Prometheus ETF Portfolio

Preparing To Increase Exposures

Welcome to Prometheus ETF Portfolio. The Prometheus ETF Portfolio aims to allow everyday investors to access an investment solution that combines active macro alpha, passive beta, and strict risk control, all in an easy-to-follow, low-turnover solution. We aim to achieve strong risk-adjusted returns relative to cash, with limited capital drawdowns in depth and duration. We do this in a highly accessible package, which rotates between three highly liquid ETFs, readily available to any investor with a brokerage account.

Our observations are as follows:

• The distribution of macroeconomic regime probabilities shows significant volatility, driven by extremely volatile US markets.

• Our high-frequency tracking of macroeconomic fundamentals shows that downward pressures on inflation have increased, with growth largely unchanged. Meanwhile, earnings expectations have richened further, warranting caution for equity markets.

• Macro market trends are consistent with a tightening liquidity environment, with all assets falling.

• Our systems take signals from markets and the economy to create a comprehensive, high-frequency macro view. Our risk management process has kept us on the sidelines through a heightened period of macro market volatility. As macro uncertainty begins to fade, our sizing will rise. Our current allocations reflect this.

Let's begin sharing the data driving our current assessment of the macro regime and our ensuing risk management and positions.