Capital Allocation: Principles, Strategies, and Processes for Creating Long-Term Shareholder Value

Product Description
Seize the competitive edge through intelligent, differentiated capital allocation
The intelligent deployment of capital is one of the most effective ways to create long-term value. But despite this, there are very few capital allocation experts on the boards of the largest publicly traded companies, and academic research consistently finds that most firms deploy capital sub-optimally.
Capital Allocation aims to educate senior leaders, board members, investors, students, and anyone interested in business on this important topic. Until now very little has been written on capital allocation outside of academia, even though the strategic deployment of excess capital is an increasingly significant source of competitive advantage for many companies.
David Giroux, Chief Investment Officer for Equities and Multi-Asset and Head of Investment Strategy at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimal capital structure, capital allocation alternatives, mergers & acquisitions, and special situations. Capital Allocation walks you through this critical topic from beginning to end, including:\nStories of companies that allocated capital in ways that created significant shareholder value
Several real-life decision-making models you can use for strategically allocating your firm’s capital
Guidelines for generating high returns in the long term to build sustainable shareholder wealth\nGiroux uses academic research, personal experience, and uncomplicated mathematics to reveal approaches and actions that create long-term value. He provides case studies from Kodak, Comcast, Thermo Fisher Scientific, Danaher, General Electric, Microsoft, and others showing how capital allocation has―and hasn’t―worked in real-life situations. And he shows how to use capital allocation to head off possible activist investors.\nCapital Allocation offers everything you need to know for deploying capital wisely to outperform your competitors over the long term.\nFrom the Publisher
David Giroux is Chief Investment Officer for Equities and Multi-Asset at T. Rowe Price. He also serves as Head of Investment Strategy and Portfolio Manager for the Capital Appreciation Fund, which has been ranked in the top one percentile in both Morningstar and Lipper peer rankings. A Chartered Financial Analyst, Giroux is a two-time winner and five-time nominee for Morningstar Manager of the Year, and a 13-time winner of Lipper’s Best Fund in Category award. In 2005, he was named Best of the Buy Side Capital Goods/Industrials winner by Institutional Investor.
From the Back Cover
"This portfolio manager belongs on the Mount Rushmore of the greatest investors of the decade." —Leo Acheson, Morningstar Director of Multi-Asset Ratings "Capital allocation is not always considered as an equal to business, operational, and people strategies even though it represents at least as much sustained economic opportunity. David Giroux takes his experiences as one of the best investors in the market and converts those insights into a veritable owner's manual to value creation through capital. By doing so, he provides a simple roadmap for management and boards to test the efficacy of their capital strategies—and deliver best-in-class returns for their stakeholders." —Jeff Yabuki, former CEO, Fiserv, Inc. "Capital Allocation brings new important insights to management teams and Boards of Directors. A thoroughly researched and insightful book that gives practical frameworks on how a business can navigate making appropriate capital allocation decisions. David Giroux’s deep credibility makes this book an invaluable resource." —Marc N. Casper, Chairman, President, and CEO, Thermo Fisher Scientific "David Giroux is an astute investor focused on understanding management’s strategic vision and assessing their ability to turn words into action. His deep investment experience, spanning decades of alpha generation, and his pas