Dynamic Alpha Macro Fund (DYMIX): July 2025 Overview

Welcome to the Monthly Summary

The Dynamic Alpha Macro Fund aims to outperform its benchmark by employing a dual-strategy approach. The fund combines a fundamental global macro strategy with a balanced portfolio of U.S. equities. This blend of non-correlated assets is designed to manage risk and generate what we refer to as “Dynamic Alpha.”

The portfolio is comprised of U.S. Equity ETFs, a global macro futures strategy, and short-term fixed income. The global macro strategy provides long/short exposure to over 40 diverse and non-correlated markets, including currencies, metals, energy, commodities, and financial indices.

We are committed to our shareholders, keeping you informed and ensuring our strategies align with the ever-evolving financial landscape. If you have any questions, feel free to contact us at info@DynamicWG.com.

peRFORMANCE METRICS

* Gross Expense Ratio is 2.00%.  Net Expense Ratio is 1.98%.
* Fund inception was 7/31/2023.
Performance data shown represents past performance and is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Updated performance information and daily net asset value per share (“NAV”) is available at no cost by calling toll-free 1-833-462-6433.

Dynamic Alpha Macro Fund PORTFOLIO OVERVIEW

Contributors:

• Long: Oil, Strategic Equities
• Short: Coffee 

Detractors:

• Long: 2-Year Treasury, British Pound, Gold, Japanese Yen
• Short: E-Mini S&P 500, Natural Gas

Current Positions (as of 7/31/2025):

• Long: 2-Year Treasury, British Pound, Copper, Gold, Silver, Oil, Strategic Equities
• Short: none

Macro Observations and Market Analysis

July: Flat Performance Until the Last Two Days

Market returns are log-normally distributed. Sometimes you lose in a day what you would expect to lose in a bad month. That’s pretty much what happened in July. Our performance was perfectly flat for the month up until the last two days, when we lost close to 9% (in the global macro side, 5.35% for the fund overall as stocks were also down slightly) over a two-day span. Although not enjoyable, the moves were not unprecedented given how markets can behave at times. 

What happened?

• Negative performance for the month was driven half by copper and half by a mix of short US dollar, long precious metals, and long 2-year Treasury positions. Long crude oil slightly offset some of the losses. We had kept our copper position moderately sized in light of the risk of Trump’s ever-changing policies; the magnitude of the drop in the price of copper still had a material impact on our performance.
• Copper tumbled after the Trump administration offered further guidance on their copper tariff policy, with a notice that confirmed tariffs of 50% on semi-finished copper imports. However, the market had expected tariffs on raw or refined copper imports as well, and the absence of those latter tariffs sent the copper market down -17%, to its worst one-day performance ever.
• The drop in copper was potentially exacerbated by hedge fund de-risking and quantitative algorithms that pushed the price down. The copper market has now completely closed the spread that had opened between COMEX (the US copper market) and LME (global copper market) copper.

What did we do in response?

• We simply followed our pre-set risk management parameters by decreasing our exposures to minimize further performance drawdown during the month.
• We completely covered our long position in natural gas, our long position in the Japanese yen, and we covered half of our long position in copper.
• Our portfolio finished the month with six positions, down from nine earlier in the month.

What do we believe moving forward?

• We have full confidence that all the positions in our portfolio will perform well in the months and quarters ahead. Despite the one-day drop, we believe that we are on the cusp of a multi-year bull market in copper due to lack of mine supply and increased demand from electric vehicles, AI data centers, and solar photovoltaic panels. If we are right, the price of copper could double or triple over the next 3-5 years based on our analysis.
• That said, the damage to the copper chart is real, and we don’t want to tie up capital unnecessarily in the red metal if it needs a few quarters to consolidate and grind its way back higher – we will carry our reduced position for now and wait for the market to press back above $5.50 before we add back the piece that we removed just now.
• We have similar conviction on natural gas and the Japanese yen – we will look to re-build the positions we removed in late July later in the year as market price action improves.

Three themes: two that we are all talking about, and one that is being completely missed

1. Tariffs. The markets are clearly happy that the worst-case scenario has been averted with the 15% rates applied to Japan and the European Union. These are still very high rates compared to what everyone expected Trump might do after his election win last November. We believe that companies are finally going to begin to raise consumer prices – effectively a tax, and one that slows down growth.

Figure 1: Source: Nonconsensus calculations

Wage gains have atrophied, and tariffs are likely to be a drag on growth rather than a catalyst for an inflationary impulse.

Negative growth impacts from the tariffs (orange bars above) will have a more pronounced impact on growth moving forward than the positives from tax cuts and fiscal spending (navy bars) in the BBB (Big Beautiful Bill).

• Huge revisions to job growth in May and June. The weakest jobs report in five years landed on Friday, July 31^st, and although the number that posted for July was weak, the bigger news was the -258,000 revisions to the previous two months, with private sector job gains ex-healthcare slowing to a recessionary pace. Headline payroll growth has slowed dramatically:

Figure 2: Source: Pantheon Macro

• Lastly, a monumental sea change in Chinese policy that is being missed as 1 and 2 above take the headlines in Western media. In recent weeks China has begun rolling out new supply side policies to fight both price wars by its corporates as well as deflationary pressures overall.  These policies are known as neijuan, or involution, designed to prevent unproductive competition that drives profit margins to zero across an industry.

