In business since 1999, Freestone Capital Management, LLC oversees billions in client assets. This fee-only wealth manager is based in Seattle and has two offices in California (San Francisco and Santa Barbara). It currently ranks on SmartAsset’s lists of the top financial advisors in Seattle and top financial advisors in Washington State.
In addition to a full suite of financial planning services, Freestone Capital offers both traditional and alternative asset management. The bulk of its clients are high-net-worth individuals and families. It also serves less wealthy individuals, pooled investment vehicles, pension and profit-sharing plans, charitable organizations and corporations.
Freestone Capital Management Background
As company lore has it, Gary Furukawa founded Freestone Capital Management with profits from being an early Amazon investor. A fly fisherman, he took the name of a kind of river that is good for his sport, a freestone river, for the firm. The idea was that just as rocks are free to roll downriver, so too would information be free to flow at the firm.
Furukawa and his wife, Della, own more than a quarter of the firm through entities they control. He manages the firm as senior partner, along with Erik Morgan, a senior partner who owns a small stake as well.
Freestone Capital Management Client Types and Minimum Account Sizes
Freestone Capital Management primarily works with high-net-worth individuals and families. It also serves people who are less wealthy, plus retirement plans, financial institutions, trusts, endowments, charitable organizations and businesses. Also, in its capacity as an investment manager to its private funds, the firm technically counts these private funds as clients.
Freestone Capital does not set minimum account sizes, though it says it seeks clients who can invest at least $1 million in discretionary assets, or $500,000 if they were referred through the Schwab Advisor Network service.
Services Offered by Freestone Capital Management
Freestone Capital Management provides investment advisory services on either a discretionary or non-discretionary basis, including access to its private funds. It also offers:
- General financial planning
- Tax planning
- Estate and trust planning
- Insurance planning, including life and disability
- College planning
Freestone Capital Management Investing Philosophy
The specific investment strategies of Freestone Capital Management’s private funds are outlined in each fund’s detailing documents. With client portfolios, the firm generally seeks to help clients “stay wealthy” by keeping “a proper balance of risk and reward.” It typically takes long-term positions, but may also use short-term purchases, trading, concentrated positions, short sales and other techniques.
Advisors at this firm will recommend a combination of the following investing strategies:
- Domestic & global equity portfolios: This utilizes both internally managed and externally managed equity models.
- Domestic & global fixed-income portfolios: This focuses on internally managed and externally managed fixed-income models.
- Alternative investment portfolios: This includes an internally managed model of “liquid alternative” mutual funds and the firm's private funds.
On a case-by-case basis, the firm may create customized solutions for clients. These will be based on the client's specific risk tolerance, time horizon, investment goals and more.
Fees Under Freestone Capital Management
Freestone Capital Management’s annual management fees vary depending on the client. However. they will not exceed 1.50% of the client's assets under management (AUM) annually. The minimum annual fee at the firm is $4,000 for Charles Schwab-referred clients and $6,000 for everyone else.
The annual management fee for its private funds is generally 1%, plus a performance-based fee. Also, many private funds carry an additional asset-based fee of 0.10%.
Freestone Capital Management Awards and Recognition
Each year from 2018 to 2021, Barron’s named Freestone Capital Management's senior partner Erik Morgan as the No. 1 advisor in Washington State. Barron's also ranked him No. 12 on its 2019 list of Top 100 Independent Financial Advisors in the U.S. In addition, eight advisors at the firm received a Five Star Professional Wealth Management Award for 2021.
What to Watch Out For
Freestone Capital Management has no legal or regulatory disclosures to report in its most recent SEC filings.
Opening an Account With Freestone Capital Management
To contact Freestone Capital Management about becoming a client, call (206) 707-7300. You can also visit the firm's office nearest you, or fill out the contact form on its website.
All information is accurate as of the writing of this article.
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