LONGTAIL ALPHA ANNOUNCES APPOINTMENT OF NOBEL LAUREATE HARRY MARKOWITZ AS RESEARCH ADVISOR
NEWPORT BEACH, Calif., January 31, 2018 – LongTail Alpha LLC, an SEC-registered investment adviser and CFTC-registered commodity pool operator and commodity trading adviserfirm that focuses on adding value to portfolios during volatile markets, is pleased to announce the appointment of Nobel Laureate Harry Markowitz as a research advisor. Markowitz, who is known as the “father of Modern Portfolio Theory” for his pioneering work on investment portfolio selection, was awarded the Alfred Nobel Memorial Prize in Economic Sciences in 1990. Markowitz is the principal of Harry Markowitz Company, and an adjunct professor at the Rady School of Management, University of California San Diego.
Markowitz will join LongTail Alpha beginning February 1.
“Dr. Markowitz was not only the inventor of modern portfolio theory, but over the last few decades has continued to do research that has anticipated problems and solutions in finance that form the centerpiece of LongTail Alpha’s approach to financial markets,” said Dr. Vineer Bhansali, Founder and Chief Investment Officer of LongTail Alpha.
A native of Chicago, Harry Markowitz earned undergraduate and Ph.D. degrees in economics from the University of Chicago, where he chose to apply mathematics to the analysis of the stock market as the topic for his dissertation. While researching the then current understanding of stock prices, which at the time consisted of the present value model of John Burr Williams, Markowitz realized that the theory lacked an analysis of the impact of risk. This insight led to the development of his seminal theory of portfolio allocation under uncertainty, published in 1952 by the Journal of Finance.
In 1952, Markowitz went to work for the RAND Corporation, where he met George Dantzig. With Dantzig’s help, Markowitz started to research optimization techniques, developing the critical line algorithm for the identifications of the optimal mean-variance portfolios, relying on what was later named the Markowitz frontier. In 1955, he received a Ph.D. from the University of Chicago with a thesis on the portfolio theory. The topic was so novel that while Markowitz was defending his dissertation, Milton Friedman jokingly argued that portfolio theory was not economics. During 1955-1956 Markowitz spent a year at the Cowles Foundation, which had moved to Yale University, at the invitation of James Tobin. He published the critical line algorithm in a 1956 paper and used the time at the foundation to write a book on portfolio allocation which was published in 1959.
Markowitz won the Nobel Prize in Economics in 1990, while a professor of finance at Baruch College of the City University of New York.