Convertible Hedge Associates (CHA) was an early alternative investment management company founded by Edward O. Thorp and a partner, Jay Regan, in November 1969.
Based in Long Beach, California, CHA was said by Thorp to have been the first market-neutral hedge fund.
Princeton Newport Partners (PNP), founded in 1974, was stated by its founder, mathematics professor Edward O. Thorp, to be the world's first market neutral hedge fund.
PNP achieved an annualized rate of return of 20 percent after fees for over two decades, without a single down quarter,[2] until becoming embroiled in the junk bond schemes of Michael Milken's circle at Drexel Burnham Lambert.
His circle of associates later regrouped as TGS Management, with focus on statistical arbitrage.