Dear co-investor,

First of all, I would like to take this opportunity to wish you all the best for the new year. We concluded 2023 with two reasons for celebration. On the one hand, our investment funds closed the year at record highs. This means that, in the more than eleven years that Alejandro, Miguel and I have been part of the portfolio management team, we have delivered cumulative returns of 254% in the international strategy (11.5% annualized) and 203% in the Iberian strategy (10.3%), outperforming their benchmark indexes in both cases.On the other hand, the Horos family of products continues to grow, with the launch of Horos Internacional Empleo PPE and, foreseeably in a short period of time, Horos Internacional Autónomos PPES, two pensions plans that will provide a long-term savings solution for employees and self-employed workers, respectively, replicating our successful international strategy.

Taking a shorter-term view, in 2023 our funds were up 14.3% for Horos Value Internacional (versus 18.1% of its benchmark) and 15.7% for Horos Value Iberia (versus 24.5%). Undoubtedly, as we will see throughout this document, this has been a very atypical year, in which various factors (some of them unsustainable) have dramatically pushed global financial assets higher. For our part, we continue to invest true to our philosophy, always trying to find and exploit those inefficiencies that arise in the market in the most advantageous way possible, in order to meet our goal of generating sustainable and satisfactory returns over the long term.

Thank you for your confidence.

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.

Dear co-investor,

This quarter, the management team formed by Alejandro, Miguel and myself is celebrating eleven years working in the complex and fascinating world of investing. A period in which we have remained faithful to the same investment principles and in which we have always managed two strategies: international and Iberian equities. In these eleven years we have delivered cumulative returns of 236% in the international strategy (11.3% annualized) and 185% in the Iberian strategy (10.0%), outperforming their benchmark indices in both cases. These returns are very satisfactory and we will undoubtedly work to maintain this positive trend in the coming years. Of course, the current high upside potential of our funds leads us to believe that we can achieve this.

Taking a shorter-term view, our funds are up 8.7% in 2023 for Horos Value Internacional (versus 10.9% of its benchmark index) and 9.0% for Horos Value Iberia (versus 16.2%). However, these returns do not reflect a number of very important anomalies that are occurring and which make us cautious about the market and, paradoxically, optimistic about our portfolios for the future. I will devote this quarterly letter to explaining this and the main movements of our funds.

Thank you for your confidence.

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.

Dear co-investor,

These are good times for Horos because, at this moment, almost all of our more than 3,000 clients have positive returns with their investments in our funds and pension plan. A milestone that shows that our investment process continues to bear fruit, as is also reflected in the 236% and 185% total returns that this management team has delivered since 2012, or in annualized terms, 11.5% in the international strategy and 10.2% in the Iberian strategy, outperforming their benchmark indexes in both cases. However, our satisfaction is even greater given that the upside potential of our portfolios remain at historically very high levels. In other words, if our analysis has been correct, the returns we can expect as investors in our vehicles in the coming years will also be very attractive.

The year 2023 is being characterized by a generalized rise in global equity markets. In this favorable environment, our funds have also performed well, up 8.5% in the case of Horos Value Internacional (versus 11.5% of its benchmark index) and 8.9% for Horos Value Iberia (versus 15.8%) in the first six months of the year. However, these gains in 2023 are particularly strong for the NASDAQ-100 technology index, with a return of around 45% and, more worryingly, driven by a very significant multiple expansion. We believe that these higher valuations are being caused, to a large extent, by the expectations that the investment community has placed on the future deployment of artificial intelligence. We will therefore devote this letter to explaining what is happening and what risks we see ahead for the sector and this market

Thank you for your confidence.

Yours sincerely,

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

Additionally, you can access june 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.

Dear co-investor,

New year, new turmoil? The major stock markets of the world ended the first quarter of the year with solid gains, but overshadowed by a banking crisis not seen since 2008. Against this volatile backdrop, our Horos Value Internacional fund gained 6.0% in the first three months of the year, compared to a 5.4% rise in its benchmark index. Horos Value Iberia was up 6.1% over the period, compared to a 10.8% rise of its benchmark.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 34.0%, underperforming the 47.1% gain of its benchmark index, while Horos Value Iberia has returned 10.9%, slightly below the 13.4% return of its index. Moreover, since 2012, the returns achieved by this management team stand at 228% for the international strategy and 177% for the Iberian strategy, compared to 203% and 90% in their benchmark indices, respectively.

