Overview
A. Firm Information
1271787 LLC (the “Company”) is organized as a limited liability company (LLC) under the
laws of the State of Delaware. The Company was founded in 2021 and is owned and operated by
Adam King and Andrew D. Barber.
B. Advisory Services Offered—Individual Managed Accounts
1271787 LLC provides customized investment advisory solutions for institutional clients based
on the core investment philosophy described below in this Item. We work with our clients to identify
their investment goals and objectives as well as risk tolerance and financial situation in order to
determine if the client’s objectives align with the portfolio management strategies we offer. We then
construct a portfolio, consistent with their investment philosophy.
The Company will provide investment advisory services and portfolio management services. At
no time will we accept or maintain custody of a client’s funds or securities. All client assets will be with
a qualified custodian pursuant to a client investment advisory agreement.
Investment Strategy
1271787 LLC is an allocation research and advisory firm focused on capturing absolute returns
across the full spectrum of liquid asset classes.
We work to understand the forces driving the financial markets, guided by a disciplined
analytical process and core beliefs acquired through real world experience. We believe that in order to
consistently outperform, it is necessary to recognize paradigm shifts and to apply the right tools to the
prevailing market environment. While we strive for absolute performance, we also know that no magic
formulas exist. Markets change, and so must any successful investment philosophy.
Although we are often contrarian in our views, we recognize that mis-pricings exist and may
persist for extended periods of time; market participants can and do make irrational decisions. We
respect the power that sentiment and money flows have over markets, which expresses itself through
the tactical elements of price action and market structure.
We also know that superior investment performance is not achievable without accepting risk;
risk is an ever-present companion of opportunity. Our first and most important mandate is always risk
management—our job is to assume the correct risks at the correct time, and to manage those risks
appropriately.
Finally, we believe that objectivity and humility are a necessary part of any effective investment
process. Though much is known and quantified, successful investors must always work on the edge of
what is knowable. Intellectual flexibility combined with continuous risk management discipline is
essential to long-term success. What we do is straightforward: We work hard every day to face risk
objectively, and to seize opportunity when it appears.
Investment Research
Our research blends four primary disciplines: quantitative analysis, macroeconomic analysis,
fundamental analysis and derivatives acumen.
Quantitative Analysis
Our quantitative research represents a fusion of the best elements of statistically-driven pattern
analysis,
behavioral finance, and a relative value approach that seeks to understand the allocation
decisions of large market participants. Our research process covers an array of markets and
environments. We seek to understand that markets exist in varying regimes; the tools that are useful in
one paradigm may be exactly the wrong tools to apply in another. Our tactical/quantitative process
represents a significant departure from traditional technical analysis: it incorporates a statistical
approach with a regime shift model and an element of human discretion, all under the aegis of a
disciplined risk management system.
Macroeconomic Analysis
Our macroeconomic analysis process focuses on discovering inflections that may represent
developing shifts in long-term trends; this work is an invaluable input in an investment process that
seeks to understand market action from many perspectives. We do not believe that economic analysis
can be used to predict market movements successfully over shorter time frames, and focus instead on
the impact of money flows and behavioral psychology as a risk management tool.
Fundamental Analysis
We employ a top-down fundamental approach across full market segments; whether focused on
a portion of the industrial commodity complex, a specific equity sector or a relative value spread in the
bond market our approach remains the same: we focus on the known fundamental factors to aid our risk
perspective, allow tactical considerations to dictate timing and risk management decisions.
Derivatives
Our team brings real world experience managing risk across multiple asset-classes, strategies,
and time frames. Our expertise in portfolio structure, quantitative, fundamental and macroeconomic
analysis is designed to assist us in understanding how derivatives can and should be deployed inside the
context of an overall portfolio process.
C. Client Account Management
Prior to engaging our Company to provide investment advisory services, a client is required to
enter into an investment advisory agreement that defines the terms, conditions, authority and
responsibilities of 1271787 LLC and the client. These services may include:
Establishing an Investment Policy Statement – In conjunction with the client, we generally
develop a statement that summarizes the client’s investment goals and objectives along with the
broad strategy[ies] to be employed to meet the objectives.
Portfolio Construction – We develop a portfolio for the client that is intended to meet the stated
goals and objectives of the client.
Investment Management and Supervision – We provide investment management and ongoing
oversight of the client’s portfolio and overall account.
D. Wrap Fee Programs
We do not manage or place client assets into a wrap fee program.
E. Assets Under Management
As of December 31, 2022, 1271787 LLC served as the sole sub-advisere to a single institutional
account. Its discretionary assets under management were approximately $200 million. We has no non-
discretionary assets under management.