The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Horos Asset Management delivered Q2 2026 returns of 4.9% for its international strategy and 6.6% for its Iberian strategy, bringing cumulative 14-year annualized returns to 12.4% and 12.2% respectively. The manager expresses significant concern about the sustainability of the massive AI investment cycle, with hyperscalers investing an estimated $700 billion in 2026 alone. This has created explosive bottlenecks throughout the semiconductor value chain, driving memory prices up 500-650% and causing companies like TSMC, SK Hynix, and Micron to multiply their market values 5-9 times. The manager compares current dynamics to historical bubbles including the dot-com era and railway mania, highlighting financial vulnerabilities including revenue circularity, demanding valuations, and the SpaceX IPO at $2 trillion valuation despite burning $14 billion in cash. Persistent inflation from structural deficits and the AI investment boom is keeping interest rates elevated, which could derail the cycle. The portfolio was repositioned by exiting stainless steel positions after strong gains and reallocating to undervalued holdings like Suzano, Bolloré, and Compagnie de l'Odet. The manager maintains unwavering focus on margin of safety and investment principles despite decorrelating from index performance.
The manager maintains a disciplined value investing approach focused on margin of safety while expressing significant concern about the sustainability of the current AI-driven capital cycle and demanding equity valuations across technology and semiconductor sectors.
The manager maintains a cautious view toward certain markets and companies more exposed to the unsustainable dynamics of the AI investment cycle, which decorrelates the fund from index performance. They emphasize they will never abandon their investment principles, with the goal remaining to achieve satisfactory and sustainable long-term returns. The focus continues on building a portfolio that maintains the pillar of margin of safety, watching from the sidelines as the current euphoria plays out. The manager acknowledges no one can know how the AI revolution will end, but warns about the danger of very high expectations placed on certain companies, preferring to focus on investments with attractive valuations and better risk-reward profiles.
As of Jul 29, 2026
Founded in 2018 by three experienced investment professionals - Javier Ruiz (CIF), Alejandro Martín, and Miguel Rodríguez - Horos Asset Management has demonstrated exceptional growth managing €340 million across 14,000+ investors as of November 2025. The founding partners maintain strong alignment with investors by owning approximately 11% of managed assets and holding 60% ownership of the management company. The management team's track record spans over 13 years with cumulative returns of 390% for the international strategy and 318% for the Iberian strategy. The team includes CEO José María Concejo and team member Beatriz Martín, all working together to implement their disciplined value investing approach. The founders serve as significant investors in their own products, ensuring strong alignment with external investors.
Horos follows a disciplined value investing philosophy built on five core principles: understanding the business, reducing risk, identifying unique companies, analyzing management quality, and maintaining a margin of safety. The firm emphasizes investing with common sense and focuses on purchasing stocks that are undervalued relative to their intrinsic worth. They target companies with strong fundamental characteristics including low debt levels, unique competitive advantages, and competent management teams. Horos recommends a minimum holding period of five years, reflecting their long-term investment orientation. The firm actively avoids quasi-bubble dynamics in markets, instead focusing exposure on geographies and sectors offering high margins of safety.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The letter demonstrates moderate-high conviction through several factors. The manager names specific positions with sizing (top 10 holdings listed with percentages: Pluxee 5.1%, Naspers 4.2%, TGS 3.8%, etc.) and provides detailed thesis explanations for new investments like Suzano (3.3%), Bolloré (2.2%), and Compagnie de l'Odet (1.5%). The portfolio contains concentrated positions in specific themes (Holdings and Asset Management at 21%, Oil and Gas at 8%). The manager uses declarative language about maintaining investment principles and never abandoning their approach. However, the portfolio is diversified across multiple positions and geographies, with hedging language present ('no one can know how this will end'). The 14-year track record of 12.4% annualized returns demonstrates long-term conviction in their process. The combination of named, sized positions with clear theses, thematic concentration, and unwavering commitment to principles, balanced against diversification and some uncertainty acknowledgment, justifies 0.68.
Growth Outlook
Market outlook remains low conviction: Horos leveraged Q1 2026 market volatility from AI disruption, private credit stress, and Iran war to rebalance portfolios toward higher return potential. Despite modest quarterly p...
