Dear co-investor,

We end a year that has marked the beginning of a very exciting project for all of us who make up the Horos team. It has been a tough but very rewarding start, demanding many hours of work and dedication on the part of each of the company’s employees. Thank you and congratulations to each of them.

Thanks also to the more than 2,000 investors who have decided to entrust us with their savings. In a year with such volatility and correction for the markets, your commitment and confidence give us the energy to continue working with the same enthusiasm and dedication as that of the first day.

However, not everything has been a joy in this short period of time. In 2018, we have recognised two investment mistakes which we will discuss in depth in this letter. They won’t be the first or the last mistakes we commit. Analysing and learning from them is part of our work and will contribute to improving our investment process. We could not make them public or dedicate a couple of lines of explanation to them in the portfolio movements section, but, as you well know, we want transparency to always be our hallmark. If you understand what we do and why we do it (and that includes when we make mistakes), it will be easier for you to accompany us through the good and bad times of the market and our portfolios. This is the only way to take advantage of the long-term benefits and attractive potential of our funds.

My best wishes for 2019.

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.

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

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

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