Markowitz attacks hedge fund diversification claims


Harry Markowitz, one of the pioneers of modern portfolio theory and 1990 Nobel prize winner, has claimed alternative investments such as hedge funds rarely offer the diversification benefits sought by their investors. "The people selling these products claim they have higher expected returns and lower correlations and volatilities than traditional investments. But if you dig deeper, you'll find that isn't really true in most cases," says Markowitz, professor of finance at the University of Ca