Background
He was born in Corsicana, Texas.
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John Kelly
Edit ProfileEducation
He graduated with a Doctor of Philosophy in Physics in 1953.
Career
He is best known for formulating the Kelly criterion, a formula to determine what proportion of wealth to risk in a sequence of positive expected value bets so as to maximize the rate of growth of wealth. He spent four years in the United States Navy as a pilot during World World War II before entering the University of Texas at Austin. Kelly"s voice recorder synthesizer vocoder recreated the song Daisy Bell, with musical accompaniment from Max Mathews.
John Kelly was a remarkable character.
Apart from being a physicist he embodied certain stereotypical Texan character attributes being a tough guy, recreational gunslinger and a daredevil pilot all at the same time. Together they developed a Game theory type method based on the principles of information theory developed by Shannon.
Shannon and Thorp also applied the same theory to the stock market with even better results. Over the decades, John Kelly"s scientific formula has become a part of mainstream investment theory and the most prominent users, well-known and successful billionaire investors Warren Buffett, Bill Gross and Jim Simons use Kelly methods.
Warren Buffett met Thorp the first time in 1968.
lieutenant"s said that Buffett uses a form of the Kelly criterion in deciding how much money to put into various holdings. Also Elwyn Berlekamp had applied the same logical algorithm for Axcom Trading Advisors, an alternative investment management company, that he had founded. Berlekmap"s company was acquired by Jim Simons and his Renaissance Technologies Corporation hedge fund in 1992, whereafter its investment instruments were either subsumed into (or essentially renamed as) Renaissance"s flagship Medallion Fund.
Kelly died of a stroke on a Manhattan sidewalk at the young age of 41 in 1965.
lieutenant is reported that he never used his own criterion to make money. General references.
Achievements
Connections
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Born
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Died
November 23, 1965 (aged 42) -
Nationality
United States
Awards
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Medal of Honor; Purple Heart Medal of Honor
Medal of Honor citation Kelly's Medal of Honor citation reads: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty. On 25 June 1944, in the vicinity of Fort du Roule, Cherbourg, France, when Cpl. Kelly's unit was pinned down by heavy enemy machinegun fire emanating from a deeply entrenched strongpoint on the slope leading up to the fort, Cpl. Kelly volunteered to attempt to neutralize the strongpoint. Arming himself with a pole charge about 10 feet long and with 15 pounds of explosive affixed, he climbed the slope under a withering blast of machinegun fire and placed the charge at the strongpoint's base. The subsequent blast was ineffective, and again, alone and unhesitatingly, he braved the slope to repeat the operation. This second blast blew off the ends of the enemy guns. Cpl. Kelly then climbed the slope a third time to place a pole charge at the strongpoint's rear entrance. When this had been blown open he hurled hand grenades inside the position, forcing survivors of the enemy guncrews to come out and surrender. The gallantry, tenacity of purpose, and utter disregard for personal safety displayed by Cpl. Kelly were an incentive to his comrades and worthy of emulation by all.Medal of Honor citation Kelly's Medal of Honor citation reads: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty. On 25 June 1944, in the vicinity of Fort du Roule, Cherbourg, France, when Cpl. Kelly's unit was pinned down by heavy enemy machinegun fire emanating from a deeply entrenched strongpoint on the slope leading up to the fort, Cpl. Kelly volunteered to attempt to neutralize the strongpoint. Arming himself with a pole charge about 10 feet long and with 15 pounds of explosive affixed, he climbed the slope under a withering blast of machinegun fire and placed the charge at the strongpoint's base. The subsequent blast was ineffective, and again, alone and unhesitatingly, he braved the slope to repeat the operation. This second blast blew off the ends of the enemy guns. Cpl. Kelly then climbed the slope a third time to place a pole charge at the strongpoint's rear entrance. When this had been blown open he hurled hand grenades inside the position, forcing survivors of the enemy guncrews to come out and surrender. The gallantry, tenacity of purpose, and utter disregard for personal safety displayed by Cpl. Kelly were an incentive to his comrades and worthy of emulation by all.