Frequently Asked Questions

Koko Asset Management is a money management company which focuses on holding a concentrated group of securities, mainly stocks. In essence, we are a stock picking or “security" or "business analysis” investment service.

The focus is on producing results over the long-term although such a long-wait may not necessarily be as long a case as suggested, given certain realities of the market. In fact, much of this “long-term” isn’t simply a reference to length of time, but rather the ability of fully availing oneself of favourable market conditions and opportunities presented in the stock market. 

It is important to be waiting with a purpose in mind and having that purpose be based on facts and actual realities of the markets, so one knows exactly why they are waiting. A complete answer to the question, “Why is investing long-term?” Is something the money manager at Koko hope’s to fully answer and provide you with facts that are useful in answering the question “why investing is a long-term process?”. 

You will certainly not be waiting simply because of blind-faith in the investment manager or whatever so-called “skill” they may or may not have, or because of some so-called “service” some investment funds appear to be providing.

Yes, there are minimum capital requirements for investing with Koko Asset Management, commensurate with the returns the investment manager feels he can produce on such sum in the future, based on his experience and market conditions.

The word “incentives” can be thought of as another word for "money" and merely refers to how the investment manager makes that money and whether good or bad behaviour is encouraged or discouraged towards managing your cash and investments. Even lesser amount of fees may overtime prove to be a major cut in your total investment profits. 

In other words, if an investment manager is getting paid a certain fees by their clients, it is a certainty, that such an incentive will impact the decisions they make when selecting stocks. Most such decisions may be skewed in ways that are perhaps more self-serving than it would be under incentives associated with other fee-structures. 

No, Koko does not sell any financial or investment products nor does it sell securities in the company or distribute anyone else’s. The investment manager simply manages client’s capital by picking stocks and all the fees are based on performance (see “Business” tab of the website for more information).

Such records and related materials are presented to give the potential client a complete picture of what performance has occurred in the past. Documents shown to verify past performance and related materials are taken from brokerage statements, investment account statements and other original source documents including official documents covering the relevant periods.

“Concentration” in investing refers to picking  significantly smaller number of securities than diversifying into a portfolio of numerous numbers of all kinds of different stocks. The reality underlying such an approach is the fact that the number of stocks that can produce good returns are far fewer in number than what a conventional diversification strategy calls for. 

The goal here is not to attack “diversification” but rather taking into consideration that opportunities are indeed scarce. While at the same time avoiding over-diversification to such an extent that it would make more sense, and be more profitable, to buy a low-cost S&P 500 Index. 

Seeking an excessive level of diversification in one’s portfolio doesn’t necessarily make it safer, and it certainly won’t provide significantly higher returns that you will be waiting a long time for.