Terry Gross of NPR’s Fresh Air recently interviewed Ed Thorp, one of the original “celebrity quants” and Scott Patterson of the Wall Street Journal and author of the new book, The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It.
“In 1962, Ed Thorp became every gambler’s favorite mathematician when he published the first mathematically proven method for beating the dealer at blackjack.
Thorp’s work revolutionized the game. But he went further: In 1967, Thorp devised a system that uses math and computers to predict the future of the stock market. His hedge funds and his personal portfolio have been profitable ever since,” the introduction begins.
Gross, one of the best interviewers anywhere, leads a fascinating look at Thorp’s “career” in the casino and his more lasting impact on the financial markets — for better and worse. Thorp calls Wall Street the “biggest casino in the world.”
Patterson’s book chronicles the rise of the quants on Wall Street and the ways in which Thorp and others brought analytics to be a primary driver of decision making in the markets.
Download the podcast here.
