Ty McGuire Ocean Capital USA Market Stability Executive Summary ETN ETF ETP Hedge Fund Banking Finance Investing

1. Executive Summary
Investment Philosophy
Ocean Capital Advisors’ philosophy is based on the belief that all successful investing
should be thoughtfully focused on three important attributes: Preservation of
Capital | Dividend Yield | Upside Potential.
We believe in providing a financial alternative that addresses the core needs of
our investors. For this reason, focus is placed on risk management while also
allowing the invested capital to generate income. In our view, preservation of
capital is essential to our ETP foundation; we understand our clients’ need
to maintain capital to meet their unique obligations. It is necessary to meet these
core goals in addition to growing the clients’ portfolio and limiting downside risk
while maintaining upside potential.
Ocean Capital Advisors recognizes that uncertainty does not create opportunity. On
the contrary, it creates instability for clients. Certain stock price declines
truly reflect a substantial inability on part of our clients to meet their
investment objectives. These market fluctuations are the undesirable
scenarios that the USA Market Stability ETP was designed to reduce. Portfolio
declines reflect a reduction in our clients’ ability to operate, such as what
occurs in a challenging economic environment. Ocean Capital Advisors aims to
reduce that concern by providing quarterly dividends. A well-structured
portfolio addresses and solves these core concerns. Through our proprietary
hedging, we focus on a portfolio’s long-term competitive advantage and earning
power.
An Emphasis on Protection as well as Income Defines our Value Philosophy
Our emphasis on preservation of capital and income equips us with the ability
to help clients better manage their obligations. We believe this
approach can enable us to produce strong results for the client while
significantly reducing volatility and downside risk.
A Tested Portfolio and Valuation Process
We take into account that we are in a rapidly changing economy where unknown
risks might prove out to be dangerous. In fact, as per observations, many
funds are disadvantaged due to their dependence on questionable metrics such
as “reported” net income and assumptions such as “reversion to the mean.”
To avoid uninformed valuations, we use the approach of replicating the US
economy using three indices. We believe that this approach can procure higher
returns for our clients over time.

2. The Culture at Ocean Capital Advisors
At the core of our culture is the belief that, over time, in-depth fundamental
research cannot outperform the greater market.
Our team’s ability to model, test, and prove new ways of thinking, leading to
significant changes in risk management is an essential part of our company culture.
Investment Objective
Our goal is not only to seek strong performance over the long term but also
to outperform the US economy over a full market cycle while providing stability.
We construct a portfolio to replicate the broader index while providing dividends,
upside potential, and reduced drawdowns. The overall portfolio structure
incorporates the approach of US economic replication along with the use of our
proprietary hedging strategy that delivers excellent risk management.
Investment Process
Step I: Structuring the Index Portfolio
Because of our stance that applying valuation methods to equity allocation tends to be
inefficient, we focus on replicating the US economy by forming an equally weighted
portfolio between three indexes, consisting of real estate, equities, and treasuries. The
inherent diversification of such indexes provides the following beneficial outcomes:
§ Consistent cash flow in the form of dividends
§ A substantial reduction of market risks
Step II: Hedge the Portfolio
We hedge the overall portfolio with a unique strategy that provides us with a
competitive advantage over other hedging approaches that are practiced in the
market. By using our models, we are able to substantially reduce risk at a very low
cost.
We hedge the
overall portfolio
with a unique
derivative
strategy that
provides us with
a competitive
advantage.

3. Step III: Profit Taking and Portfolio Rebalance
Reducing costs is one of our main priorities in addition to delivering quarterly
dividends. To comply with these two main aims of our philosophy, we liquidate shares
held in indexes or underlying securities if there is excess in the NAV calculation, thus
ensuring a quarterly dividend when there is an appreciation of the portfolio. At the
same time, we rebalance the portfolio every six months to take advantage of the natural
flow of the market cycles, thus giving the portfolio time to develop while reducing
operational costs to the minimum.
Conclusion
Ocean Capital Advisors’ USA Market Stability ETP is managed by a team of
experienced investment professionals. Since portfolio managers also act as partners and
investors, our interests are aligned with that of our clients’. The investment process is
Straight forward, cost-effective, and transparent. It is designed to enable us to
potentially outperform the appropriate benchmark or index.
Contact: Ocean Capital Advisors LLC
Email: t.mcguire@oceanquantgroup.com
Email: m.fajardo@oceanquantgroup.com
Email: m.kessler@oceanquantgroup.com
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT
WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. THE VALUE OF INVESTMENTS AND THE INCOME DERIVED FROM
INVESTMENTS CAN GO DOWN AS WELL AS UP. FUTURE RETURNS ARE NOT GUARANTEED, AND A LOSS OF PRINCIPAL MAY OCCUR.
OPINIONS EXPRESSED ARE CURRENT OPINIONS AS THE DATE APPEARING IN THIS MATERIAL ONLY. NO PART OF THIS MATERIAL MAY, WHITHOUT
PRIOR CONSENT, BE (I) COPIED, PHOTOCOPIED OR DUPLICATED IN ANY FORM, BY ANY MEANS, OR (II) DISTRIBUTED TO ANY PERSON THAT IS NOT
AN EMPLOYEE, OFFICER, DIRECTOR, OR AUTHORIZED AGENT OF THE RECIPIENT.
THE PORTFOLIO RISK MANAGEMENT PROCESS INCLUDES AN EFFORT TO MONITOR AND MANAGE RISK, BUT DOES NOT IMPLY LOW RISK.