Jay Hoag - Calibrating Market Adoption

**Patrick O'Shaughnessy** (0:00)
This episode of Invest Like the Best is sponsored by Canalyst. Canalyst is the leading destination for public company data and analysis. Founded by a former buy-side analyst who encountered friction sourcing, building and updating models, Canalyst is now used by over 400 institutions, including the largest money managers globally, and by a number of guests on the show. With detailed company-specific models and data on virtually every public company, Canalyst clients are able to ramp up faster, update models instantly, and incorporate the highest quality fundamental data into any workflow. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalist.com/patrick. That's canalyst.com/patrick. If you're curious to hear more about Canalyst, stay tuned at the end of the episode where I talk to Canalyst customer Brandon Weir from BWCP to discuss Canalyst in more detail. This episode is brought to you by Hall Capital Partners. Hall Capital manages more than $40 billion in global multi-asset class portfolios on behalf of endowments, foundations, and high net worth families with investments managed by distinguished investors, many of whom have been guests on this podcast. Hall Capital is always looking for exceptional investment talent at any stage and size with particular focus on diverse teams which they believe better drive decisions and outcomes. If you're raising capital or considering doing so, their team is seeking more great investors with which to partner across asset classes. Alternatively, if you're a passionate investor considering a career change, please reach out to Hall Capital to inquire about joining their teams in San Francisco and New York. To learn more, visit hallcapital.com or email invest at hallcapital.com. That's invest at hallcapital.com.
Hello and welcome everyone. I'm Patrick O'Shaughnessy and this is Invest Like the Best.
This show is an open-ended exploration of markets, ideas, stories, and strategies that will help you better invest both your time and your money.
Invest Like the Best is part of the Colossus family of podcasts and you can access all our podcasts including edited transcripts, show notes, and other resources to keep learning at joincolossus.com.

**SPEAKER_2** (2:14)
Patrick O'Shaughnessy is the CEO of O'Shaughnessy Asset Management. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of O'Shaughnessy Asset Management. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.
Clients of O'Shaughnessy Asset Management may maintain positions and the securities discussed in this podcast.

**Patrick O'Shaughnessy** (2:39)
My guest today is Jay Hoag, co-founder of TCV. If you look at Jay's investment track record, it's a who's who of tech giants with Airbnb, Netflix, Peloton, Zillow and a list that does not stop there.
Needless to say, Jay has a Hall of Fame career. During our conversation, we talk about his own journey founding TCV, what advice he has for visionaries and why he sees advantages for private to public crossover investors. Jay has such a wealth of experience that is on display throughout this episode. Please enjoy my fantastic conversation with Jay Hoag.
So Jay, I've been so excited to do this with you. I think the kinds of companies that you have invested in very actively sort of define this era of business and so we'll dive all over the place. I thought an interesting place to begin though would be with a couple formative experiences for you in your investing life. And I'll let you guide me how far back we want to go here, but I'm always fascinated by the couple key formative experiences that push the path for somebody going forward. What does that call to mind? What is sort of the earliest of those experiences that really shaped how you view the world as an investor?

**Jay Hoag** (3:45)
I have been doing this for a very long period of time. So going back to the kind of when dinosaurs roamed the earth in terms of technology. Quick back when I started as a research analyst for a division of Citicorp on July 1st of 1982, I started not knowing anything about anything right out of school and was given a choice to cover paper forest products, publishing or technology.
And I think if you were to ask most people at the time, at the time, I made the wrong choice by saying, well, this technology thing seems interesting. I don't really know anything about it. Luck played a huge role. And so that was one of the key early formations that helped as I stumbled into the business. Expanding on that technology then was really pretty much in the early days. The PC was getting to go mainstream. It was actually, if you remember way back in time, the onset of the mini computer cycle, industry moved from mainframes to minis to personal computers. As a junior analyst, I was assigned to software. And at the time, that was a really small industry, but that played a huge role in terms of my professional formation.