CNBC – Many hedge funds that placed orders for shares in Alibaba’s initial public offering received woefully small allocations, highlighting the ultra-selective process that favored investors who already have a close relationship with the company.
“It’s pathetic,” one hedge fund manager said Friday morning, a few hours before the Chinese e-commerce giant was expected to begin trading on the New York Stock Exchange. That fund requested $200 million in Alibaba shares and received less than $1 million worth, or one half of 1 percent of the amount requested, the manager said.
