Paul Enright – Inside Long-Short Equity Investing (Capital Allocators, EP.266)

Capital Allocators – Inside the Institutional Investment Industry

Ted Seides – Allocator and Asset Management Expert

Investing, Capitalallocation, Business

4.8 • 806 Ratings

🗓️ 15 August 2022

⏱️ 69 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Paul Enright 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.

Learn More

Follow Ted on Twitter at @tseides or LinkedIn

Subscribe to the mailing list

Access Transcript with Premium Membership

Show Notes

(3:11) Paul’s background
(8:11) Training at Viking
(10:02) Stock picking
(12:18) Business analysis
(19:54) Liquidity’s impact on valuation
(24:03) Dynamic portfolio management
(28:46) Rebalancing
(32:03) Long/Short Dynamics
(40:50) Compensation structures
(43:11) Current market structure
(50:29) Investment model as a family office
(53:05) Thoughts on Twitter
(57:07) Growing skills as a young PM
(58:57) Advice to PMs in tough times
(1:01:48) Best questions to ask managers
(1:03:11) Closing questions

Transcript

Click on a timestamp to play from that location

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 10,
1:25.4	east.co.O.
1:33.4	Capital Allocators is also brought to you by SRS Aquium.
1:37.2	Want to make sure your M&A processes aren't stuck in the past?
1:43.6	How about partnering with a company that's been defining the future of dealmaking for nearly two decades instead?
1:46.0	When it comes to M&A innovation,
1:52.7	SRS Aquium has reshaped the way deals get done more than anyone else, streamlining processes for maximum efficiency and minimum headaches. Professional shareholder representation, online
1:59.2	M&A payments, digital stockholder solicitation,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Ted Seides – Allocator and Asset Management Expert, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Ted Seides – Allocator and Asset Management Expert and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.