UK pensions and path dependence

Letter # 101 | 4 Oct 2022 |

The $4 trillion UK pensions are in a spot of bother after the UK mini-budget. By now, you have probably read a lot about it. But it might surprise the reader that it isn’t “leverage” that is responsible for the mess, as much as the “path dependence” is. In today’s ET article, we lay down the genesis of the problem in very simple language, and derive learnings for us as equity investors. Read here: https://tinyurl.com/2wfv53y4

Read the previous 100 articles here: https://www.buoyantcap.com/memos/

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies is provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.