Despite these year-to-date gains, a turbulent March saw the abrupt fall of several U.S. banks, such as Silicon Valley Bank, and the most notable collapse of Credit Suisse in Europe. Are the central banks’ rate hikes the cause of this banking crisis? Are the cases of U.S. regional banks so different from what happened with Credit Suisse? Are there other underlying structural problems that explain these recurring crises in the sector? We will devote most of this first quarterly letter of 2023 to try to answer these questions and explain our approach to the financial sector.

Thank you for your confidence.

Yours sincerely,

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

Additionally, you can access march 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.

Dear co-investor,

The fourth quarter of the year was a relief for most markets, reducing part of the significant losses accumulated over the previous nine months. Our portfolios were not immune to this positive change. Horos Value Internacional fund gained 13.7% in the last three months of the year, bringing the 2022 return to 4.9%, compared to a 0.8% gain of its benchmark in the quarter and a decline of -13.0% over the calendar year. Horos Value Iberia, on the other hand, was up 12.1% over the quarter, for a return of -5.2% in 2022, compared to a gain of 11.9% in its benchmark over the quarter and a rise of 2.0% for the year.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 26.5%, below the 39.6% gain of its benchmark, while Horos Value Iberia has returned 4.5%, outperforming the 2.4% return of its index. Moreover, since 2012, the returns of this management team stand at 209% for the international strategy and 162% for the Iberian strategy, compared to 188% and 72% of their benchmark indices, respectively.

Despite the last quarter’s bounce, many indices closed the year with sharp declines. Although many causes may be behind this setback, we are convinced that the tightening of central banks’ monetary policies played a key role. In this letter, I would like to highlight the role that interest rates have played in the evolution of the markets, before and after their major shift to the upside. I will also update on the positive outlook of our portfolios.

As always, we thank you for your confidence and wish you all the best for this new year.

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.

Dear co-investor,

During the third quarter of the year, the challenges that many economies are experiencing in reconciling a tight monetary policy with a recessionary economic environment were confirmed. This conflict has impacted financial markets, leading to significant volatility and declines. Our portfolios were not immune to these movements. Our Horos Value Internacional fund fell -7.1% over the quarter (-7.7% YTD), compared to a -0.6% decline of its benchmark. Horos Value Iberia, on the other hand, was down by -12.9% over the period (-15.4% YTD), compared to -9.1% in its benchmark index.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 11.3%, below the 38.5% gain of its benchmark, while Horos Value Iberia has returned -6.7%, outperforming the -8.6% return of its index. Moreover, since 2012, the returns of this management team stand at 172% for the international strategy and 133% for the Iberian strategy, compared to 186% and 54% of their benchmark indices, respectively.

In addition to the sources of uncertainty mentioned above, there are also those that were already present (the Chinese economy, the Russian invasion of Ukraine and inflation). However, it is in these times of anxiety and market turbulence that the greatest investment opportunities are created. I am not just saying that. In the ten professional years that this management team has just completed (fifteen years in my case), we have also experienced very complex situations. This letter serves as a reminder of what we have faced all these years, our evolution as investors and why staying true to our investment process always pays off.

Thank you for your confidence.

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.

Dear co-investor,

During the second quarter of the year, the dynamics that we have been discussing in previous quarterly letters have not changed. The damaging effects of the energy transition (exacerbated by the Russian invasion of Ukraine), the Chinese economic crisis and high inflation (with its consequent tightening of monetary policies) have continued. This cocktail has led the world’s major stock markets, as well as fixed-income assets, to record one of the worst first half-years in their history. Despite this, our portfolios have continued to weather this difficult environment. Our Horos Value Internacional fund fell -2.0% over the quarter, compared to a -10.2% decline of its benchmark. Horos Value Iberia, on the other hand, was down by -1.0% over the period, compared to -1.1% in its benchmark index.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 19.8%, below the 39.3% gain of its benchmark, while Horos Value Iberia has returned 7.1%, outperforming the 0.6% return of its index. Moreover, since 2012, the returns of this management team stand at 193% for the international strategy and 168% for the Iberian strategy, compared to 187% and 69% of their benchmark indices, respectively.

