In 2008, Mr. Gerber developed the Gerber Statistic, which was accepted as an innovation complementary to his own work by the late Dr. Harry Markowitz, the Nobel Prize-winning economist and father of Modern Portfolio Theory (MPT). The Gerber Statistic is utilized by Hudson Bay to identify the co-movement of financial assets, enabling early detection of concentration risks and insufficient diversification. Subsequently, Messrs. Gerber and Markowitz, in a landmark research paper published in The Journal of Portfolio Management, gave further validation to replacing historical correlation in the calculation of covariance with the Gerber Statistic.
