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.

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