The sources of uncertainty are many and of significant magnitude. For this reason, it is vital to work with great management teams that can make the most appropriate decisions for their shareholders at all times. We will therefore devote this quarter’s letter to explaining the keys to good capital allocation.

Thank you for your confidence.

Yours sincerely,

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

Additionally, you can access june 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.

Dear co-investor,

The new year began with three major sources of uncertainty that will condition the rest of this year’s market performance: the economic situation in China, the impact of the Russian invasion of Ukraine and the measures taken by central banks to curb current high inflation rates. Against this challenging backdrop, our Horos Value Internacional fund returned 1.4% over the quarter, compared to -3.3% in its benchmark index. Horos Value Iberia, on the other hand, was down by 1.9% over the period, in contrast to a 0.5% gain of its benchmark.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 22.3%, below the 55.2% gain of its benchmark, while Horos Value Iberia has returned 8.1%, outperforming the 0.5% return of its index. Moreover, since 2012, the returns of this management team stand at 199% for the international strategy and 167% for the Iberian strategy, compared to 219% and 67% in their benchmark indices, respectively.

We will devote this letter to dealing with these three major sources of current uncertainty and, as always, to discussing the most significant changes in our portfolios.

Thank you for your confidence.

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.

Dear co-investor,

The year 2021 was one of the best for managers who practice value investing, mainly due to the strong recovery of companies with cyclical businesses, which had been heavily penalized by the investment community in recent years. In the case of the Horos team, 2021 has possibly been our best year as investment professionals. Evidence of this, although always anecdotal, is that Horos Value Iberia was the top-performing fund of its category, with a return of 26.5% compared to 12.3% in its benchmark index. Horos Value Internacional also posted an outstanding return of 37.6% for the year, beating the 27.5% gains of its benchmark.

As usual, I would like to take this opportunity to update our longer-term performance. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 20.6%, below the 60.4% gain of its benchmark, while Horos Value Iberia has returned 10.2%, outperforming the 1.3% gain of its index. Moreover, since 2012, returns stand at 195% for the international strategy and 176% for the Iberian strategy, compared to 230% and 71% in their benchmark indices, respectively.

Despite this strong performance in 2021, the new year presents new challenges and sources of uncertainty for investors to prepare for. Certainly, one of them is the energy crisis that many economies are experiencing. In this letter, I will try to explain why this is happening and how we can protect ourselves against it.

Thank you for your confidence.

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.

Dear co-investor,

The positive stock market performance that began at the end of 2020 continued during the third quarter. This period was characterized by a strong rebound in inflation, as a result of major bottlenecks that have emerged in various industries. Our portfolios are prepared for an inflationary environment such as the current one and benefited from it. Horos Value Internacional gained 3.5% over the quarter and is up 33.6% in 2021, compared to 1.2% and 17.3%, respectively, in its benchmark index. Horos Value Iberia gained 1.7% over the quarter and is up 20.4% for the year, beating the gains of 1.4% and 11.3%, respectively, of its benchmark. Since inception of the Horos funds (May 21, 2018), Horos Value Internacional has returned 17.0% and Horos Value Iberia 4.9%. Since 2012, the international portfolio has returned 186%, while the Iberian portfolio 163%, compared to returns of 204% and 69% in their benchmark indices, respectively.

However, this quarter also saw the Chinese real estate sector begin a potential downturn, after years of strong growth in volumes and prices. Given the relevance of the Chinese economy in our portfolio (both directly and indirectly), I will devote this letter to explain the important regulatory changes announced by its government recently, how they fit into its economic growth model, what the current situation of the real estate sector is and how all of this impacts our investments.

Thank you for your confidence.

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.

