Q3 style performance on the JSE was largely dominated by momentum and mid-caps. The “GNU” trade has materialised across the style universe with the rand-tracker momentum trade yielding very positive returns for investors. More importantly, the stability and positive sentiment emanating from the GNU has manifested strongly across mid-caps, as shown in the relative performance of market cap. weighted small cap performance against the largest companies listed on the JSE. Market cap weighting upweights the largest market capitalisation shares in the small cap portfolio. Since our analysis focuses on the top 100 shares based on market cap, the biggest drivers of the small cap portfolios’ (market-cap weighted) performance are shares that sit in the 70th to 80th percentile based on size. In terms of Q4, our machine learning/statistical forecast models are consistent in their predictions related to the continued positive performance of momentum and growth. Conversely, both models are consistent in their predicted negative performance of value and quality, all else being equal.