Dynamic Alpha Macro Fund (DYMIX): October 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

* Expense Ratio is 1.81%.
* 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 1-833-462-6344.

Dynamic Alpha Macro Fund PORTFOLIO OVERVIEW

Contributors                   

• Long: Gold, Silver, Strategic Equities
• Short: None
  

Detractors

• Long: 2-Year Treasury, British Pound, Natural Gas, 10-Year Treasury
• Short: Coffee, Life Cattle, E-Mini NASDAQ 100
  

Current Positions (as of 10/31/2025)

• Long: 2-Year Treasury, 10-Year Treasury, British Pound, Natural Gas
• Short: Coffee, Silver, Live Cattle

Macro Observations and Market Analysis

A diversified portfolio

When finance undergrads first encounter the term diversification, it’s usually within the context of adding stocks to a broader portfolio to reduce single stock, or idiosyncratic risk. Once you reach 20-25 stocks – ideally equally weighted – you’ve generally mitigated the negative impact of any single stock and are left mainly with market risk.

Today, given the extent to which both U.S. and global equity markets are levitating based on the performance (market cap weighted) of 7 or so mega-cap U.S. tech stocks, most equity portfolios could easily fall 40-50% in a recessionary environment, taking years to recover. There’s nothing diversified about it.

In contrast, we currently hold what we believe to be a truly diversified portfolio:

#	Position	Direction	Outlook
1.	US 2Y Treasury Notes	Long	Recession accompanied by rapidly rising unemployment rate leads to aggressive Fed rate cuts
2.	US 10Y Treasury Notes	Long	AI datacenter CapEx bust leads to brief deflationary period due to wealth destruction and spending downturn
3.	Live Cattle	Short	Pinched US consumer / households cut back away from beef in-favor of cheaper meats (e.g., chicken, pork)
4.	Coffee	Short	Improving supply from Brazil as multi-quarter top emerges following false Oct. breakout on unfounded supply fears
5.	British Pound	Long	Contrarian view on a major currency that offers deep value and benefits from positive global (ex-U.S.) growth
6.	Silver	Short	Technical trade fading recent parabolic price spike and retail participation | uncorrelated
7.	Natural Gas	Long	Strong demand for use as a bridge fuel for U.S. datacenter expansion, and a positive play on economic growth

Except for the 2-year Treasury, our current positions are all starter-sized, allowing us to carefully add to some as they trend in our favor (or conversely, remove from others as they hit our pre-determined exit points).

Above, 2 and 7 are of particular interest. At first glance they appear to be in conflict. The former is tied to a negative outcome for AI hyperscalers, while the latter seems to benefit only if spending on datacenters continues. It’s certainly plausible that for one of these ideas to work, the other should fail. Yet, we see the possibility that natural gas prices rise due to continued datacenter build-outs while mega-cap tech stocks fall during a deflationary recession and 10-year yields plummet. Large tech stocks could re-price from 30x earnings to 15x, while management simultaneously doubles-down on AI-related spending, in what they perceive to be an existential, winner-take-all battle for compute. In fact, we see this as a very likely outcome.

The trades above have very different drivers, from a consumer-led pullback in household spending to recession with rising unemployment to a U.S. datacenter CapEx bust. Some are just plain non-correlated ideas; They offer real diversification.

Gold and the yield curve

Now for a quick note on gold and its lack of a cohesive message with the yield curve. Gold skyrocketed from $600 to $1,000 in 2007, just ahead of the Global Financial Crisis. It signaled an oncoming deflationary shock, not ‘debasement’ or inflation. Today, 5-year/5-year forward inflation breakevens, which are an estimate of expected inflation over the 5-year time period that begins 5 years from now, are disagreeing with the inflation/debasement thesis.

Breakevens: No signal of a looming inflationary crisis

Source: BCA Research

Much of the macro commentary we come across appears to have a bias in favor of a yield curve steepener (going long short rates, and short long rates). The thesis: continued labor market weakness and an economic downturn will lead to aggressive Fed rate cuts. All the while, the U.S. fiscal situation (and the way [MO1] long rates traded during Liberation Day in April) implies a continued rise in long-end yields. Thus, the steepener is considered to be the “safe” way to position for continued fiscal turmoil without taking on a directional view on rates. We respectfully disagree with the thesis outlined here and instead see a flattener as more appealing, as a recession triggered by a CapEx bust leads to falling yields across the curve.

The current focus on what Wall Street has dubbed the ‘debasement trade’ seems misplaced to us. Gold was fundamentally a screaming buy two years ago, when it barely hazarded a mention on the last page of the Wall Street Journal. With gold making front page headlines in recent weeks, the time for a meaningful correction has likely arrived.

We have trimmed our precious metals position and – given the extremely stretched technical positioning of the silver market – added a short position in silver.

Positioning in October

While our core themes remain consistent with past updates, the expression of our themes changed in October. Notably, we closed our long gold and long silver positions early in the month – after market exuberance pushed prices to our profit targets – and are now short silver. While we believe a multi-year bull market in metals lies ahead, silver’s move above $50 (for the 3^rd time in history) provided an appealing opportunity to capture the pullback as sentiment resets in the months ahead. Elsewhere, we complimented our mild, disinflationary recession thesis by adding a long position in 10-year Treasury notes. With consumer confidence eroding and demand destruction resulting from a CapEx bust, we can envision rates falling further than expected out the curve, in addition to the front-end – hence the “curve flattener” (which is not duration matched).

We close with a parting thought, to note that the month’s changes were made proactively in anticipation of economic and correlation changes across markets. In contrast to our July update, the moves were not reactive nor were they spurred by a single event or risk-management. Our commitment is to constantly watch the markets, pressure test our hypotheses, and – when the fundamentals change – act on our best opportunities.

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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 1-833-462-6344 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.
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• 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.