Given China’s dominance in global manufacturing, the implications are bullish for commodities in general, from polysilicon and cement to aluminum, copper, and silver. Note that this development is structural in nature and should support our copper and silver positions over a multi-year horizon, whereas Trump’s tariff whims are creating volatility on a very near-term basis. It’s news like this from the world’s leading producer and consumer of commodities that augments our existing bullish conviction despite the uncertainty created by U.S. policymakers.

We look forward to updating you again in September. Please feel free to reach out if we can provide additional clarification on specific ideas, or the portfolio more broadly.

OUR dynamic alpha macro fund LONG/SHORT INVESTMENT UNIVERSE

The list above is not all inclusive.

CONTACT INFORMATION for the Dynamic Alpha Macro Fund

If you’re an advisor or investor interested in learning more about the Dynamic Alpha Macro Fund, you can get in touch through the “Contact Us” page on their website at https://dynamicalphafunds.com/contact-us/. Alternatively, you can directly email your inquiries to info@dynamicalphafunds.com.

IMPORTANT RISK INFORMATION

Disclaimers:

• An investor should consider the investment objectives, risks, charges, and expenses of the Dynamic Alpha Macro Fund carefully before investing. The Fund and summary prospectus contain this and other information about the Fund and should be read carefully before investing. To obtain a prospectus, please call 1-833-462-6433 or access online at https://regdocs.blugiant.com/dynamic-alpha-macro/
• Expense ratios shown reflect gross/net fund operating expenses including acquired fund fees and expenses as per the Fund’s prospectus dated November 1, 2024. The net expense ratio reflects a contractual fee waiver/reimbursement that is in place until 10/31/2025. Absent such waiver, performance and returns would have been lower. The Adviser may discontinue the waiver after the expiration date. Investors should review the Fund’s prospectus for a complete discussion of fees and expenses.
• All investment strategies and investments involve the risk of loss. Nothing within this communication constitutes financial, legal, tax, or other advice, nor should any investment or strategy be undertaken without fully understanding all the risks associated with such an investment or strategy.
• The views, opinions, or advice contained above are solely those of the author and do not necessarily reflect those of Ceros Financial Services LLC or its affiliates. The strategies and/or investments referenced may not be appropriate for all investors, as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
• Ceros Financial Services, Inc., member FINRA/SIPC, distributes the funds and is a commonly held affiliate of Advisors Preferred. Advisors Preferred and Ceros are not affiliated with the funds’ subadvisor, Dynamic Wealth Group, which serves as the subadvisor to the Dynamic Alpha Macro Fund.
• Any performance figures reported are historical and should not be taken as an indication of future performance. Investment in the financial markets involves risk, and there is always the potential of losing money when investing in securities.
• The views expressed about market trends, including opinions on bonds, equities, gold, crude oil, or any other market, are based on current market conditions and are subject to change without notice. These views should not be construed as a recommendation for any specific investment or financial strategy.
• Discussions of supply and demand, including historical context and future forecasts, involve estimates and assumptions subject to significant uncertainties. Actual future conditions (including oil supply, demand, and prices) may vary markedly from the analysis presented.
• The commentary regarding our trading approach and investment views, including short-term trading outcomes and long-term market predictions, represents the opinions of our investment team at the time of writing. Our commentary does not promise or guarantee future investment strategies or performance.
• Our economic outlook, including any predictions of economic conditions or their impact on investments, is speculative and should not be relied upon for making investment decisions. Economic conditions are complex and can be affected by various unforeseen factors.
• Comments made on third-party sites are the views of the individuals and do not represent the opinions or recommendations of Ceros. Ceros does not monitor or endorse these comments.
• Dynamic Wealth Group (“Dynamic”) is an SEC-registered investment adviser. SEC registration does not constitute an endorsement of Dynamic by the SEC, nor does it indicate that Dynamic has attained a particular level of skill or ability. This material prepared by Dynamic is for informational purposes only. It is not intended to substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product.
• Opinions expressed by Dynamic are based on economic or market conditions when this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated.
• Facts presented have been obtained from sources believed to be reliable. Dynamic, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.
• Any reference to an index is included for illustrative purposes only, as an index is not a security in which an investment can be made. Indices are unmanaged vehicles that serve as market indicators and do not account for the deduction of management fees and/or transaction costs generally associated with investable products. Past performance is no guarantee of future results. Actual returns may be lower.
• S&P 500 Total Return Index: The Standard and Poor’s 500 is a capitalization-weighted index of 500 stocks representing all domestic industry groups. S&P500TR assumes reinvestment of any dividends.
• S&P Target Risk Growth Index: The S&P Target Risk Growth Index is designed to measure the performance of equity allocations, while seeking to provide limited fixed income exposure to diversify risk.
• © 2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
• Fund Ranking Disclosure: As of 12/31/24, the fund was ranked #1 in the Morningstar Macro Trading category out of 60 funds for the 1-year period based on total returns. Rankings are based on historical performance and are subject to change.