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

The conversation explores long-short equity investing with Paul Enright, a private investor from Krainos Capital and former Viking Global Investors employee. Enright differentiates between business analysis and stock picking, emphasizing the importance of understanding both business fundamentals and stock dynamics like valuation, liquidity, and technicals. He advocates for thesis-driven investing over solely focusing on "great businesses," suggesting a strategy that identifies accelerating trends or market misperceptions. The discussion covers portfolio management, including managing gross and net exposure, rebalancing strategies, and the role of shorting in generating alpha. Enright also shares his transition to managing his own capital, his investment model as a single-family office, and his thoughts on market structure changes.