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.

Of course, as we usually emphasize, these results are merely anecdotal, as our goal is to deliver 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 in these almost twelve years of track record amount to 287% and 217% or, in other words, 12.0% annualized in the international strategy and 10.5% in the Iberian strategy.These figures compare with 11.7% and 7.75% annualized, respectively, for their benchmarks. As a result of this work, in 2024 we have been nominated again as best fund manager and best group in Iberian equities by the prestigious fund analysis firm Citywire.

I would like to take this opportunity to inform you that this will be the last time we report on the performance of our benchmark indexes. The increase in costs which we would have to assume to continue comparing our performance with that of these indexes was the main reason behind this decision. In addition, this comparison seems secondary to us given our very active management style (separate from the indexes). Precisely, I would like to devote this quarterly letter to discuss the rise of index investing in recent years and, in particular, its impact on the stock markets and on the active management of mutual funds.