Last week saw Strickland fire off a letter to editor of The Sun Herald defending the investments of the SRHS Retirement Committee. The Sun Herald is not alone in alleging that the committe made “poor and risky investments.” Those words originally came from Billy Guice.
Stickland points to the committee’s track record showing “annualized returns: one year — 9.9% ; three years — 13.9%; five years — 10.7% ; 10 years — 7.5 %.”
As a comparison we look at a broad market fund return and the S&P 500.
Strickland states his personal account didn’t see such returns. He might need to “talk to Chuck.”
The simple fact is that SRHS could have put the money in low cost mutual funds and would have seen superior performance. Instead, the investment committee hired myriad expensive, illiquid, and risky hedge funds only to underperform market returns.
Mr. Strickland was able to quote very specific numbers. That suggests he has retained documents from his time on the SRHS board and various committees. Hopefully he produces such documents upon his arrival at the deposition.