Dear co-investor,
Finally, a very difficult year for everyone has come to an end. I can add little to the encouragement and gratitude for your trust that we have shown you in our previous letters. May the arrival of the vaccine be the turning point we all wish for our lives.

Indeed, that turning point seems to have already come to the financial markets, with equity indexes experiencing a strong recovery in the last months of the year. This time it was the most cyclical and smaller, less liquid companies that outperformed. Thus, Horos Value Internacional returned 26.3% in the quarter, compared to 11.9% in its benchmark index. On the other hand, Horos Value Iberia posted a return of 27.9%, outperforming the 22.8% rise of its benchmark.

However, we continue to believe that the companies we own in our portfolio, mostly cyclical and smaller companies, have a high upside potential. As you know, our exposure to the commodities sector is a significant feature of our funds. It is therefore very important that you understand how we analyze this industry and select the companies in which we invest. This is what we will be devoting the bulk of this last letter of 2020 to, including an account of our investment mistake in offshore drilling companies. As we always say, in order to improve our investment process, we must detect the mistakes we make and learn what decisions/reasons led us to make them, in order to reduce the chances of these situations occurring again.

My best wishes for 2021.

Yours sincerely,

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

Additionally, you can access december 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.