Form ADV Part 2A, Item 4
Angeles Investment Advisors LLC, (Angeles), a California limited liability company, was formed in 2001 by
Leslie B. Kautz, CFA, Howard D. Perlow, CFA, and Michael A. Rosen. Howard Perlow and Michael Rosen are
still active, and each owns greater than 25% of the firm. Angeles is 100% employee-owned. The firm operates
out of one office in Santa Monica, California, and has no parent company.
Angeles’s client base consists primarily of institutional, tax-exempt entities such as foundations, endowments,
operating charities, and retirement plans. Angeles does not usually invest directly in stocks and bonds but instead
acts as a manager of managers for its client base, including investment vehicles managed by Angeles (see “Fund
of Funds” section of this document for additional details). Angeles offers a variety of services, each of which is
described in more detail below.
CONSULTING SERVICES
Angeles provides several consulting services separately or in combination. The primary clients for these services
will be charitable organizations, pension, profit-sharing, 401(k) plans, trusts, estates, charitable organizations,
insurance companies, and governmental entities. Clients may choose to use any or all of these services.
Asset Allocation, Spending Analysis and Asset-Liability Analysis: Studies to determine the target
percentage allocation to specific asset classes and the minimum and maximum ranges taking into
account the client's investment objectives, risk tolerances; special or unique circumstances, investment
time horizon and taxes are conducted. These studies may also integrate the analysis of spending policies
or liability characteristics.
Investment Policy Development and Implementation: An Investment Policy Statement is developed (or
reviewed in the case of an existing policy statement) for each client that provides guidance for the
management and oversight of assets.
Portfolio Structure Analysis: Studies to determine the percentage policy allocation and the minimum
and maximum ranges to sub-asset category attributes such as style, size, active, passive, quality,
maturity, and market allocations are conducted.
Investment Manager Research and Selection: Proprietary manager research is conducted on public and
private category managers, funds and private placements are evaluated to determine success factors and
suitability for clients. This manager research is used to conduct manager searches and selection for
clients.
Custody Review and Search: We will assist clients with a review of custodial relationships, help
negotiate fees and conduct a custodian search, if necessary.
Manager Fiduciary Oversight: Angeles monitors investment managers for changes in organization,
ownership, personnel, investment philosophy, investment process, historical performance, and policies
and procedures on behalf of our clients. Return information supplied by the client or third party data
vendor is analyzed and interpreted.
Performance Measurement and Evaluation: With return information supplied by the client or third party
data vendor, Angeles performs performance measurement services and provides appropriate reporting
to clients. As part of this service, we will routinely monitor and evaluate the performance of the client's
money managers and the overall portfolio.
Negotiation and Handling of Manager Transitions: If a manager is terminated or added, we may assist
in developing a cost-efficient transition plan.
Negotiation for Investment Manager and Custodian Fees: Angeles offers its assistance in the negotiation
of investment vendor fees.
On-site Consultation/Board and Staff Education: We can provide education services, coordinate annual
investment forums and meet with staff and board members on education topics as needed.
DISCRETIONARY SERVICES
Angeles provides continuous advice regarding investments based on the individual needs of a client. Through
discussions in which goals and objectives based on a client's particular circumstances are established, Angeles
develops a client's investment policy and creates and manages a portfolio based on that policy. Angeles may
provide this service to individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, and
corporations. Angeles will manage these advisory accounts on a discretionary basis only. Account supervision is
guided by the stated objectives of the client as outlined in the Investment Policy Statement or advisor guideline
statement.
Angeles will create a portfolio typically consisting of no-load mutual funds, load-waived mutual funds, separately
managed accounts, ETF's, government securities, exchange-listed closed-end funds, limited partnerships,
offshore corporations, and/or private placements, including hedge funds. Angeles will allocate the client's assets
among various investments taking into consideration the overall
asset allocation and management style selected
by the client. The underlying managers will be selected on the basis of any or all of the following criteria: The
fund/manager's performance history; the industry sector in which the fund/manager invests; the track record of
the fund/manager; the fund/manager's investment objectives; the fund/manager's management style and
philosophy; and the fund/manager's management fee structure. Portfolio weighting between funds and managers
will be determined by each client's individual needs and circumstances. Clients will have the opportunity to place
reasonable restrictions on the types of investments that will be made on the client's behalf. Clients will retain
individual ownership of all securities.
