Thorp never was accused of any impropriety, and the government eventually dropped all charges related to Princeton/Newport’s activities, but publicity related to the investigation crippled his fund, and it closed in late 1988, a denouement Thorp describes as “traumatic.” Over its nineteen-year existence, the hedge fund featured annual gains averaging more than 15 percent (after charging investors various fees), topping the market’s returns over that span.
