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Strategies/Papa Bear Portfolio

Papa Bear Portfolio

TacticalProconservative

Based on research by Brian Livingston · Livingston, B. Muscular Portfolios. BenBella Books (2018).

This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.

Launched 2018
momentummulti asset

About this Strategy

Momentum rotation across 13 diversified ETFs spanning equities, REITs, commodities, and bonds. Holds the top 3 by average 3/6/12-month return, equal-weighted.

The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.

Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.

Strategy Rules

Pro subscribers only

  1. 1For each of the 13 ETFs, compute 3-month, 6-month, and 12-month total returns
  2. 2Calculate composite momentum score = average of the three return periods
  3. 3Select the top 3, allocate 33.33% to each
  4. 4Universe: VTV, VUG, VIOV, VIOG, VEA, VWO, VNQ, PDBC, IAU, EDV, VGIT, VCLT, BNDX

Asset Universe

Pro subscribers only

13 instruments this strategy can hold

VTV
VTV
VUG
VUG
VIOV
Vanguard S&P 600 Value
VIOG
VIOG
VEA
Developed Markets
VWO
Emerging Markets
VNQ
US REITs
PDBC
Optimum Yield Commodities
IAU
iShares Gold Trust
EDV
EDV
VGIT
Intermediate Treasury
VCLT
VCLT
BNDX
Total Intl Bond

Key Differentiators

Monthly rebalancingTactical rotationConservative riskMomentum-based

Research Source

BL

Based on research by Brian Livingston

Livingston, B. Muscular Portfolios. BenBella Books (2018).

Strategy Info

Type
Tactical (TAA)
Frequency
monthly
Next Rebalance
Jun 109:30 ET (10d)
Variants
1
Risk Category
conservative
Tags
momentum, multi asset
Type
Tactical Asset Allocation (TAA)
Trading Frequency
Monthly (last trading day)
Rebalancing
Full portfolio rebalance each month
Universe Size
13 ETFs
Scoring Method
Average of 3-month, 6-month, and 12-month total returns
Selection
Top 3 by composite momentum score
Weighting
Equal weight (33.33% each)
Data Source
Institutional-grade market data (13 months minimum history)

Asset Classes

US Equity (Value)US Equity (Growth)US Small CapInternational EquityEmerging MarketsREITsCommoditiesGoldTreasuriesCorporate BondsInternational Bonds

Papa Bear Portfolio at a glance

Papa Bear Portfolio is a tactical asset allocation (TAA) strategy by Brian Livingston across US Equity (Value), US Equity (Growth), US Small Cap, International Equity, rebalanced monthly. Backtested 1993-11-30 to 2026-05-20 (32.5 years): 11.5% CAGR, 0.83 Sharpe, -24.2% max drawdown, 14.4% volatility.

Type
Tactical (TAA)
Author
Brian Livingston
Rebalancing
Monthly
Risk
Conservative
Period
1993-11-30 to 2026-05-20
CAGR
11.5%
Sharpe
0.83
Max Drawdown
-24.2%
Volatility
14.4%

Papa Bear Portfolio Tactical Asset Allocation Strategy

The Papa Bear Portfolio is the more sophisticated of Brian Livingston's two 'Muscular Portfolios'. It uses a broader 13-ETF universe and a composite momentum score that averages 3-month, 6-month, and 12-month total returns. The top 3 are held in equal weight (33.33% each). The multi-period scoring smooths out noise compared to Mama Bear's single-period lookback.

Backtest Performance (1993-11-30 to 2026-05-20)

MetricPapa Bear Portfolio
Compound Annual Growth Rate (CAGR)11.5%
Maximum Drawdown-24.2%
Sharpe Ratio0.83
Sortino Ratio1.10
Annualized Volatility14.4%
Calmar Ratio0.48
Total Return3347.2%
Backtest Period32.5 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
conservative
Variants
1
Author
Brian Livingston
Source
Livingston, B. Muscular Portfolios. BenBella Books (2018).

Asset Classes

  • US Equity (Value)
  • US Equity (Growth)
  • US Small Cap
  • International Equity
  • Emerging Markets
  • REITs
  • Commodities
  • Gold
  • Treasuries
  • Corporate Bonds
  • International Bonds

Track Papa Bear Portfolio in Your Portfolio

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Disclaimer: BestFolio is an informational tool only and does not provide investment advice, recommendations, or solicitations to buy or sell securities. All strategy signals, backtests, and performance metrics are provided for educational and research purposes. Past performance is not indicative of future results. You are solely responsible for your own investment decisions. BestFolio is not a registered investment advisor, broker-dealer, or financial planner. Always consult a qualified financial professional before making investment decisions.

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