Aug 15, 2022
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.
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