First Water Capital Fund, managed by Arun Chulani, has delivered impressive returns, with a 5.4% gain in September 2023, making the 1-year return close to 47% and the 3-year rolling return at 43%. The fund has been ranked number one by Barclay Hedge's in the "Top 10 Equity-Long Only Hedge Funds" category, with a Dollar CAGR of 34%. Chulani attributes the fund's success to sticking with industries they understand and focusing on companies with strong balance sheets. He also emphasizes the need to embrace volatility and manage risk effectively.