Dear co-investor,

After wrapping up the second quarter of 2024, we can highlight few new developments in financial markets. The reality is that the euphoric dynamics in the technology sector persist, to a greater or lesser extent, pushing the U.S. stock market to new highs and helping this market to continue outperforming most other regions. This letter will focus on the potential unsustainability of this and the importance of investing with a high margin of safety.

Against this market backdrop, our Horos Value Internacional and Horos Value Iberia funds posted returns of 0.7% (6.6% in 2024) and 2.1% (3.2% in 2024), respectively, over the quarter. Of course, as we always point out, these results are purely anecdotal, as our goal is to generate sustainable and satisfactory returns over the long term. Hence, we always share the performance that Alejandro, Miguel and I have achieved in our joint career as a portfolio management team. Specifically, at the time of writing, the cumulative returns over more than twelve years of track record amount to 281% and 216% or, in other words, 11.7% annualized in the international strategy and 10.3% in the Iberian strategy.

These returns have led our Horos Value Internacional fund to rank at the top of its category in the 5-year ranking prepared by the prestigious investment fund analysis firm Citywire, with Horos Value Iberia in second place in its category (see here). Undoubtedly, these data confirm the importance of investing with a long-term vision and give us the energy to remain faithful to our investment process.

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