Harry Markowitz, Father of Modern Portfolio Theory, Dies at 95

Harry Markowitz, a Nobel Prize-winning economist who redefined money management by showing that diversification could reduce investment risk while maximizing returns, has died. He was 95.

Markowitz died on June 22 of pneumonia and sepsis at a hospital in San Diego, the New York Times reported, citing Markowitz’s assistant, Mary McDonald.

Markowitz was best known as the father of modern portfolio theory, which he introduced in 1952 in an article published by the Journal of Finance. He broke with traditional investment analysis by focusing on combinations of assets, rather than individual securities.

The theory “dramatically changed the way nearly ...