Dear co-investor,

In the second quarter, the positive performance that started in November 2020, with the announcement of the launch of coronavirus vaccines, continued. In this “new” environment, value investing has performed well, proving that patience and short-term losses are often essential ingredients for reaping the rewards over the long term. Our funds, of course, attest to this. Horos Value Internacional gained 6.3% over the quarter, compared to 6.4% in its benchmark index, while Horos Value Iberia returned 4.8%, beating the 4.2% rise of its benchmark. Since inception of the Horos funds (May 21, 2018), Horos Value Internacional has returned 13.1% and Horos Value Iberia 3.2%. Since 2012, the international portfolio has gained 177%, while the Iberian portfolio 160%, compared to gains of 200% and 66% in their benchmark indices, respectively.

As we have just pointed out, value investing often goes through periods, of varying lengths, when it seems to stop working. We do not have to go very far to find one of these moments. However, this underperformance is needed for us to be able to obtain attractive returns in the years ahead. Although it may sound paradoxical or inconsistent, it will often be necessary to lose in order to be able to (aspire to) gain more, taking advantage of what is known as intertemporal arbitrage. Given the relevance of this idea, we will devote this quarterly letter to explaining what it consists of and how we can make the most of it.

Thank you for your confidence.

Yours sincerely,

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

Additionally, you can access june 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.

Dear co-investor,

In the first quarter, the trend that began with the announcement of the successful launch of the COVID-19 vaccines in November 2020 continued, characterized by the outperformance of companies with more cyclical businesses, as well as those of smaller size and less liquidity. In this “new” market environment, our funds have had an excellent performance, getting close to or even exceeding their all-time highs. Horos Value Internacional gained 21.5% over the quarter, compared to 8.9% in its benchmark index. In the same period, Horos Value Iberia returned 13.0%, beating the 5.4% rise of its benchmark. Since inception of the Horos funds (May 21, 2018), Horos Value Internacional has returned 6.4%, while Horos Value Iberia -1.6%. Since 2012, the international portfolio has gained 160% and the Iberian portfolio 146%, compared to 182% and 59% in its benchmark indices, respectively.

On the other hand, next May Horos will celebrate its third anniversary, and we can certainly not say that it has been a bed of roses for those of us who are part of this family. In these years we have lived through a period of great political and economic uncertainty (Trump, China, brexit…), in addition to the worst pandemic that humanity has suffered in the last century. A period that, as we have explained throughout our communications, has severely hindered our investment philosophy, with the specialized press announcing the death of value investing. To navigate these turbulent waters, it has taken a lot of patience, calmness and conviction in our work. Personally, the Stoic philosophy, to which I regularly refer, has been a great compass to guide me. I will devote part of this quarterly letter to describing some of its (surprising?) similarities with the value investing philosophy.

Thank you for your confidence.

Yours sincerely,

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

Additionally, you can access march 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.

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.

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.

Dear co-investor,

We finished a quarter marked, once again, by the huge impact that covid-19 has had on our lives. A quarter in which we can at least hope that the worst is over. I would like to give everyone who has been affected much encouragement and, of course, thank all of our investors for their trust and patience in this challenging environment.

At the market level, after the sharp falls in February and March, the world’s stock markets rebounded strongly, which has contributed to cutting the YTD 2020 losses. Our portfolios have not been immune to this recovery, with Horos Value Internacional posting a 16.0% return in the quarter in line with the 16.5% rise of its benchmark index, and Horos Value Iberia returning 14.1%, above the 8.5% of its benchmark index.

Despite this rise in the NAVs, our funds’ upside potential remains close to all-time highs.1 We are well aware that trusting these potentials implies trusting our way of doing things at Horos. That is why I think it is essential to devote this quarterly letter to a more in-depth look at how we analyse companies. In particular, we will study the role of narratives in our investment theses and the upside potential we obtain for our portfolios.

We continue to strongly believe that these are extraordinary times to invest in our funds. We do not have any crystal ball, nor do we have control over the performance of our portfolios (at least in the short term). But what is clear to us is that, if the work we are doing is correct, these high potentials will eventually turn into healthy and sustainable returns over time.

Yours sincerely,

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

Additionally, you can access June 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.