You and the Firm
Who do you work for?
My company (Bateman Capital Management, Inc., or “BCM”) is a registered investment advisory firm based in Kansas that is 100% owned and operated by me, Ken Bateman. I work for my clients and no one else.
What do you do?
My clients come to me with their funds, and based on their individual goals, I place the funds into investments that are appropriate for them. I take a holistic approach to determine what investments are correct for each clients’ account.
How do you evaluate a business and decide whether or not to invest in it?
Businesses are creations of people, and people are the most important thing in business. To evaluate a business, you must be able to assess people. Also, you must be able to evaluate financial reports, prospects of the business, and be willing to endure the fluctuations which are common in the markets.
I have spent years doing just that, from learning to evaluate people as a leader in the Army, to formal education with a B.S. in Economics, an MBA, and current work toward a Ph.D. in Business Management. I have owned two restaurants, which taught me the fundamentals of business management in a real-world environment. I have served as a Chief Financial Officer for a small private company, where I learned more about accounting and taxes than I ever learned in school. Using the combination of these experiences, I believe I can evaluate businesses correctly.
What do you do on a day-to-day basis?
Mostly, there is a lot of reading. I have been reading corporate filings for years. Finding an excellent investment can be quite hard.
It may take a year to find a new investment that fits my criteria. For the businesses I find that meet my criteria, I keep track of their performance over time via information filings.
How long do you hold investments?
I have a preference to hold investments for the very long-term. However, if the businesses outlook changes, its prospects diminish, or the security reaches a valuation in excess of what is logical, then it may be time to sell. Keeping on top of changes in the industry, and the company’s financial position over time is incredibly important. To be clear, investments are sold when facts change, not when the price goes down.
What is your performance over time?
Each account is dealt with separately, and as such, each has its own individual return.
Other than reading financial statements, how else are you involved?
Over time, I have engaged with management through phone calls, emails, letters, the voting of client proxies, as well as attending numerous annual meetings. Sometimes I am one of the few shareholders who shows up at the annual meeting, and I often ask questions and offer suggestions to the Board.
When are you available to see clients?
100% of the time. A phone call to me by a client is a #1 priority, and clients can feel free to call any time, day or night, to ask any question they may have. As a carry-over from my time in the Army, I am never truly “off duty.”
Separately Managed Accounts
Notice: This section is provided to address questions about how Bateman Capital Management, Inc. (“BCM”) operates its advisory business exclusively for separately managed accounts. Please note that this does not purport to be a full discussion and disclosure of important facts and conditions, which are detailed in Form ADV and the investment advisory contract.
What is a Separately Managed Account?
A “separately managed account” is your account, in which you designate discretionary trading authority to Bateman Capital Management, Inc. in exchange for a fee agreed upon in the advisory agreement (this is what “managed” means in the term “separately managed account”). The word “separately” needs to a bit of explanation as well; it simply means that the funds in your account are completely separated from those of other clients.
Who is the Custodian/Broker?
Currently, BCM uses Interactive Brokers LLC as its custodian for separately managed accounts. Interactive Brokers LLC is a third-party custodian and is not affiliated with BCM. New clients wishing to use the advisory services of BCM will generally be asked to establish an account at Interactive Brokers LLC. Positions clients hold at other firms can be transferred to Interactive Brokers LLC using a position transfer. For new clients who already have an account at Interactive Brokers LLC, an abbreviated process exists which we are happy to discuss in detail.
What types of accounts do you manage?
Interactive Brokers LLC has numerous accounts types, including Individual, Joint, Corporation, LLC, and IRAs. Please contact us to see if we can service your account type.
What is the minimum investment?
There is no official “minimum amount” investment requirement for BCM. However, BCM generally wishes to ensure that prospective clients are serious and have an appropriate mindset about investing over a long period.
Equity securities are fractional ownership of a business. Because the right to vote in director elections and other shareholder matters are intertwined with the concept of ownership, clients of BCM will sign a Special Power of Attorney allowing BCM to vote securities in their separately managed account. BCM takes this obligation seriously, and all decisions about voting are made at the sole discretion of BCM.
Interested in becoming a client of Bateman Capital Management?
Simply fill out the contact form or call me directly at 913-369-7016 and I’ll personally answer or return your call as soon as possible.