Dear co-investor,

The year 2021 was one of the best for managers who practice value investing, mainly due to the strong recovery of companies with cyclical businesses, which had been heavily penalized by the investment community in recent years. In the case of the Horos team, 2021 has possibly been our best year as investment professionals. Evidence of this, although always anecdotal, is that Horos Value Iberia was the top-performing fund of its category, with a return of 26.5% compared to 12.3% in its benchmark index. Horos Value Internacional also posted an outstanding return of 37.6% for the year, beating the 27.5% gains 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 20.6%, below the 60.4% gain of its benchmark, while Horos Value Iberia has returned 10.2%, outperforming the 1.3% gain of its index. Moreover, since 2012, returns stand at 195% for the international strategy and 176% for the Iberian strategy, compared to 230% and 71% in their benchmark indices, respectively.

Despite this strong performance in 2021, the new year presents new challenges and sources of uncertainty for investors to prepare for. Certainly, one of them is the energy crisis that many economies are experiencing. In this letter, I will try to explain why this is happening and how we can protect ourselves against it.

Thank you for your confidence.

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.