MULTIPOLARITY PRESENTATION BY MICHAEL ROSEN AT THE 2017 ANGELES INVESTMENT ADVISORS FOUNDATION SYMPOSIUM
Thank you to the 29 foundations and endowments that participated in the Angeles Foundation Symposium.
Michael Rosen, Angeles CIO set the stage for discussion providing a historical comparison between global populism at the turn of the 19th century and the high levels of polarization today. The election was just another signal that we are entering a transition period from one world to another. The analysis of geopolitical affairs which used to be relegated to theorists has now become necessary for investors to consider and integrate into their investment process. Preceding the world wars unprecedented levels of wealth and prosperity were coupled with rising social unrest, growth of the labor unions, and an increase in social upheaval. Rise in populism today mirrors this period preceding WWI, the most devastating war the world had ever seen. This environment has in the past led to increased instability, volatility, uncertainty and violence. Paradoxically this type of environment is where the United States does relatively well. Michael uses fascinating data in presenting his thesis.
MAKING THE MOST OF A LOW RETURN ENVIRONMENT IN 2017 AND BEYOND
Foundations’ long term investment objective of preserving purchasing power after inflation and spending may be especially challenging in the coming decade. Our distinguished speakers, Lisa Mazzocco, Chief Investment Officer at University of Southern California and Joshua Friedman, Founding Partner and Co-CEO of Canyon Partners, LLC provided ideas on positioning an investment portfolio for the future. Joshua agreed with Michael’s assessment that ‘you have to do macro or macro will do you’ while conceding that at Canyon Partners they are micro-value oriented and prefer to prepare for the future rather than to predict certain outcomes. Discussing five pockets of industry with disruption Josh spoke about the wide dispersion of returns in healthcare, the disemboweled retail industry, the transforming energy business and the media sector for which the equation of content and distribution is rapidly changing. The home mortgage market, the fifth pocket of opportunity, has swung wildly in the past and could again change dramatically under the new administration. Lisa talked about USC’s strategy and staying ahead of opportunities. Her assiduous focus on GP relationships keeps her in close contact with high performing investment teams all over the world. The panel agreed that transparency, integrity and ethics are paramount for the formation of long term investing partnerships and in meeting a Foundation’s or Endowment’s long term objectives.
Foundating Partner, Co-Chairman and Co-CEO Canyon Partners, LLC
Joshua S. Friedman is Co-Founder, Co-Chairman, and Co-Chief Executive Officer of Canyon Partners, LLC. Mr. Friedman is a graduate of Harvard College (B.A., summa cum laude, Phi Beta Kappa, Physics), Oxford University (M.A., honors, Politics and Economics, Marshall Scholar), Harvard Law School (J.D., magna cum laude), and Harvard Business School (M.B.A., Baker Scholar). Prior to forming Canyon, Mr. Friedman was Director of Capital Markets for High Yield and Private Placements at Drexel Burnham Lambert. Prior to working at Drexel, he worked in the Mergers and Acquisitions Department of Goldman Sachs in New York. Mr. Friedman is also a director and trustee of a number of nonprofit and charitable organizations.
Chief Investment Officer University of Southern California
Lisa Mazzocco was named USC’s first chief investment officer effective April 18, 2011. Reporting directly to the president and working closely with the university’s chief financial officer and the investment committee of the USC Board of Trustees, Mazzocco is charged with building a staff that will bolster the investment function of USC’s endowment in support of the university’s academic aspirations. She also advises the investment and finance committees of the USC Board of Trustees with respect to endowment performance, and chairs the university’s retirement oversight committee. Mazzocco holds an MBA from California State Polytechnic University, Pomona, and a bachelor’s degree from San Diego State University.
Principal, Chief Investment Officer, Angeles Investment Advisors
Michael has 30 years of experience as an institutional portfolio manager, investment strategist, and investment consultant. For years Michael has been deeply committed to the independent school community having served as advisor, board member and parent of a diverse set of independent schools.
From 1997 to 2001, he was a partner at Asset Strategy Consulting and its successor. From 1993 to 1997, Michael was the director of investments for Blue Cross of California/WellPoint, Inc. Previous to 1993, he spent a total of 8 years as a bond and currency trader, and then as Chief Market Strategist with First Interstate Bank, Ltd. He started his career as a derivatives trader with Barclays Bank plc.
Michael was an Adjunct Professor of Finance at Pepperdine University from 1991-2000 and at Loyola Marymount University. He earned his Bachelor of Arts, magna cum laude, from Tufts University, and Master of Arts in Law and Diplomacy from The Fletcher School of Law and Diplomacy (Tufts/Harvard). He is the former Chairman of the Los Angeles Chamber Orchestra.
If you would like a copy of the presentation, please click here