TAMOHARA LONG TERM EQUITY STRATEGY

Core Investment Philosophy

Tamohara’s framework centers on five key pillars of business evaluation:

• Cash Flow Focus: They prioritize businesses that demonstrate superior or increasing free cash flow generation. They view "growth" as a function of a company's capacity to reinvest its capital and the returns ($ROIC$) produced on that capital.

• Business & Management Quality: They seek high-quality businesses with proven models and leadership positions. Crucially, they evaluate whether management is likely to allow minority shareholders to benefit from the generated cash flows.

• Rate of Change: The team looks for positive triggers, including:

  • Market share gains.

  • Improving Return on Equity ($ROE$).

  • Declining leverage (debt reduction).

• Valuation Discipline: Investments are made based on the "base case" future cash flows to determine a fair entry price today.

• Pre-Mortem Analysis: A distinct part of their process involves identifying idiosyncratic factors that could negatively impact their assumed future cash flow projections before making the investment.