Mama Bear Portfolio
The Mama Bear Portfolio was introduced by Brian Livingston in his 2018 book Muscular Portfolios (BenBella Books). The underlying strategy is a clone of a momentum-based approach publicly disclosed by Steve LeCompte of CXO Advisory Group, which has been tracked since 2006. At its core, it holds three assets at a time, selected monthly from a menu of nine funds spanning all major asset classes, rotating toward whichever have shown the strongest recent momentum.
Average Allocation
Based on historical average weights across all rebalance periods.
Performance Snapshot
Rolling Returns
| Period | Low | Average | High |
|---|---|---|---|
| 1 Year | -19.5% | +13.1% | +64.3% |
| 3 Year | -2.9% | +12.5% | +34.6% |
| 5 Year | -1.0% | +12.8% | +28.9% |
| 10 Year | +3.3% | +12.7% | +23.9% |
Growth of $10,000
Historical Drawdown
Percentage decline from the portfolio's peak value at each point in time.
Rolling Returns
Annualised return for each rolling period ending on that date.
Annualised return for each 1Y period ending on that date.
Investment Philosophy
Livingston designed the Mama Bear around a specific behavioral problem: most investors abandon their portfolios after losses exceed roughly 25%, locking in permanent damage to their wealth. By targeting drawdowns below 20-25% even during severe bear markets, the strategy aims to keep investors in the game long enough to benefit from recoveries. The monthly rotation mechanic is deliberately simple, requiring only about 15 minutes of attention per month, to make the discipline sustainable for busy investors.
Who It's For
The Mama Bear suits investors who want equity-like growth over full market cycles but can't stomach the deep losses that come with a passive buy-and-hold approach. It works best in tax-deferred accounts, since the monthly rotation generates short-term capital gains that eat into after-tax returns in taxable accounts.
Pros
- Momentum-driven rotation across nine asset classes provides meaningful downside protection during sustained bear markets
- Low maintenance requirement (one potential trade per month) makes the strategy realistic to follow consistently
- Strategy logic and current picks are publicly available at no cost on Livingston's site
Cons
- Heavy reliance on short-term momentum means it can lag significantly during fast-moving bull markets where reallocation is slow to respond
- Monthly rotation frequently triggers short-term capital gains, making this a poor fit for taxable accounts
- Holding only three positions at a time can result in concentration in a single asset class if momentum is clustered
Technical Notes
The Mama Bear selects the three highest-ranked funds from its nine-asset menu using a 5-month (approximately 105 trading day) lookback period. Livingston recommends skipping a rebalance if a holding is less than 20% off its target, though many implementations rebalance monthly regardless with little difference in outcomes. Investors interested in a more aggressive version of the same momentum approach may want to compare the Papa Bear Portfolio, which draws from a larger asset menu.
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