2022 Top Episode #3: Paul Enright – Inside Long-Short Equity Investing, EP. 264
Capital Allocators – Inside the Institutional Investment Industry
Ted Seides – Allocator and Asset Management Expert
4.7 • 841 Ratings
🗓️ 28 December 2022
⏱️ 69 minutes
🧾️ Download transcript
Summary
This week, we're counting down the top 5 episodes of 2022.
Weighing in at number 3 is Paul Enright - Inside Long Short investing. Paul is a private investor managing his own capital under single-family office, Krainos Capital. Paul opened Krainos after a dozen years at Viking Global Investors, the multi-billion dollar long-short equity hedge fund that also has been one of the most successful breeding grounds for talent in the industry. He has a deep understanding of intricacies of long-short equity investing and a knack for explaining it well.
Our conversation covers Paul's career path to Viking, training while there, and advice to early-career investors. We dive into the distinction between business analysis and stock picking, and the importance of portfolio management to investment success. In the process, we discuss liquidity, shorting, portfolio rebalancing, incentive compensation, and market structure. We close with Paul's approach to managing his own money and his answers to a terrific set of questions sourced from his Twitter feed before the show.
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Transcript
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| 0:00.0 | Capital Allocators is brought to you by Ten East, an investment platform for sophisticated investors to access private markets. |
| 0:10.5 | Ten East brings benefits of having your own family office without the cost and headaches of doing so. |
| 0:16.8 | It's founded and led by Michael LaFelle, former deputy executive managing member of Davidson Kempner. |
| 0:24.2 | Michael and his investment team offer members the opportunity to co-invest by offering at their |
| 0:29.1 | discretion. Michael and his team source, diligence, and commit material personal capital to each |
| 0:35.3 | investment. The opportunities shared on the Ten East platform |
| 0:38.9 | offer exposure to private credit, real estate, niche venture and private equity, and other |
| 0:44.5 | idiosyncratic investments that typically aren't available through traditional channels. |
| 0:49.2 | The principles have over a decade track record of investing in these types of exposures |
| 0:53.5 | across more than 350 |
| 0:55.7 | transactions. Post-investment, the Tennis team conducts ongoing monitoring and reporting, |
| 1:01.8 | just as you'd expect from an institutional investment organization. I've known Michael for about a |
| 1:07.0 | decade, and after becoming impressed by the quality of 10 East offerings, its research |
| 1:11.6 | process, and high-quality investment team, I became an advisor to the organization, an investor |
| 1:17.1 | in multiple offerings. You can learn more and join me as a member at 10-east.com. That's the number |
| 1:24.6 | 10, east.co. |
| 1:34.0 | We're counting down the top five episodes of 2022, and we've reached the top three. |
| 1:39.9 | Wing in at number three is Paul Enright, inside Long Short Investing. |
| 1:46.5 | Paul retired from Viking Global a few years ago and shares his deep and nuanced understanding of how the long short model works. Only two to go in this year's countdown. Tune in tomorrow to find out |
| 1:52.6 | your second favorite. Capital Allocators is also brought to you by SRS Aquium. Want to make |
| 2:00.1 | sure your M&A processes aren't stuck in the past? |
| 2:03.4 | How about partnering with a company that's been defining the future of dealmaking for nearly two decades instead? |
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