
Thorp theorized that, by counting the cards in a specific manner, he would be able to significantly increase his odds of winning, especially towards the end of a deck that was not yet subject to reshuffling.
Application of Research in Nevada
To test his theories on probability and, what would later be coined “deck penetration” by fellow Blackjack Hall of Famer Arnold Snyder, Thorp employed the financial assistance of Manny Kimmel. Kimmel was a professional gambler with ties to the mob, but more importantly, a willing investor, supplying Thorp with a $10,000 bankroll.
Edward’s first night at the blackjack tables in Las Vegas didn’t go so well; not because he wasn’t winning, but because he was. It didn’t take long for casino managers to take notice, thereby expelling the mathematician from their premises one after another. Thorp decided to take his game off the Strip to Reno and Lake Tahoe, where he was able to win $11,000 in his first weekend of experimentation.
Thorp Goes Public with his Research
After beating the casinos to such an extent that he was banned from pretty much all of them, even after using various disguises to continue his lucrative research, word of his discovery got out.
Edward was more than willing to share his knowledge with the blackjack world, and thus authored the most famous gambling strategy book in history, Beat the Dealer, published in 1962. The second edition of the book (1966) revealed that Thorp’s research was aided with his co-invention of the first wearable computer in 1961.
During his time at MIT, Edward teamed up with Claude Shannon to develop the device, which looked like nothing more than a box filled with wires strapped around the waist. Originally designed to beat roulette, the device could be triggered by the tap of his foot, and sent an audible sound to the user via an earpiece. The exact details of the technology were never revealed by Thorpe until 1998 when he published the following manuscript: The Invention of the First Wearable Computer
It’s worth noting that such devices have long since been illegal to use in casinos, but card counting, when performed solely by the mental power of the player, is not.
Thorp’s card counting techniques are still in use today by professional blackjack players, but casinos make sure to reshuffle the deck a lot sooner these days in an effort to thwart successful efforts on the part of card counters.
Thorp Transitions Theory of Probability to Stock Market
Edward Thorp isn’t just one of the best blackjack players the world has ever known. In the late 1960’s he transitioned his focus from casino gambling to Wall Street. In 1967, he published another famous, strategic guide for making money, Beat the Market: A Scientific Stock Market System.
Incorporating his vast knowledge of probabilities and statistics, Thorp was able to discern and exploit numerous anomalies in the pricing of securities markets.
Not-so-coincidentally, due to Thorp’s publication of Beat the Dealer, which directly resulted in a colossal boom of professional blackjack players who learned to count cards and developed teams to beat casino from coast to coast, the securities market was in high demand for technology.
From 1969 to 1998, Edward reported that his personal investments had harvested a 20% annual yield, making him one of the most successful stock market investors in the world.
Thorp is currently the President of a self-titled company, Edward O. Thorp & Associates, based in Newport Beach, California.
Other Gambling Strategies Theorized by Thorp
Although Edward is—and will always be—best known for fashioning the legendary act of counting cards in blackjack, his endeavors into gambling strategies reach much further across the boards. In fact, Thorp’s research began as a theory on how to beat roulette, and that’s what his wearable computer was originally intended to do.
Thorp also found success at the baccarat tables by incorporating his infamous theory of probabilities. Baccarat was a perfect target for the professor because the rules strictly prohibit early reshuffling of the deck, and since players don’t physically handle the cards, it left little room for being declared a cheater by the casino.
As the story goes, he was responsible for assembling a renowned trio of baccarat players, including himself, who ultimately succeeded at beating the house. However, contradictions now exist in his 1985 publication of Mathematics of Gambling that point to the likelihood of casinos dealing deeper than 26 cards before reshuffling.
Thorp’s counting capabilities extended beyond the casinos as well. He developed what’s known as the “Thorp Count”, an elaborate method of counting pips in backgammon that, when properly applied, is said to be 99% accurate. Thorp’s backgammon count is best described by 1983 and 1987 World Champion Bill Robertie in his 1984 book, Advanced Backgammon.
