With the OK-Score ™, an instrument in use for fundamental analysis, it will be possible to create wealth products that possess unique characteristics.
The consequence in using this highly innovative rating instrument for wealth products cannot only be measured against other similar products; even on a world-wide scale it will conquer towards a new sparkling position.
We endeavour to score that success together with professional and reliable partners.
Many well guided and outperforming funds and investment products already exist in the world. The substance of the matter is that the OK-way of stock picking will always show an out-performance against the whole universe from which it was taken. The universe as such, can be ANY index like the AEX, S&P 100 or even the selection within an investment fund.
How is this possible ?
The OK-Score wipes out any existing rating instrument, such as S&P, Moody’s and even KMV by its natural power. It was originally developed (during a PhD-program at the University of Amsterdam) to predict bankruptcies and fraud. Already in 1999 - based on the annual figures of 1998 Mr. Willem D. Okkerse was able to predict the bankruptcy of Enron (2001). Within the annual data of 2000 a deficit of $ 2,5 billion was determined by the model. In the same way Parmalat was predicted and during February 2002 he surprised the world in explaining on Dutch TV the problems of Ahold, which - by the way - was ONE YEAR BEFORE the problems went public. All relevant publications and video’s can be found on the OK-Score’s Dutch website www.ok-score.nl.
In order to give some guidance : The OK-Score runs from OK-Class 1 (upperclass) till OK-Class 10 (In distress - bankruptcy can be anticipated if no direct action is undertaken).
From experiences it also can be stated that the summit of the predictive power of the OK-Score is 18-24 months.
You will understand that this rating instrument offers the whole gamut of possibilities in using its quality in diagnosis and power to identify the hidden defects. In recent years the OK-Score has been utilised in the following ways:
‒ As monitoring instrument for private equity or individual companies;
‒ As early warning system for the financial vitality of a company;
‒ As extra guide in judging expansion ideas, continuity, MBO’s and MBI’s;
‒ For managed accounts in stocks. Right now, the Association has agreements with Todays Beheer in Amsterdam concerning the AEX; (The Eurostoxx 50 is under construction)
‒ As research model in Brussels for fraud and launder malpractices.
In stipulating the essence to you:
With the OK-Score the paradigm of investments insights is shifted.
In stock picking, a very familiar way of investments, the OK-Scores will vigorously enhance your choices. Until now, it is common knowledge that spreading your investments over more stocks will decrease your risks. In the same way stock picking from an index therefor would increase your risks.
However, this issue has been refuted completely by the OK-Score of enhanced indexing. For the first time in history it has been proved that a significant lower risk-profile can be determined with fewer stocks than all the stocks of the whole index. The Beta is 0.61 against (of course) the index of 1.00. The R2 - by the way - is 0,65.
And not only a lower risk-profile but also a significant higher upwards potential. For references see also Professor Harry M. Markowitz. We ascertained that the risks are in the proportion of -15.14 for AEX and only -6.28 for the OK-Score. The up-side potential reads 8.03% for the AEX and 13,50% for the OK-Score selection.
It is obvious that both phenomena must lead to a higher Alpha (α). Measuring this Alpha from December 8, 1999 it now 10,3% (WITHOUT DIVIDEND). The total return - without dividend - is more than 130% whereas the index lingered on zero.
We are convinced that we have not exaggerated in using the OK-Score it is enabling you to define and to develop NEW, UNIQUE wealth products; the low risk profile together with the higher up-size potential makes the OK-enhanced stock picking world’s most innovating instrument in 2007.
Kindest regards
Willem D. Okkerse MBA
Inventor OK-Score
Member of the Institute of Forensic Auditors
okkerse@ok-score.nl
www.ok-score.nl
www.ok-score.blogspot.com
The consequence in using this highly innovative rating instrument for wealth products cannot only be measured against other similar products; even on a world-wide scale it will conquer towards a new sparkling position.
We endeavour to score that success together with professional and reliable partners.
Many well guided and outperforming funds and investment products already exist in the world. The substance of the matter is that the OK-way of stock picking will always show an out-performance against the whole universe from which it was taken. The universe as such, can be ANY index like the AEX, S&P 100 or even the selection within an investment fund.
How is this possible ?
The OK-Score wipes out any existing rating instrument, such as S&P, Moody’s and even KMV by its natural power. It was originally developed (during a PhD-program at the University of Amsterdam) to predict bankruptcies and fraud. Already in 1999 - based on the annual figures of 1998 Mr. Willem D. Okkerse was able to predict the bankruptcy of Enron (2001). Within the annual data of 2000 a deficit of $ 2,5 billion was determined by the model. In the same way Parmalat was predicted and during February 2002 he surprised the world in explaining on Dutch TV the problems of Ahold, which - by the way - was ONE YEAR BEFORE the problems went public. All relevant publications and video’s can be found on the OK-Score’s Dutch website www.ok-score.nl.
In order to give some guidance : The OK-Score runs from OK-Class 1 (upperclass) till OK-Class 10 (In distress - bankruptcy can be anticipated if no direct action is undertaken).
From experiences it also can be stated that the summit of the predictive power of the OK-Score is 18-24 months.
You will understand that this rating instrument offers the whole gamut of possibilities in using its quality in diagnosis and power to identify the hidden defects. In recent years the OK-Score has been utilised in the following ways:
‒ As monitoring instrument for private equity or individual companies;
‒ As early warning system for the financial vitality of a company;
‒ As extra guide in judging expansion ideas, continuity, MBO’s and MBI’s;
‒ For managed accounts in stocks. Right now, the Association has agreements with Todays Beheer in Amsterdam concerning the AEX; (The Eurostoxx 50 is under construction)
‒ As research model in Brussels for fraud and launder malpractices.
In stipulating the essence to you:
With the OK-Score the paradigm of investments insights is shifted.
In stock picking, a very familiar way of investments, the OK-Scores will vigorously enhance your choices. Until now, it is common knowledge that spreading your investments over more stocks will decrease your risks. In the same way stock picking from an index therefor would increase your risks.
However, this issue has been refuted completely by the OK-Score of enhanced indexing. For the first time in history it has been proved that a significant lower risk-profile can be determined with fewer stocks than all the stocks of the whole index. The Beta is 0.61 against (of course) the index of 1.00. The R2 - by the way - is 0,65.
And not only a lower risk-profile but also a significant higher upwards potential. For references see also Professor Harry M. Markowitz. We ascertained that the risks are in the proportion of -15.14 for AEX and only -6.28 for the OK-Score. The up-side potential reads 8.03% for the AEX and 13,50% for the OK-Score selection.
It is obvious that both phenomena must lead to a higher Alpha (α). Measuring this Alpha from December 8, 1999 it now 10,3% (WITHOUT DIVIDEND). The total return - without dividend - is more than 130% whereas the index lingered on zero.
We are convinced that we have not exaggerated in using the OK-Score it is enabling you to define and to develop NEW, UNIQUE wealth products; the low risk profile together with the higher up-size potential makes the OK-enhanced stock picking world’s most innovating instrument in 2007.
Kindest regards
Willem D. Okkerse MBA
Inventor OK-Score
Member of the Institute of Forensic Auditors
okkerse@ok-score.nl
www.ok-score.nl
www.ok-score.blogspot.com
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