Dynamic Alpha Macro Fund MARCH 2026 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 1-833-462-6433.

Dynamic Alpha Macro Fund PORTFOLIO OVERVIEW

Contributors                                        

• Long: Corn, oil
• Short: E-Mini Nasdaq 100

Detractors

• Long: 10-Year Treasury, 2-Year Treasury, British Pound, Canadian Dollar, Copper, Japanese Yen, Strategic Equities
• Short: Coffee, Live Cattle

Current Positions (as of 3/31/2026)

• Long: 2-Year Treasury, Corn, Strategic Equities
• Short: E-Mini NASDAQ 100, Live Cattle

MACRO OBSERVATIONS AND MARKET ANALYSIS

This Month’s Performance

A terrible month

We had a terrible month; there’s no sugar coating it.

We have been reading as much as we can about the outbreak of war in the Middle east, the potential impact both near-term on the price of oil and longer-term on downstream markets for fertilizer, aluminum, and others – many of which will be impacted for many months. We did not allow any of our fundamental analysis of the linkages between the war and the impact on growth and inflation expectations – or any other economic variables – to impact our trading this month.

In a month like March, we rely solely on technical analysis and put fundamental analysis aside when it comes to decision making. We simply cut risk, multiple times.

We reduced exposure in four waves during the month:

• We closed out one-quarter of our bond position mid-month, closed out part of our US dollar short (via long Japanese yen), and closed out our profits in crude oil (one of our only winning positions this month)
• We trimmed another quarter of our bond position a few days later, along with our copper position and half of our British pound position
• We trimmed yet another quarter of our bond position a few days hence
• We finally closed out our bond position fully in the third week of the month, as rates continued to rise

All in all, we reduced our gross exposure by 75-80% (on the global macro side) over the course of the month. In doing so, we followed the time-tested rules of classic discretionary macro: reduce exposure in a drawdown, focusing only on price action and ignoring any fundamental viewpoints. Although we strive to keep single months below a -10% loss (for the global macro half), months like March have happened in the past and will surely happen again.

Crude oil

We won’t offer our thoughts on where oil will trade in the days and weeks ahead; we have no idea.  As many commentators have noted, now that floating oil on water has been drawn down, oil could easily head to $200 if the war escalates. Oil will likely stay high in the months ahead. It’s also possible that a recession-driven reduction in demand is needed to bring prices down.

We did not profit handsomely from our long oil trade. Our thesis for being long oil was predicted on a slow, multi-year bull market in oil, driven by underappreciated demand, particularly in EM countries, relative to the IEA’s (International Energy Agency) bearish forecasts.

Why didn’t we profit much? Our positioning on the oil futures curve, where we held a position long the December 2026 contract, explains everything. When the war broke out, markets expected a quick resolution, lifting the front of the curve (the March and April contracts) by much more than the further out contracts.

Crude oil curve: late Feb to mid-March

Source: Bloomberg

Although we don’t have a view on near-term prices, the war increases the chance of a global recession over the coming 6-12 months. Were that to occur, leading to a meaningful correction in the price of oil, we would look to reestablish our position.

Looking forward

Forward looking thoughts that are top of mind for us:

• Equity markets traded in a narrow range throughout March, mainly due to aggressive purchases of downside protection via options by both retail and professional investors, pinning prices in a range due to dealer hedging. This is not sustainable for long. Equity markets feel the way they did in fall 2007, as they hit an all-time high despite increasing signs of credit stress in subprime mortgages; more recently equity markets also ignored the onset of Covid-19 for two months before adjusting downward viciously in March 2020. It feels as though broad equity indices are similarly sleepwalking and ignoring coming storms that they will ultimately be forced to price in.

• Ironically, even though we removed our entire bond position during the month for risk management purposes, our fundamental conviction in our view that rates will drop has increased over the month. Markets have strangely priced in no hit to economic growth, and a large bump up in inflation. We see a recession brewing, and a Fed that is now trapped into holding firm on rates due to the damage to their reputation from missing the inflation outbreak in 2021-2022. This increases the odds that the Fed will have to panic cut rates as growth stumbles later this year. We will carefully reload this theme if the price action validates our thesis on rates.

• Precious metals have endured a sharp correction in March. Online commentators speculate that Gulf countries have been selling to raise cash to fund defense and rebuilding of infrastructure; this sounds a bit extreme. More likely, margin calls and degrossing by large CTAs and pod shops caused the sell-offs, as firms closed out profitable positions, raising cash and reducing margin use. We continue to believe that gold is in the early stages of a decade long secular bull market and will look to reload our precious metals position as the year progresses.

Current portfolio

Given the large reduction in exposure, our portfolio has been pared back to the following:

[1] Short U.S. dollar. The dollar rallied a bit in March, due to its usual safe haven characteristics. But what surprised us was how tepid that rally was. Global pools of capital likely can’t view the U.S. as a credible, rational safe haven any longer. The need to rebalance portfolios away from the U.S. continues. We remain long the British pound and the Canadian dollar.

[2] Short large cap U.S. equities. We continue to hold our short Nasdaq 100 futures position and look to add to it in the months ahead, as equities appear increasingly disconnected from both the state of the U.S. economy, where cracks in credit are appearing, as well as the medium-term impacts from the war in the Middle East.

[3] Long corn and short live cattle. These uncorrelated, diversifying positions still appear fundamentally and technically sound to us.

Fertilizer price shock

Source: CME, BCA Research

The price of urea, which impacts nitrogen-based fertilizer and is applied heavily to corn, has jumped massively in recent weeks, at the worst possible time, as farmers in the northern hemisphere prepare for planting and application.

The price of oil affects farming globally, as an input into both fuel for tractors and fertilizer. If less fertilizer is used this season, alongside a shift toward soybean acreage (which uses less fertilizer than corn), corn’s nascent bull market could accelerate.

Cattle prices continue to form a large technical top, as underlying cash prices for beef trade sideways – this holding pattern will likely break soon. Consumers are increasingly stretched and will shift toward cheaper pork and chicken. We are on the cusp of demand destruction for red meat; we remain short cattle.

It’s never enjoyable to write a letter after a tough month, but we remain fully confident in how our views will transpire over the remainder of 2026.

As always, we remain nimble. If the data and/or our views change, we can pivot our positioning and find other trades within the 40+ markets we have available. This is also why we maintain a strategic allocation to U.S. equities in our overall fund strategy, balancing a buy-and-hold approach with active global macro long and short positions.

We Are Here To Help

We appreciate your continued trust and partnership and look forward to updating you on our progress in the coming months. Please feel free to reach out if we can provide additional clarification on specific ideas or the portfolio more broadly.

If you are a financial advisor and would like more information on our multi-dimensional approach towards asset management, you can download our white paper titled Busting Seven Risk and Return Myths by visiting our website at DynamicWG.com, or email us at info@DynamicWG.com. If you are an individual investor, we are happy to address any questions you may have and put you in touch with a qualified advisor, if so desired.

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.
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• 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.
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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.