Sometimes we are inspired by a tweet, or an article, or a tweet about an article. The good folks at Farnum Street (Jeff Annello via @mungerisms) brought a New York Times op-ed about networking to our attention with some sharp commentary that really resonated with an important extension of our business.

At North Forty Two & Co., we have a robust, vibrant investment management practice, and we are passionate about providing high-caliber discretionary advisory services and actionable financial planning guidance to an intentionally limited number of households.

To use the word of the summer out here in Oregon, that isn’t the totality of what we do.

In the course of our interactions with clients, colleagues, and friends, we have the privilege to spend meaningful time with people who are really smart and really interesting. They make us smarter; we can ask questions about industries and technologies, and those learnings often help inform investment decisions. We strive to get smarter, to be better at what we do, every day.

But that intellectual curiosity isn’t the only reason we like to get out of the office to meet new people.

North Forty Two is a social nexus. Our clients and ambassadors share an entrepreneurial streak – they have often had a business success or two and are looking for the next adventure in life (perhaps this says more about our station in life).

We like to connect these people. We like to get trusted friends – business owners, senior executives, consultants, developers, financiers, etc. – together to explore business ideas, to vet investment opportunities, and to benefit from knowing one another. To collaborate as a virtual board of directors, to provide valuable, honest feedback and access to resources or knowledge that might not be available to a less connected network.

For us, that is really fun. And meeting and learning from interesting people has inherent, enduring value.

Dear client,

I hope this letter finds you well. As we close in on mid-year, I wanted to share with you several exciting pieces of news.

As you know, I started this business in 1998 with no clients and a dream. I wanted to leverage my knowledge and passion for investing into a one-stop shop for investment and financial advice. One that had all the intelligence of a larger firm yet maintained the integrity of an intimate relationship based upon trust. I wanted to do so in a culture of unparalleled honesty and transparency, always keeping my clients’ best interests at the forefront. I chose, at that time, to methodically build my business one client at a time, working only with individuals and families who could truly benefit from my services and with whom I enjoyed working.

Over the past nearly twenty years, we have grown and the world around us has changed in so many ways, with a more connected global community and intertwined capital markets, supported through new and important technologies, creating great opportunities and presenting new challenges. In my view, our firm needs to continue to evolve to enhance our legacy as a trusted fiduciary, and the time is right to invest back into the business.

To that end, I have decided to invite Whitney Dow to join the firm to help run and grow the business in ways that will enable us to provide even better support for our clients and their investment portfolios.

Whitney is also a native New Englander who has spent the last twenty years in financial services. He too started out on the desk of a Boston-based mutual fund company, spending time in investment consulting and research, ultimately landing in senior executive roles orchestrating the business development strategy for a pair of West Coast-based investment managers, including Russell Investments. His knowledge will help us make better investment decisions, implement more robust procedures, improve client communications, and help shape the direction and trajectory of the firm as we enter our third decade.

Whitney will assume the role of President and I will retain my responsibilities as Chief Investment Officer and your primary client contact, while reducing my role in the administration of the firm. He will be a valuable asset on the investment side in sourcing investment ideas, helping to size exposures, and in sharing his insights on the capital markets. I am very excited to have Whitney on board as I will have the luxury to focus the entirety of my attention on the financial markets, the global macroeconomic outlook, the investment portfolios, and you!

Whitney and I have conducted a comprehensive review of all aspects of the firm, including a diligent effort to refresh how we communicate the core values of the business and to rebrand the firm. Beginning on July 1st, we will re-launch under our new name, North Forty Two & Co., and on the web at northfortytwo.com. I look forward to sharing the genesis of the name with you.
 

The timing of this relaunch could not be better – one of the important reasons for making this change is highlighted by what we have endured these last six months. The year began with elevated market volatility and global uncertainty right out of the gate, and since then it feels like I have been navigating through some of the most complex and confusing market environments that I have seen in my career. One of my current fears is that global monetary policy is creating asset bubbles in sectors in which underserved investors are over-allocated and the risk profile for many investors is far more aggressive than they realize. That being said, we have chosen to gradually pivot our portfolios to more defensive positions in response. These markets demand even more of our attention to ensure prudent risk-taking while maintaining a keen eye on wealth preservation.

While a sharpened focus on the investment research piece of the puzzle will pay dividends in these difficult markets, bringing on these valuable resources also enables me to spend even more time with clients and portfolios, and frees up capacity to service additional clients. To this end, I would respectfully request your assistance.

We are seeking more clients like you – intellectually curious, discerning, successful individuals and families – who would benefit from a true investment fiduciary to help guide them as they pursue their passions and provide for future generations.

As you hear of friends, family and colleagues either dissatisfied with their current relationship with their financial advisor or stockbroker – likely due to high fees and/or conflicts of interest – consider mentioning our services and our unique approach. Perhaps there are acquaintances whose needs aren’t being met that might be a great fit for a relationship with us. We would be more than happy to provide a second opinion on a portfolio or on a challenging life event like retirement, wealth transfer, education financing, or job change.

Finally, implementing these needed enhancements to my business has been somewhat of a life event for me. The decision to move away from a solo practice and bring in a second voice, and to refresh the firm for a more modern age, was contemplated during a lengthy period of reflection which culminated with a Spring Break road trip in March to Palm Springs. Thirty-two hours in a confined space with my growing family – Ellery (17), Liam (13), and Xander (11) – gave me ample opportunity to look out the window and chart the future direction of the firm. It became clear that just as Krista and I tend to the maturing needs of a family flying through adolescence, it is necessary to evolve my adolescent business to better serve my clients over the next twenty years. This is likely to be an ever-changing economic and investing climate, and we stand ready to navigate it with you.

I thank you – investing your money and helping you shape your future is a privilege, reflecting the trust you have in me. We undertake this responsibility with great humility and the seriousness it deserves.

Your faithful steward,
Will Ross
Chief Investment Officer
North Forty Two & Co.