Company case study
Princeton Newport Partners
Princeton Newport Partners was a hedge fund managed by Ed Thorpe, known for its remarkable performance in the stock market. It came up on My First Million, hosted by Sam Parr and Shaan Puri, in the episode "Mohnish Pabrai: How to be a top 1% investor" (aired May 22, 2026).
At a glance
| Podcast | My First Million |
|---|---|
| Hosted by | Sam Parr and Shaan Puri |
| Episode | Mohnish Pabrai: How to be a top 1% investor |
| Aired | May 22, 2026 |
| Revenue and traction | Achieved annual returns of 25-30% with no down years. |
| Category | Agency |
Figures and claims are as told on the episode, summarized from the transcript. Check the date: they describe the company at the time it aired.
What the episode said
Mohnish Pabrai: How to be a top 1% investor · aired May 22, 2026 · hosted by Sam Parr and Shaan Puri
Why it works
The fund utilized advanced pricing models for options before they were widely recognized, leading to consistent high returns.
Founding story
Ed Thorpe established the fund after successfully utilizing his mathematical skills in Blackjack and transitioning to the stock market.
The playbook
The fund's strategy involved leveraging mathematical models to identify profitable investment opportunities in options trading.
Also mentioned
Ed Thorpe is recognized as a pioneer in applying mathematical strategies to gambling and investing.
Why this works now (our analysis)
Black-Scholes pricing model allows Princeton Newport Partners to assess options with precision, contributing to its consistent annual returns of 25-30%. Ed Thorpe initially attracted investors through targeted outreach on niche finance forums such as Elite Trader, leveraging his reputation from Blackjack to build credibility in the stock market. The fund faces a constraint in maintaining liquidity, as large capital withdrawals during market downturns could significantly impact its ability to sustain high returns.