Paul Enright - The Buy Side Primer

**Patrick O'Shaughnessy** (0:00)
This episode of Invest Like the Best is sponsored by Canalist. Canalist is the leading destination for public company data and analysis. I'd heard of Canalist over the past few years and became more interested after meeting the founder and CEO last year to pick his brain about SaaS businesses. Founded by a former buy side analyst who encountered friction in sourcing, building and updating models, Canalist is now used by over 300 institutions, including the largest money managers in North America and by a number of guests on the show.
With detailed company specific models on virtually every investable public equity, Canalist clients are able to react more quickly. If you've been scrambling to keep up with the deluge of IPOs and SPACs these days, Canalist has models on Coinbase, Roblox, Qualtrics and everything in between. Their pre IPO models are built as soon as the S1 hits and include all segments, KPIs and non-GAAP figures. If you're a professional equity investor and haven't talked to Canalist recently, you should give them a shout. Learn more and try Canalist for yourself at canalist.com/patrick. That's canalyst.com/patrick.
If you're curious to hear more about Canalist, stay tuned at the end of the episode where I talk to Canalist CEO, Demir Hatt. This episode is brought to you by MIT Investment Management Corporation, also known as MITMCO, the Endowment Office of MIT. MITMCO seeks to find people who are focused on achieving exceptional long-term investment returns. Partner with these firms early and stick around for the very long-term. MITMCO doesn't care how small, new or uninstitutional your firm is, if you have the potential to generate amazing results that supports MIT's pursuit of world-class education, cutting-edge research and groundbreaking innovation. Despite their willingness to invest early, they do not ask for general partner economics and they commit their initial capital for 10 years. To learn more and check out their recently launched page dedicated to emerging managers, visit www.mitmco.org.
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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** (2:24)
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 in the securities discussed in this podcast.

**Patrick O'Shaughnessy** (2:50)
My guest today is Paul Enright, managing partner at Krainos Capital, his family office. Before running his own family office, Paul worked on the buy side at Viking Global for over a decade, managing their consumer and technology portfolios, and before that at Morgan Stanley on the sell side.
I thought Paul would be the perfect person to help me demystify the world of hedge fund investing, explaining the difference between the buy side and the sell side, how long short funds differ from long onlys, and walking through the various jobs in the investing world. In addition to setting that foundation, we also cover the evolution of the buy side, what makes someone a great researcher versus a great stock picker, and various portfolio construction methodologies. Paul brings such a wealth of knowledge and experience to the table, I think this episode will be enjoyable for investing novices and professionals alike. Please enjoy my conversation with Paul Enright.
So Paul, increasingly we're thinking about these things as primers on big topics, and a topic I realized that we've never covered, we always taken for granted throughout the show's five-year history, is just some of the basics of how the buy side and sell side work. You've played this game at the highest levels, I think continue to be a student of it, both of investing but also of the industry and how the space works. So I've really been looking forward to this. I think probably it's appropriate to set the stage with why you're such a perfect person to have this conversation with, with a thumbnail sketch of your history having been a little bit on both the sell and more on the buy side.

**Paul Enright** (4:14)
There's a demystification of this whole process that needs to happen. There's no manual to go and look at it. I am a little bit of a living embodiment of watching it evolve. I actually went to law school.