LIMITED DISCRETIONARY SERVICES
Angeles will provide advisory services to certain clients that are similar to those services described in the above
summary. However, pre-approval by the client is required before Angeles can implement an investment idea on
that client's behalf. Therefore, this group of clients would not be considered fully discretionary. Under the SEC
definition of regulatory assets under management in ADV Part 1, these clients will be listed as “Non-
Discretionary”.
HEDGE FUND AND PRIVATE EQUITY CONSULTING SERVICES
Angeles also provides consulting services whereby it provides direct private placement (hedge fund or private
equity) research and ongoing monitoring on behalf of clients. If contracted, Angeles will monitor such private
placements and may recommend the sale or purchase of new interests.
As this is a consulting service, it is the client's responsibility to determine which, if any, of such recommendations
to implement. Angeles is not responsible for the purchase or sale of such interests.
FUND OF FUNDS
Angeles acts as the investment adviser to the Angeles Absolute Return Fund LTD; a Cayman Islands exempted
company, the Angeles Absolute Return Fund LLC a Delaware Limited Liability Company, the Angeles Global
Equity Opportunities Fund LLC, a Delaware Limited Liability Company, the Angeles Private Markets Fund, LP
a Delaware Limited Partnership, and the Angeles Private Markets Fund 2 LP a Delaware Limited Partnership,
the Angeles Private Markets Fund 3 LP, a Delaware Limited Partnership, Angeles Private Markets Fund 4 LP, a
Delaware Limited Partnership, and the Diversified Income Fund LLC, a Delaware Limited Liability Company
(individually a “Fund” and collectively the “Funds”). Howard Perlow and Michael Rosen serve as directors of
the Angeles Absolute Return Fund, LTD, and Angeles serves as the sole director of the Angeles Absolute Return
Fund LLC and The Angeles Global Equity Opportunities Fund LLC, and as the investment manager of the
Angeles Private Markets Fund, LP, the Angeles Private Markets Fund 2 LP, the Angeles Private Markets Fund
3, LP, and the Angeles Private Markets Fund 4, LP. The Funds rely on the exclusion to the definition of
“Investment Company” provided by Section 3(c)(1) and Section 3(c)(7) of the Investment Company Act of 1940.
The funds are managed in reliance on the Commodity Futures Trading Commission Regulation 4.7(b), which
requires that investors be limited to “qualified eligible persons” (including non-US persons).
While Angeles has complete discretion and authority to manage and direct the investment capital for the Funds,
it does not invest the Funds’ capital directly. Instead, Angeles identifies third-party managers (Investment
Managers) whose investment strategies and styles are suited to the investment objective, policies, and restrictions
of the Funds. Angeles then allocates the capital of the Funds to the investment discretion of one or more
Investment Managers and/or invests the Funds’ capital in selected investment funds advised by the Investment
Managers (Sub-Funds). This structure is commonly referred to as a Fund of Funds. Angeles will (where
applicable) manage the domestic and offshore versions of the Funds identically, but there will be allocation
differences due to the size and timing of the investments.
ASSETS UNDER MANAGEMENT
Angeles separates its assets into the broad categories described above: 1) Discretionary Services, both full and
limited, and 2) Consulting Services. As of December 31, 2019, Discretionary Services regulatory assets under
management were approximately $5.7 billion and represented 56 clients. Consulting Services assets were
approximately $29.6 billion and represented 16 clients. The Discretionary Services regulatory assets under
management are reported in the Angeles ADV Part IA. Angeles does not report the additional $29.6 billion in
Item 5.F of Part 1A of Form ADV because the SEC definition requires us to exclude these hybrid and consulting
assets. We are including those assets here to give a more complete description of our business.