The markets always tend to mimic life which is filled with many ups and downs. The 1st quarter of 2023 drives home the very important point that styles are ‘risk’ factors. What this means is that through time, styles should systematically provide premiums, however they are risky and can therefore underperform over discrete periods. This holds especially true for Q1 2023, with all the major styles, namely momentum, value, quality, low vol and dividend yield underperforming the market as well as their respective anti-factors. The surprise winner amongst the styles was (il)liquidity while last years top performing style, dividend yield experienced an epic reversal, taking last place in terms of performance. The real question now is what can be expected for the rest of 2023, given that after extreme and successive rate hikes, inflation still seems to be globally sticky, bringing the notion of a global recession to the forefront of everyone’s mind. Let’s just hope that if it does happen, its not too severe and produces many opportunities in and across local and global styles.