STRS Board Chair Rob McFee VASTLY understates STRS loss in Russian investments; Rudy Fichtenbaum, as always, gives us the TRUE figure, and it isn't pretty!!

From John Curry

March 17, 2022

Remember when OEA's Rob McFee said that our loss in Russian investments was in the neighborhood of $50 Million? Well....Rudy Fichtenbaum does. Rudy estimated that we lost around $144 Million in Russian investments. 

Today, at the STRS Board meeting we found out THE REAL TRUTH.....WE LOST OVER $200 Million in Russian investments!!!!!

Below is a Rudy Fichtenbaum post from March 5. Friends, our "best and brightest" just screwed us out of lots more money! 

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Rudy Fichtenbaum

To Rob McFee on FB

March 5, 2022

Rob McFee, prior to the Russian invasion of Ukraine, STRS had approximately $22 billion in international stock investments. Approximately 21% of these stock investments were in Emerging Markets and of that 4.3% was invested in Russia. That is approximately $194 million and now you are telling us that we have $50 million. I am just a retired Professor of Economics and have never taught mathematics but by my calculation that means STRS just lost $144 million. This loss is equal to approximately 7% of the contributions that active teachers make to STRS in a year. In the MSCI index for Emerging Markets Russia accounts for 3.6% and yet STRS had invested 4.3%, so we were significantly overweight. The bet on Russia was primarily being made by our own investment staff with internal investment accounting for 77.5% of the Russia investments. Speaking of investment decisions made by our staff,  you haven’t responded to my email on the Benchmark Scam. Since you have decided to venture into the Members Only Forum, perhaps you would like to respond here. I am sure that the Members would like to hear your response.