View from the Middle Kingdom
Angeles recently visited China, meeting with companies based there and observing a money manager’s research process. The visit confirmed our view that China’s economic progress is the most important human development in centuries, as it is lifting a billion people out of poverty and into the world economic system. Its growth is real and sustainable and on a scale hardly imaginable, but it also comes with real social costs and tensions. To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.

Constrained Long/Short (“130/ 30”-Type) Strategies
120/20? 130/30? Is this a new code? Constrained long/short investing is the latest example of the growing convergence in absolute return and traditional long only strategies. A constrained long/short mandate is one in which a manager seeks to maintain full market exposure, but is allowed a limited amount of additional long exposure (e.g., up to 130% of equity) and a limited amount of short exposure (e.g., up to 30% short). Theoretically, a manager with skill in picking stocks to buy should also have the ability to short stocks. Assuming skill, this increased latitude should result in an increase in excess return that exceeds the increase in tracking error, resulting in an increased information ratio... To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.

Overview of “Portable Alpha”
A “Portable Alpha” investment strategy recognizes that true active management skill is very hard to find and uses derivatives to 1) isolate the incremental return arising from that skill once it is found and 2) overlay it onto any other asset class. Like any investment, the resulting return consists of: Asset Class Return (“Beta”) + Active Management Value Added (“Alpha”) – Costs... To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.

Investment Opinion: Activist Investing
Activist investing is an investment approach whereby an investor seeks to influence the strategy of a company. Strategy may be very broadly defined to include acquisitions, divestitures, capital structure, dividend policy and board composition, inter alia. We see two broad aspects of this strategy that may exist separately or together. First, activist investing may seek to remedy conflicts of interest in corporate governance. Secondly, it may be seen as a derivative strategy of value investing that attempts not only to identify undervalued companies, but also to engage those companies to pursue actions that will realize shareholder value... To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.

Globalization of Equity Portfolios
Angeles believes it is appropriate to remove the distinction made between domestic and foreign equities when establishing strategic asset allocation policy. Most investors have a “home bias” in their portfolios that is outdated and inefficient. The characterization of companies as domestic or foreign based on domicile of incorporation appears artificial as business activity has become more globally integrated. We favor utilizing a global, capitalization-weighted benchmark as the reference point for portfolio construction and performance measurement... To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.

Long-term Capital Market Assumptions: 2009
This report presents Angeles Investment Advisors’ updated capital market assumptions as of January 2009. While we believe that the systemic financial risks seem largely contained, there are further risks to the system due to higher credit costs and reduced credit availability that will continue to weigh on the system in the coming years. Historical corporate profits have benefited significantly from the use of leverage and cheap financing; the reversal of this trend will result in slower growth going forward. Aggressive fiscal and monetary stimulus will be an offset to significant deflationary pressures... To access these research papers in full, please contact us via e-mail at inquiries@angelesadvisors.com.