I’m a lot less worried about corporate pensions than private-sector ones. Corporate pensions are better-funded than they used to be, and some airlines have issued bonds just to top up pensions, which means that the pension cost has to be part of your FCF model.

That CalPERS story is incredible. Flawless timing!

(Not sure if you read the newsletter, but the day before the Universa story hit, I wrote about how the problem with tail risk funds is that everyone wants to invest when tail risk is expensive, and they slowly bleed AUM the rest of the time. There’s a neat Covid-19 example, too: there was a KBCP venture fund that invested exclusively in pandemic defense — but it launched in 2006, so it would have reached the end of its life in 2016, and there wasn’t a follow-up. The ten-year life of venture is incompatible with once-a-century risks.