How a Single Idea Guided a Firm's 25-Year Evolution
A freestone river begins with snowmelt high in the mountains, carving a path from walls of granite and stone that direct its journey to the ocean. Freestone rivers are undammed, untamed, and volatile. The river's path is determined by its ability to adapt to the obstacles it encounters, much like Freestone Capital Management's 25-year journey of guiding clients through the complexities of financial markets with resilience.
Founded in 1999, Freestone has grown to become one of the largest Registered Investment Advisors (RIAs) on the west coast, managing close to $11 billion and advising successful families in the markets it serves. The formula for continued success? Just ask Gary Furukawa, Freestone's Founder and Chief Investment Officer: clients come first.
A Seattle native, Furukawa got started as an investor by purchasing foreclosed homes in Seattle when he was 16 years old. Later, he was an angel investor in Avenue A and Amazon. Following several successful investment outcomes, he and four colleagues left the security of a large Wall Street firm to start Freestone with a singular idea: if they put clients at the center of their work, the rest would fall into place.
Freestone team in 2002.
Erik Morgan, Freestone’s President, with Gary Furukawa, the firm’s Founder and Chief Investment Officer.
At first, the founders didn't focus on business growth. But in 2000, the founders made two decisions that have shaped Freestone's evolution and identity: Furukawa hired Erik Morgan to lead growth initiatives, and Freestone launched its first alternative investment fund.
“I could see Gary's investment acumen, but more importantly, he wanted to build something special for clients,” said Erik Morgan. “A client can come to Freestone, and we strive to solve their problems across a broad spectrum of needs: estate work, tax, philanthropy, concierge, and, of course, investments. We have a team of more than 100 with focused specializations. We believe Freestone provides a differentiated opportunity for clients, and a big part of that is our alternative investments.”
While Freestone offers comprehensive wealth and asset management services, many people know of Freestone for its experience investing in alternatives. It's now common for RIAs to include these types of investments in client portfolios, noted Nick Cicero, who joined in 2004 and helped to architect Freestone's alternatives business. What differentiates Freestone is that currently almost all of the investing is done directly, rather than through a “fund of fund” model. Freestone has an in-house investment team evaluating and managing opportunities and deploying capital, whether it's manufactured housing, automatic car washes or barrels of Kentucky bourbon.
Freestone's private investments currently include 11 funds with over $2 billion in assets under management. Freestone continues to invest alongside the clients – the firm's partners are collectively the largest investor in the funds. "We started investing in alternatives in the wake of the dot-com bubble,” said Furukawa. “I like the asset class because it can provide uncorrelated returns during periods of stock market stress. And we believe we can better control outcomes for clients because we control the underlying investments. It's one of the things that makes Freestone unique.”
Aerial shot of a community in Freestone's Manufactured Housing Communities fund.
Freestone's management team. Front row (left to right): Aaron Sellsted, Jim Hughes, George Chang. Back row (left to right): Ann Gookin, Matt Tigert, Erik Morgan, Gary Furukawa, Jennifer Moreland
Also unique? A seasoned and fully developed leadership committee of industry veterans. Today, Freestone is run day-to-day by a team of seven leaders, most of whom have been at the firm a decade or more. The newest member of that committee is Jim Hughes, who joined in 2023 to lead Freestone's team of nearly 30 financial advisors.
“I've been in this industry for more than 30 years,” says Hughes, who previously founded an east coast RIA following a national career with Merrill Lynch. “As a fiduciary whose firm is 100% employee-owned, our only commitment is to client success, not those of a corporate parent. That is incredibly refreshing. It's also a big reason for Freestone's growth story.”
Freestone's presence on the west coast has grown alongside its assets under management. Freestone maintains headquarters in Seattle, but it has an expanding presence in the San Franciso Bay Area, with other offices in Santa Barbara, Silicon Valley, and Anchorage. Up and down the west coast, clients experience the Freestone way, which Hughes described as “the blend between sophisticated, personalized planning and a unique investment experience.”
Freestone Capital Management is an independent, fee-only wealth advisory and asset management firm that brings together superior client service and a comprehensive investment approach. Clients entrust Freestone to help them pursue their long-term financial goals. To learn how Freestone can help you focus on what truly matters, contact us or one of our Client Advisors directly.
Disclosures: Data as of 6/30/2024. This document is for discussion and informational purposes only and does not constitute an offer or solicitation of an offer, or any advice or recommendation, to purchase an interest in a fund, any securities or other financial instruments, and may not be construed as such. Nothing in this document is intended to provide, and you should not rely upon it for, accounting legal, tax or investment advice or recommendations. References to any strategies or funds are provided for illustrative purposes only. There can be no assurance that our investment, risk management or other objectives will be achieved or that any such investment program will be profitable or successful.