IOC Passes on Bull Market, but That May Change

Run with the bulls? That hasn’t been the International Olympic Committee’s style.

The IOC, with millions in bonds and bank deposits, has mostly stayed on the sidelines as Wall Street and many other stock markets have roared through the greatest bull market in history.

IOC President Juan Antonio Samaranch, who has a background in banking, has long favored a conservative strategy. “In the stock market, you can win or you can lose,” he said. “Our policy is not to gamble with the money.”

But now the track record of a Los Angeles foundation headed by IOC Vice President Anita DeFrantz has prompted the IOC to reconsider that strategy.

The Amateur Athletic Foundation, or AAF, launched with $93 million in profit from the 1984 Los Angeles Games, has pushed its investment portfolio past $200 million while giving away $100 million to athletes.

Recent grants included $497,000 for sports programs at Los Angeles parks and schools, $150,000 for tennis clinics throughout Southern California and $45,022 for gymnastics equipment in East Los Angeles.

The foundation was able to do so well by playing the stock market, said Los Angeles lawyer and businessman John Argue, who for years led its investment committee. Over the long haul, Argue said, “The more you have in stocks, the better off you do.”

DeFrantz has been pressing the IOC to shift more of its money away from bank deposits and long-term bonds that offer safe but single-digit returns.

IOC officials said last week that they intend to increase stock investments held by their Olympic Foundation but did not specify by how much. “We have to push the return,” said Thierry Sprunger, the IOC’s controller.