E83: Arun Chulani (Emerging Markets Analyst, First Water)

Arun Chulani is an Emerging Markets Analyst at First Water Capital, a fund focused on Indian Equities. First Water’s investment philosophy centers primarily on a long-only strategy, with a value driven and concentrated portfolio approach. Arun is a value investor focusing on hard assets (sectors such as steel, cement, rubber, oil etc.) and cyclicals, taking concentrated bets on preferred plays. Prior to First Water he was with NIG, handling an industrials fund with $400M AUM. Arun is also a Chartered Accountant and a graduate of the LSE.In this episode, we will cover:1. Macroeconomic view of the public markets? (2:24)2. Mean reversal in light of the current market environment (5:06)3. When the market is effectively underperforming, how do you invest? (7:52)4. The economics of hedge funds and their investors' attitudes (12:47)5. How does First Water Capital develop an investment thesis like theirs? (14:30)6. What impact does the budget have on First Water Capital investment plan? (22:15)7. What metrics does First Water Capital use to differentiate its sectors? (27:04)8. How do you assure competition in industries with powerful incumbents? (27:57)9. What factors do funds consider before investing in big businesses? (32:10)10. Extrinsic vs. intrinsic value (36:20)11. What according to Arun is the hardest thing for investors to evaluate (39:12)12. Can a slowdown in one industry affect the growth of another due to the marco-climate? (43:41)13. The effects of trickle-down (45:22)14. Tips for making fund investments in public markets (47:49)15. Industries that Arun is bullish on (51:11)