Simon Lack, a founder of SL Advisors in Westfield, N.J., and a hedge fund insider — he allocated capital to hedge funds during his 23 years at JPMorgan Chase — caused a stir earlier this year with his book, "The Hedge Fund Mirage," in which he calculated that the hedge fund industry as a whole lost more money in one year (2008) than it had made in the previous 10 years.
He has also shaken up the way Citi allocates capital and pledged to cut staff numbers by 20% as part of a broader overhaul.
This acceleration in productivity growth has coincided with a sea change in how the economy allocates capital spending.
Sublime because the IPO went smoothly in terms of trading, but also because it shows how the capitalist system allocates capital to growth companies.
But it's probably well below the internal thresholds that G.E. executives use when they allocate capital to acquisitions and new investments.
Cheshin, who still allocates capital to the fund from his own money, admits as much.
Willy-nilly, it allocates capital to investments that seem to offer the best outcome.
Last week Mark Carney, the Governor of the Bank of England and Chairman of the Financial Stability Board, made a speech in Berlin in which he linked allocating capital to green technologies with the prospects for an environmentally sustainable recovery in global growth.
In his annual letter to shareholders, Mr. Buffett this year recalled how he failed to allocate capital properly in the early days, before "eventually I came to my senses".
"The auto industry is a relatively unattractive place to allocate capital," he said.
Management had spun off parts of the business, he said, and could not allocate capital efficiently among the cluster of public subsidiaries.
