Letter to our Co-investors 1Q25

Dear co-investor,

We began 2025 with two clearly distinct periods, shaped by the tariff policy announced by the U.S. government in April. The first was marked by notable weakness in the U.S. market, while the second was defined by widespread declines across global markets in response to escalating trade tensions and the imposition of tariffs by the U.S. administration. Although this announcement and its implications took place during the second quarter, its significance compels us to dedicate a large portion of this letter to analyzing what happened and sharing our perspective.

During the first three months of the year, our funds Horos Value Internacional and Horos Value Iberia delivered returns of 5.0% and 11.3%, respectively. As we often emphasize, these short-term results are anecdotal, since our goal is to generate sustainable and satisfactory returns over the long term. That is why we also share the historical track record that Alejandro, Miguel, and I have achieved throughout our more than twelve years working together as a portfolio management team. Specifically, cumulative returns amount to 316% and 254%, equivalent to an annualized return of 11.7% for the international strategy and 10.6% for the Iberian strategy.

Lastly, I am pleased to share that our Horos Value Internacional fund received the 2025 FundsPeople rating, recognizing the consistency and strength of its results over recent years. Additionally, the firm VDOS once again highlighted the five-year performance of Horos Asset Management, naming us the top-performing asset manager for AUM between €100 and €300 million as of the end of 2024. These two achievements reaffirm the importance of our long-term investment process and the need to stay patient in order to fully reap the rewards of our work.