Mercer Island Capital Management, LLC

Mercer Island Capital Management, LLC is a state-registered investment adviser that provides discretionary portfolio management through Separately Managed Accounts (SMAs), financial planning, and occasional educational seminars for individuals, high‑net‑worth clients, trusts, retirement plan accounts, and nonprofit entities. The firm discloses approximately $20.9 million in discretionary assets under management and governs client relationships through written advisory agreements with quarterly reporting and billing.

The firm’s investment approach emphasizes asset allocation and Modern Portfolio Theory combined with fundamental and quantitative stock‑selection techniques, and it supplements in‑house capabilities by selecting outside money managers for certain SMA strategies. Mercer Island Capital Management may use derivatives and other instruments within SMA mandates — including covered‑call income strategies and protective puts — and can authorize margin in client accounts where appropriate to implement its tactical and risk‑management objectives.

Several operational and compliance features distinguish the firm from many peers: the principal is separately licensed to sell insurance and devotes a meaningful portion of time to insurance activities, the firm has an affiliated administrative services company that provides bookkeeping and IT support under contractual safeguards (including a trading‑hours wall and separate credentialing for dual‑role staff), and a part‑time adviser performs non‑advisory bookkeeping duties subject to strict isolation. The firm also maintains a formal AI governance program with human oversight and holds a $70,000 surety bond to satisfy state bonding requirements after reporting a GAAP negative net worth, disclosures that reflect an atypical compliance and operational profile.