Risk Appetite
Risk appetite posture is moderate conviction: Horos leveraged Q1 2026 market volatility from AI disruption, private credit stress, and Iran war to rebalance portfolios toward higher return potential. Despite modest quarterly p...
Capital Deployment
The portfolio activity described is primarily rotation rather than net deployment or de-risking. The manager exited positions (Acerinox, Aperam, Talgo, Vermilion Energy bonds, Cirsa bonds, Covestro) and used proceeds to initiate or increase other positions (Suzano, Bolloré, Compagnie de l'Odet, Cirsa equity, Línea Directa, Fertiberia bonds, Serica Energy bonds, Performance Shipping bonds). The letter describes 'reallocating capital to investments with better risk-reward profile' and 'using proceeds from these sales to increase exposure' to other sectors. No explicit cash level changes are mentioned. The manager trimmed winners (TGS, Sopra Steria) after strong gains but reinvested in other opportunities. This represents capital rotation with no clear evidence of net cash increase or decrease. Following the rotation rule, this scores near 0.00, with slight positive bias (0.05) given the active redeployment into new positions rather than sitting in cash.
Forward Guidance
Forward guidance signal: Horos leveraged Q1 2026 market volatility from AI disruption, private credit stress, and Iran war to rebalance portfolios toward higher return potential. Despite modest quarterly p...
Language Signal
The language throughout the letter is dominated by risk and caution terminology. Key phrases include: 'turbulence lurking beneath the surface,' 'unsustainable capital cycles,' 'clear euphoria and complacency,' 'hopes-and-dreams stock,' 'financial vulnerabilities,' 'demanding valuations,' 'danger of very high expectations,' and extensive comparisons to historical bubbles. The manager uses terms like 'concerned,' 'cautious,' 'warning,' and 'risk' repeatedly. While some opportunities are discussed (Suzano described as 'very attractive current valuation,' new positions as having 'better risk-reward profile'), the overwhelming balance of directional language is bearish and risk-focused. The extensive critical analysis of SpaceX, semiconductor valuations, and AI cycle sustainability heavily weights the language signal negative. Score of -0.50 reflects this clear preponderance of bearish language.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Horos leveraged Q1 2026 market volatility from AI disruption, private credit stress, and Iran war to rebalance portfolios toward higher return potential. Despite modest quarterly p...
Opportunity Density
The manager demonstrates selective opportunity identification rather than broad abundance or scarcity. The letter describes finding 'better risk-reward profile' investments to replace exited positions, initiating multiple new positions (Suzano, Bolloré, Compagnie de l'Odet, Cirsa, Línea Directa) with detailed theses explaining why each is attractive. Phrases like 'very attractive current valuation' (Suzano), 'trading at a large discount' (Bolloré), and 'current share price does not reflect the quality of its business' (Cirsa) indicate identified opportunities. However, the manager also emphasizes caution, 'watching from the sidelines' regarding the AI cycle, and avoiding overvalued technology/semiconductor sectors that dominate indices. The portfolio changes suggest opportunities exist but require selectivity and patience - not a rich, broad opportunity set but not scarce either. This selective but active opportunity identification in specific areas while avoiding others justifies 0.55.
Time Horizon
The letter demonstrates a multi-year investment horizon with patience for thesis realization. The manager emphasizes that 'short-term results are of little significance' and highlights their 14+ year track record with 12.4% annualized returns, stating their goal is 'to achieve satisfactory and sustainable long-term returns.' The investment theses described (Suzano's cost efficiency through cycles, Bolloré's multi-year value unlocking through corporate simplification, Cirsa's scaling through acquisitions) imply multi-year timeframes. The manager holds positions through volatility (maintained exposure through recent market turbulence) and focuses on 'what truly matters for long-term investors: the margin of safety of our investments.' However, the letter also discusses quarterly portfolio changes and near-term market dynamics, with some tactical trimming after strong short-term gains. The emphasis on long-term principles and track record, combined with patient capital allocation and multi-year theses, balanced against quarterly activity, justifies 0.72 - a clear multi-year horizon but not the decade-plus permanent capital timeframe that would score 0.85+.
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