Recently overheard.....

"Remember, Edward Siedle said MISMANAGEMENT OF THE INVESTMENTS is the most important reason why pensions fail. He also said investments are steered to those that pay politicians the most. Those last two statements are why STRS has cut benefits and increased contributions."

The problem with hedge funds/private equity—legal, illegal and all the tweeners, is that they enable Ohio politicians to embezzle the STRS pension fund through campaign contributions. That is why the politicians want total control of STRS. They are not going to let a Steen or Fichtenbaum possibly dump alternatives for passive index investing. Remember, Edward Siedle said MISMANAGEMENT OF THE INVESTMENTS is the most important reason why pensions fail. He also said investments are steered to those that pay politicians the most. Those last two statements are why STRS has cut benefits and increased contributions.