About Greenside Capital Management
GCM is a Registered Investment Advisory firm based in Ft. Lauderdale, Florida. GCM was established for the purpose of providing top-tier investment management services to current and former military service members.
Investment Philosophy
Greenside Capital Management was established with the intention of providing top-tier investment management services to military members and their families. In today’s investment environment it is too easy to get sucked in to the noise of social media, the news, and friends and family who have somehow discovered the next “great idea” in the stock market. Unfortunately, by the time these ideas are promoted by the masses it is often too late and they are often massively overpriced due to the excitement generated by the aforementioned sources. Our aim is to provide a calculated approach for long-term investors by avoiding the noise and investing in undervalued companies that are well positioned for lasting capital appreciation.
“Your style of investing is so simple. Why doesn’t everyone just copy you?”
“Because nobody wants to get rich slowly.”
-Warren E. Buffett’s response to Jeff Bezos
Leadership
Peter M. Bates is the Managing Director and Chief Investment Officer of Greenside Capital Management. Peter has six years of formal experience in the investment management field working with some of the top money managers in the United States. His experience includes work as a Regional Consultant for Lord Abbett & Co. in Jersey City, NJ, and as a Vice President at Smead Capital Management.
Peter received his B.A. in economics from Denison University in Granville, Ohio, and his M.B.A. from The University of Virginia’s Darden School of Business. During his final year at Darden, Peter was selected as the Chief Investment Officer of the Darden Executive Fund managing a portfolio of publicly traded assets as part of Darden Capital Management.
Peter is a Captain in the United States Marine Corps with leadership experience as an Amphibious Assault Vehicle Platoon Commander and Company Executive Officer. He currently serves as a Marine Security Guard Officer overseeing the Marine units at United States Embassies in South America, The United Kingdom, Canada, and Ireland.
FINRA Broker Check: PETER MOSELEY BATES - BrokerCheck (finra.org)
The Intelligent Investor
The Intelligent Investor by legendary investor Benjamin Graham is still widely regarded as the best book on investing ever written despite the fact that it was first published in 1949. In the commentary on Chapter 10 Jason Zweig outlines a list of questions that every investor should ask before selecting an investment advisor. In the interest of transparency, those questions that relate to Greenside Capital Management are answered below:
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Why are you in this business?I started this business because I have loved the world of investing since I was gifted my first stock at age 15. I find the innerworkings of great companies to be fascinating, and the work required to be a great investor to be incredibly rewarding. I also love that the incentives in the investment business, if managed correctly, are properly aligned with those of the client.
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What is your investment philosophy? What types of asset classes do you use? Technical Analysis? Market Timing?I have developed my investment philosophy over many years by working with, and closely following some of the greatest investment minds of our time. I believe that success in investing means playing the long game by investing in quality companies with elite management teams that are positioned for long term success in market environments that, for one reason or another, view them as out of favor with the general investing population.
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Do you focus solely on investment management?I also oversee all management functions of Greenside Capital Management. My main focus within the company is investment management.
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How can you help me achieve my goals? How will you track and report my progress?I develop a customized plan for each investor based on their goals and financial needs. Progress is both tracked by me, and by Altruist, the company where client funds are held and invested.
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How do you choose investments? What investing approach do you believe to be most successful? What do you do when an investment performs poorly for an entire year?I choose investments in industries that are both out of favor and well-positioned for outperformance. Finding the next AMC or GameStop is not my game and often sets investors up for long-term underperformance. I prefer a concentrated basket of companies (10-20) in underappreciated industries that benefit from low debt levels and high cash flow. Poor investment performance for an entire year is often not indicative of a bad company, just low levels of excitement in the market. Outperformance over 5, 10, 20 years (or a lifetime) is the goal.
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Do you, when recommending investments, accept any form of compensation from a third party? How much in actual dollars do you estimate I would pay for your services during the first year?I do not accept any form of compensation from a third party, and do not plan to in the future. I pay three other companies for brokerage services (the ability to hold client money, and invest it using their platform), compliance, and bookkeeping. The annual cost is 1.2% so $120 a year for $10,000 invested, $1,200 a year for $100,000 invested etc.
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What determines whether a client will speak with you or support staff?Clients will always speak with me.
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How would you define financial success?Having the financial means to do what you want to do when you want to do it, and putting your family in a position to do the same.
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How high an average annual return do you think is feasible on my investments?The goal for each client will vary based on risk tolerance. The goal for myself as a moderate-aggressive investor is to return 3-5% higher than the S&P 500.
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Have you every had a formal complaint filed against you? Why did the last client who fired you do so?I have never had a formal complaint filed against me. This business is in its infancy so I have had no clients fire me. I do think this is an important question so I will attempt to answer it as a hypothetical. A client will likely fire me during periods of extreme market excitement when their friends and family are bragging about their investments in that one idea that “skyrocketed overnight.” Technology stocks in 2001 and bitcoin & meme stocks in 2021 are perfect examples of extreme excitement. It is often very difficult to stick to an investment strategy rooted in fundamental analysis when stories about bitcoin millionaires are being published everyday.