Skip to content

Letter to our co-investors 1Q23

Thumbnail

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.

 



View full letter



Thank you for your confidence. Yours sincerely,  

ı———ı

Javier Ruiz, CFA

Chief Investment Officer

Horos Asset Management

Share

Si ya eres cliente de Horos o estás suscrito a nuestra newsletter, habrás recibido esta carta trimestral por correo electrónico. Si deseas leerla, puedes descargarla a continuación o recibirla en tu buzón al suscribirte a nuestra newsletter.

Last publications

2024 Letters to co-investors

Letter to our co-investors 2Q24

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.

September 23, 2024
Thumbnail
2024 Letters to co-investors

Letter to our co-investors 1Q24

Dear co-investor, The start of 2024 has once again been very positive for global equities, continuing the excellent performance already shown in 2023. Our Horos Value Internacional and Horos Value Iberia funds have been part of this trend, posting returns of 5.9% and 1.1%, respectively.

May 24, 2024
Thumbnail
2023 Letters to co-investors

Letter to our co-investors 4Q23

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.

February 13, 2024
Thumbnail
2023 Letters to co-investors

Letter to our co-investors 3Q23

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 c

October 23, 2023
Thumbnail
2023 Letters to co-investors

Letter to our co-investors 2Q23

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

August 7, 2023
Thumbnail
Habla con un agente
Hola 👋
¿Cómo podemos ayudarte?