Montecito Investment Strategies

Montecito Investment Strategies provides discretionary portfolio management to individuals, high‑net‑worth clients, corporations, pension and profit‑sharing plans, trusts, charitable organizations and foundations. The firm manages roughly $11.7 million for a small client base and constructs portfolios using ETFs, mutual funds, equities, options, closed‑end funds, fixed‑income instruments and cash.

The firm offers two distinct strategies: Montecito Edge, a core‑satellite approach that typically holds a passive core (commonly SPY) with an actively managed satellite, and MIS One Percent, a highly active, tactically traded strategy. MIS combines fundamental and technical analysis — including proprietary technical indicators — and may use intraday trading, leveraged and inverse ETFs, ETNs, options and limited margin in the MIS One Percent strategy.

Montecito is notable among small, solo independent advisers for offering a performance‑based fee structure on its MIS One Percent strategy (calculated relative to a high‑water mark and charged quarterly) while also permitting non‑qualified clients to participate on a management‑fee‑only basis. The firm manages side‑by‑side accounts under different fee arrangements and addresses related conflicts through uniform block‑trading procedures and custodial practices, including requiring clients to use the firm’s recommended custodian and directly deducting advisory fees under the applicable custody exception.