Performance & Risk Metrics (2016-2026)
| Metric | GEM (Dual Momentum) | Larry Portfolio |
|---|---|---|
| CAGR (10-Year Annualized Return) | 13.7% | 9.1% |
| Max Drawdown | -22.0% | -24.5% |
| Sharpe Ratio (Risk-Adjusted Return) | 0.72 | 0.52 |
| Volatility (Annualized StdDev) | 12.5% | 12.2% |
| Best Calendar Year | +33.4% | +28.9% |
| Worst Calendar Year | -10.3% | -19.8% |
| Strategy Type | Tactical Asset Allocation (Trend following) | Passive Portfolio (Strategic Buy & Hold) |
| Rebalancing Frequency | Monthly (on momentum signals) | Annually (fixed target weights) |
GEM Strategy Philosophy
GEM uses momentum to dynamically switch between US equities, international equities, and bonds each month. The strategy is purely tactical — it holds the asset with the strongest recent trend and moves to safety when equities enter bear markets.
Larry Portfolio Philosophy
The Larry Portfolio is a permanently passive strategy that concentrates equity exposure in small-cap value stocks (the highest-returning equity factor) and uses safe short-term bonds to reduce overall volatility. It never trades based on market signals.
Deep Dive
Want to master this strategy? Read our definitive Global Equity Momentum (GEM) Guide to understand the core rules, historical performance, and exact ETF implementations.
Which Strategy is Right For You?
Choose GEM if: You are comfortable with monthly monitoring, invest via tax-advantaged accounts (like IRAs or 401ks in the US, or tax-wrapped accounts in Europe), and want to maximize long-term growth while protecting capital from major multi-year bear markets.
Choose 60/40 if: You prefer a hands-off, "set and forget" approach, have a taxable investment account where frequent turnover triggers capital gains tax, and can emotionally tolerate drawdowns of 20-30% without panic-selling.