The article suggests he came up with arbitrage vs. other bettors in 1990, a kind hedge fund for horse racing “without precedent”.
On the contrary, my college roommate and I had Dr. Z’s Beat the Racetrack from 1987:
> Benter had achieved something without known precedent: a kind of horse-racing hedge fund, and a quantitative one at that, using probabilistic modeling to beat the market and deliver returns to investors.
In fact the 1987 edition was even preceded by Beat the Racetrack by William Ziemba from 1983, a decade earlier than the innovation described in detail here:
From the book blurb:
William Ziemba and Donald Hausch explain the fundamentals of track racing and show how patterns of public inefficiency in betting pools can lead to you reaping big payoffs. Rather than focusing on the complicated details of thoroughbred handicapping, the groundbreaking “Dr. Z” system offers mathematical models based on stock-market analysis.
William T. Ziemba is professor of management science at the University of British Columbia, Vancouver, Canada. He is an expert in operations research and portfolio management and has served as consultant to the Canadian government on lotteries and pari-mutuel betting systems. Donald B. Hausch has a doctorate in managerial economics and decision sciences from Northwestern University, and is currently teaching in the School of Business at the University of Wisconsin, Madison.