Who’s afraid of the big, bad pensions deficit? Contrarian stock-pickers can find hidden value in companies with large holes in their defined benefit pension funds For some UK companies, having a large pension deficit is like a proverbial albatross around the neck – unsightly and foreboding. This can make the shares appear cheap on some measures. But valuing stocks with large schemes is difficult, due to the enhanced complexity of pension accounting. Actuaries and trustees make numerous assumptions regarding future [...]