Top Blackjack Sites Online
There are some players in the world of gambling, especially blackjack, that stand out as giants, overshadowing not just their contemporaries and peers but also earlier and future generations of blackjack players, and Edward Thorp ranks right up there with the best. Born Edward Oakley Thorp, this man is a legend, an inductee into the Blackjack Hall of Fame, one of the first seven inductees, in fact.
To a blackjack professional, the name Edward Thorp needs no introduction. Born on 14 August, 1932, in Chicago, he is considered the creator of the blackjack technique called card-counting. Card counting is a popular technique in blackjack that enables players to keep count of the cards that have been dealt out of the deck and the ones that still remain in the deck.
Edward Thorp – Introducing Card Counting to the Player
One look at Edward Thorp’s initial educational achievements gives you an idea about how immensely gifted the man is. He completed his M.A. in Physics and then went on to obtain a doctorate in Mathematics in 1958 from the University of California, Los Angeles. Between 1959 and 1961, he worked at the prestigious Massachusetts Institute of Technology (M.I.T). Later, he taught mathematics from 1965 to 1977 and also taught math and finance between 1977 and 1982 at the University of California, Irvine.
However, Thorp became more popular in an area completely removed from his academic leanings – blackjack. In 1962, he wrote and published Beat the Dealer, a landmark book in blackjack that first introduced the technique of card counting to blackjack enthusiasts. In that book, he brought to the blackjack fan the Ten Count system. This was the first winning blackjack system that the people were introduced to. It was also the first successful math-based system that was published and could reduce the house advantage significantly, giving players a more realistic chance of winning.
Edward O Thorp And Associates Cambridge
Thorp used a computer, the IBM 704, to help him in his research for Beat the Dealer. Once he had sufficiently advanced on the theoretical aspect of his research, he decided to test whether he was right or wrong about card counting in the casinos of Reno, Lake Tahoe, and also Las Vegas. He used $10,000 from Manny Kimmel, a rich gambling pro who was an illegal bookmaker with connections to the mob at one point in time and played blackjack at the casinos basing his play on his theory. He could not have been more right, notching up $11,000 in wins during
The casinos became wary of him and the blackjack players adored him, making him an instant celebrity. The result of his research was Beat the Dealer, which sold more than 700,000 copies and made it to the bestseller list of the New York Times.
Edward Thorp – Other Achievements
Edward Thorp did not stop with writing one book, and turned out to be a man of multiple talents as well. He brought out the revised edition of Beat the Dealer in 1966, introducing readers to the High-Low technique. This technique had been developed by Julian Braun, a computer genius, and was an improvement over the Ten Count system.
In 1966, Thorp wrote another book, Elementary Probability. 1967 saw Thorp making a foray into finance with his offering Beat the Market, a book he co-authored with S.T. Kassouf. Thorp also regularly wrote a column over the years for Gambling Times magazine. Lyle Stuart finally published the contents of this column as a book, The Mathematics of
Along with Jay Regan, Thorp started the first market neutral hedge fund that was based on derivatives. The first hedge fund he launched was Princeton/Newport Partners, which, over a period of 19 years, achieved a 15.1% annualized net return. He is currently president of Newport Beach, California, based Edward O. Thorp & Associates. Edward Thorp, along with Claude Shannon, is also the co-inventor of the first wearable computer. This is a device that casinos nowadays consider illegal, but it speaks volumes of the genius that Thorp was.
For more information about Edward O Thorp you can visit the official Edward Thorp website. The website provides pdf files and listings of numerous publications including the Kelly Criterian.
Edward O Thorp And Associates Llc
*Disclaimer - The players in our bios have not authorized the material on this website. The articles were written based on research. If any of the information you see on this site is incorrect please contact us at info@gamesblackjack.org and we will correct any errors immediately.
Edward O Thorp And Associates Inc
Professional Blackjack Players / Authors