Dear co-investor,

We finished another quarter affected, to a greater or lesser extent, by the evolution of the pandemic and the decisions made by our governments. It is difficult to get used to this “new normal” situation, but the Horos family sends you all its encouragement and support for these difficult times.

At the market level, after last quarter’s recovery, markets have once again entered a dynamic in which large companies with more predictable earnings are favored by the investment community, to the detriment of smaller companies and those with
more cyclical businesses. Horos Value Internacional has not been immune to this dichotomy of performance, posting a -4.7% return in the quarter, compared to 3.6% of benchmark index. On the other hand, Horos Value Iberia returned -0.8%, outperforming the -6.3% of its benchmark index.

This dynamic, which we already highlighted last year, has even been exacerbated by the uncertainty we are experiencing today, as well as the policies enacted by central banks and governments around the world. At Horos we are convinced that we are not going to play a game in which the risk taken does not compensate for the potential reward of certain investment. We also understand that the current dynamics are not helping our investment style. However, we still prefer to invest where the opportunities exist, without being carried away by the irrational investment flow that feeds on the gains of the same type of companies, making them more and more expensive. History has shown, time and again, that valuations ALWAYS determine the returns we can expect as investors. This time, it will be no different. This is what we will dedicate this letter to.

Yours sincerely,

ı———ı
Javier Ruiz, CFA
Chief Investment Officer
Horos Asset Management

Additionally, you can access september factsheets for Horos Value Iberia, Horos Value Internacional and Horos Internacional PP, where you can see more in detail our top 10 positions for each fund.