May 2022 / ECONOMICS
QM Equity Quarterly Newsletter
Updates From the First Quarter of 2022
The first quarter of 2022 showed three distinct periods of factor performance with three distinct catalysts. The first two—rotations from growth to value, then from risk to quality—appeared fairly sensible, with the third one—extreme risk-taking and a rally in negative earners—seeming partially counterintuitive and unlikely to be sustained, in our view.
As a result, investment success for much of the quarter depended on knowing what to avoid or underweight, rather than what to overweight. Building on this theme, we are introducing new research on differentiating “durable growth” from “speculative growth” companies that are likely to disappoint.
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May 2022 / INVESTMENT INSIGHTS