Letter to our co-investors 3Q19

Letter to our co-investors 3Q19

23 October of 2019

Dear co-investor,

We finish the third quarter of 2019, a period of continuity with respect to previous quarters, in which investors’ money continues to flow towards certainty, at any price, and flees from the most illiquid and/or cyclical companies, despite the attractiveness of their valuation.

This situation is causing an unsatisfactory relative (and absolute) return on our portfolios in the short term, but nevertheless contributes to generating great opportunities for appreciation in the long-term. At Horos it is clear to us that we must flee from the “fashionable”, as comfortable as it may seem to follow them, because our main objective as managers (and co-investors) of our funds is to maximise returns (in the long term) while minimising the risk we incur.

Periods like the present should not make us despair, nor call into question an investment process built with this sole objective in mind. From the fruits we are sowing (our potentials are at historical highs) we will reap the rewards.

As always, I would like to take this opportunity to thank you, on behalf of the entire Horos team, for your trust.

Yours sincerely,

ı——-—ı

Javier Ruiz, CFA
CIO
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.

Finally, we would like to thank you, as always, for placing your trust in this management team and in the Horos Asset Management project


Letter to our co-investors 3Q18

Letter to our co-investors 3Q18

23 de octubre de 2018

Dear co-investor,

This month, we continue with the series of quarterly communications started last July. If in the last letter we devoted an extensive part to explaining what it is for us to be a value investor, on this occasion we would like to delve deeper into the concept of a “safety margin” and, more specifically, into two situations that substantially increase it: convexity and optionality.

In addition, we will review the most noteworthy movements in the portfolios of the products we manage and what we can expect from them in the coming years.

Finally, I would like to thank you, as always, for placing your trust in this management team and in the Horos Asset Management project. You can count on us working to meet your expectations and I would like to take this opportunity to remind you that the entire Horos team is fully at your disposal for anything you need.

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.

Finally, we would like to thank you, as always, for placing your trust in this management team and in the Horos Asset Management project


Investment Europe interviews Horos AM: "We eat what we cook"

Investment Europe interviews Horos AM: "We eat what we cook"

23 of July 2018

On the same date that Spring arrived, Spain’s private equity firm Qualitas Equity Group launched Horos Asset Management, in which it owns a stake consisting of individual investments made by every partner of Qualitas who manages their own money.

Horos’ investment team – led by Javier Ruiz working with portfolio managers Alejandro Martín and Miguel Rodríguez- comes from Metagestión, as does the firm’s CEO and partner José María Concejo. At Metagestión they applied the same investment philosophy currently used, for a period of six years; the formula worked to the extent that the Metavalor fund, managed until recently by the investor trio, gained 15.7% annualised over five years.

Born with a long-term view and linked to the value investment philosophy, the firm takes its name from the etymological origin of the word “horos”, which means horizon, and which was used by the Greeks to refer to the limit where heaven and earth seemed to come together.


Letter to our co-investors 2Q18

Letter to our co-investors 2Q18

23 July of 2018

Dear co-investor,

Today we are starting a series of quarterly communications in which we will delve into different aspects of our understanding of investment, as well as the portfolios and different characteristics of our investment products.

As we made clear in the fund presentation letter (read letter), it is very important that you understand how we invest if you are to have a reasonable idea of what to expect as co-investor in our funds. For this reason, this first quarterly letter will be largely devoted to answering the following question: What does it mean to be a value investor? In addition, we will comment on the main positions of our funds and provide update on the weights of the principal themes of their portfolios, as well as their respective potentials.

Finally, I would like to thank each and every one of the more than one thousand people already joining us on this journey. You can count on us to work to meet your expectations and I take this opportunity to remind you that our investor relations team (Juanjo Ferrer and Rodrigo Blanco), as well as the other members of Horos, are entirely at your disposal as necessity demands.

Yours sincerely,

ı———ı

Javier Ruiz, CFA
CIO
Horos Asset Management


Welcome to you new home

Welcome to you new home

May 23, 2018

Dear co-investor,

I would like to take advantage of this first letter to introduce Horos Asset Management S.G.I.I.C. SA, and the new and exciting project in which I have embarked on, along with Alejandro Martín and Miguel Rodríguez, the managers with whom I have been building a team for years.

Horos was born with a long-term vision. Without such, it would be impossible to carry out the value investment philosophy that characterizes us, and, as you know, requires a timeline of several years. The word “horos” was used initially by the Greeks to refer to the boundary where heaven and earth seem to blend together. From it, etymologically came the word “horizon,” and for this reason we could not think of a better word that describes the essence of this project.

The celebrated Charlie Munger, a trusted partner of Warren Buffett, advises us that the recipe to achieving satisfactory returns over time and to survive in an industry as competitive as ours requires three basic ingredients: a strong investment philosophy, a good head on one´s shoulders and belonging to an organization that reinforces both. The first two ingredients depend one hundred percent on the equity team. At Horos, we have a proven investment philosophy and process that will allow us to fulfill our primary objective of generating value to our co-investors in the long run.

However, getting the third ingredient to the level that we need it may not always be so easy. However, at Horos, we believe a good way to achieve this is with a project where the management team also owns it. We think this is the only way to achieve a true alignment between the style of investment and the management of the organization. That’s why Alejandro, Miguel and I are delighted to become founding partners of Horos. As project partners we have a direct, vested interest in its success. As such, we know that we will all benefit from a stable framework for projects aimed at achieving long-term objectives. Moreover, the three managers are as we have always been in the past: investors of the products we manage. Therefore, we eat what we cook.

Horos will also have Qualitas Equity as a founding partner. Qualitas is a private equity enterprise with a proven track record and a prestige that demonstrates its ability to share and understand the needs of a project with this kind of scope. In addition, we will have José María Concejo as CEO and founding partner of the project. José María will bring extensive experience in the industry and his leadership will allow the fund managers to focus entirely on the execution and management of our strategies.

Our objective at Horos is to always grow in an orderly and consistent manner. We will do so only when the structure allows it, and only through products that can add value to the investor and that have a consistent investment philosophy. Hence, we will be starting with two investment funds, Horos Value Iberia and Horos Value International, and a third, a pension plan strategy, called Horos International PP. These three products will all exbibit the same investment philosophy with which we have managed previous funds over the last many years.

In order to maximize the effectiveness of the operation for the investor, we will utilize Finametrix, the best technological platform in the market. Thanks to the facial recognition system via webcam, all contracts that have single ownership will be able to manage their accounts from the very first minute, without having to deploy any paper sources.

From its inception, Horos will be an asset management firm where the management team is fully aligned with you, the investor. We will pursue the same investment philosophy that has allowed us to achieve very solid results in recent years, which will, as a central objective, generate value for its co-investors.

In closing, I can say no more than to welcome you into what I hope will be your home for many years to come, and to thank you wholeheartedly for your trust in this management team.

With sincere regards,

Javier Ruiz, CFA
Chief Investment Officer
Horos Asset Management S.G.I.I.C. SA