Dear co-investor,

The third quarter of 2024 has seen unprecedented volatility in Asian markets, with dramatic swings in the Japanese and Chinese stock markets not seen in decades. Meanwhile, in the West, equity markets have remained relatively stable, with major indices continuing their relentless rise. In this letter, we aim to unravel the underlying causes of recent events in Asian markets. Additionally, we will analyze why, in a financial environment so prone to abrupt changes, it becomes even more crucial to maintain patience and adhere to a robust, common-sense investment strategy like the one we implement at Horos.

In this market context, our Horos Value Internacional and Horos Value Iberia funds posted quarterly returns of 2.9% (9.8% in 2024) and -0.2% (3.0% in 2024), respectively. Of course, as we often emphasize, these results are merely anecdotal, as our goal is to generate sustainable and satisfactory returns over the long term. That is why we always share the track record that Alejandro, Miguel, and I have achieved in our joint career as a portfolio management team. Specifically, the cumulative returns over these more than twelve years amount to 288% and 212%, or, in other words, 11.6% annualized in the international strategy and 9.9% in the Iberian strategy.

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