Seeking the purity in finance
Investment philosophy
First Water focuses primarily on Indian Equities. Our investment philosophy centers primarily on a long-only strategy, with a value driven and concentrated portfolio approach.
The focus is on intrinsic value maximization at a portfolio level rather than just market value of individual names. In order to enhance returns, our approach is driven by regularly reviewing the risk-reward of each stock and redeploying capital over the fund life.
Our philosophy is governed that market values shall converge to intrinsic values over a period of time. Our preferred time frame is around 5-7 years in order to allow our investment decisions to play out.
Our focus is India, which is an economy that we believe has a long way to go.
Key themes
Our key investment themes are:
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High real barriers to entry i.e. capital intensive businesses
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‘Out of favor’ and overlooked businesses, including cyclical plays
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Significant gap between market value (market price) and our assessment of intrinsic value
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Diversified businesses, mis-pricing sum of parts
Some of the industries that we tend to focus on are:
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Manufacturing
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Industrials
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Commodities
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Utilities
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Consumer discretionary
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