FIRST WATER TRUST

Investment Philosophy

First Water Capital follows a concentrated, value-oriented investment philosophy built around long-term conviction and active capital allocation:

• Value with Growth Catalyst
  Focus on businesses trading below intrinsic value, but with clear triggers or inflection points that can unlock upside.

• Concentrated Portfolio Strategy
  Maintains a focused portfolio to drive meaningful alpha, rather than over-diversification.

• India-Focused Investing
  Strong belief in India’s long-term economic growth, positioning portfolios to benefit from structural tailwinds.

• Dynamic Capital Allocation
  Regularly reassesses positions—adding where upside improves and trimming where valuations exceed intrinsic value.

• Intrinsic Value Convergence
  Core belief that market prices eventually align with intrinsic value over a 5–7 year horizon.

• Beyond Stock Picking
  Emphasis on position sizing, holding period, and portfolio-level optimization—not just selecting stocks.

• Opportunistic & Contrarian Approach
  Actively explores overlooked, out-of-favor, or cyclical sectors where mispricing exists.

• Continuous Research & Review
  Investment theses are constantly tested and refined to ensure relevance and risk-reward alignment.