Ali Hasan’s knowledge of finance is challenged

Ali Hasan, a candidate for the Colorado Republicans’ nomination for state Treasurer, says he’s qualified to managed some $6.3 billion in state funds because he has run his small business. A couple of anonymous posters who claim expertise in finance beg to differ, and Hasan not only takes them on but also stands his ground and earns their respect for his graciousness, if not his financial expertise.

Maybe he should 

spend a few days interviewing investment advisers, portfolio managers and financial scholars about how the markets the state invests in work and about what he would need to know to serve as Treasurer.

My experience is that even though I have an MBA in finance and once wrote a daily column on the money markets, you really don’t learn to manage money until you really do it. And then the tuition can be expensive, which is OK if you’re running your own money but not if you’re running the state’s portfolios. The Treasurer employs investment managers, and what Hasan is saying is that he is qualified to manage them. That’s a decision voters will make.

Hasan’s primary opponents are Walker Stapleton, a Harvard MBA and experienced real estate investor, and J. J. Ament, a financial adviser whose clients have included the incumbent Treasurer Cary Kennedy. Of course, Kennedy, a Democrat, is the only one of the four candidates running for Treasurer who has had the experience of managing the state’s five portfolios. Whether she’s doing a good job is what the election is all about.

Roy Romer, Bill Owens and Mike Coffman are all former Treasurers, and none of them knew any more about the markets than Hasan does when they were elected. They all went on to higher offices. Odds are pretty good that all of the candidates for Treasurer this year are hoping to use the office as a stepping stone to bigger and better things, just as the former treasurers did.

Link:

Interview: Ali Hasan says that as state Treasurer, he’d invest in more Colorado-based companies. The Business Word, 1.17.2010.

1. Don - with all due respect, I disagree with the sentiments above, particularly, “Maybe he should spend a few days interviewing investment advisers…” etc.

   I’m very proud that I sought advice from Mark Hillman, Mike Coffman, and a former Deputy Treasurer before seeking such a major office, in doing my best to understand the complexities of it.

   The blog you’ve referenced accused me of wanting to invest in “junk bonds” when that claim could not even be substantiated - I have a vision to invest in Colorado companies and/or companies creating jobs in Colorado, and in coordination with our State Laws, I would only invest with those companies whose securities and bonds meet our investment requirements, which is primarily investing in securities that meet a AA-rating or higher.

   Regarding State Treasurer candidates that do not understand the office, I will submit the following -

   Posted by Ali Hasan  on  01/31  at  03:41 AM

2. 1. JJ AMENT -

   In the November 9th, 2009 issue of the Fort Morgan Times, JJ Ament is attributed as, “Ament said he’s taken ideas to Kennedy, but she has not listened and does not seem to understand public finance. For instance, Colorado tends to borrow up to $1 billion a year for cash flow, always losing money.”

   What JJ Ament doesn’t understand is that CRS 22.54.110 and CRS 29.15.112 require the State Treasury to borrow money every year, on behalf of school districts. For Ament to assume that such problems can be solved with modern banking, displays his lack of knowledge of the office.

   Posted by Ali Hasan  on  01/31  at  03:43 AM

3. 2. WALKER STAPLETON -

   On Stapleton’s campaign website, he claims “At best, PERA’s future is questionable. And the risk extends beyond government workers to every taxpayer in the state, since any unfunded liability in state pension funds will ultimately have to be borne by a Colorado-taxpayer-funded bailout.”

   What Stapleton doesn’t understand is that Colorado’s Constitution and CRS do not require a taxpayer funded bailout of PERA to be triggered, in the case of insolvency. In addition, there are no references to such a policy in the Old Age Pension Fund Article of the Constitution.

   Posted by Ali Hasan  on  01/31  at  03:45 AM

4. 3. CARY KENNEDY -

   On her candidate website, Kennedy states that she rejected “risky proposals to invest taxpayer dollars in the stock market.” What Kennedy doesn’t realize is that Treasury Investment Policies do not allow for investment in the stock market.

   For Kennedy to even entertain such proposals shows a lack of understanding within the office.

   CONCLUSION -

   Don - I would submit to you that I am the candidate with the finest understanding of the office.

   I have a history of managing my own portfolios and I’ve carved a vision for how I want to handle the State Treasury. I believe the best evidence for my qualification is my State Treasury Plan, which can be downloaded at my website -

   http://www.Hasan2010.com

   Peace and love - Ali Hasan

   Posted by Ali Hasan  on  01/31  at  03:47 AM

5. Thanks for elaborating and responding, Ali. I think it speaks well of you that your are engaging in the online conversations about your candidacy.

   Don

   Posted by Donald Johnson  on  01/31  at  07:26 AM

6. No worries! Thank you for publishing a great blog Don!

   Posted by Ali Hasan  on  01/31  at  10:36 PM

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