Hedge Fund Chooses NAV to Deliver Institutional Caliber Service to Investors
Client
Gaines Capital
Background
Andrew Abbott and James Ziemba spent the early years of their careers as engineers working in the oil and gas industry. As their paths continued to cross, they discovered they shared similar values, career goals, and interests. Leaving their engineering roles behind, they teamed up to launch Gaines Capital in 2020. After launching Lorenz Fund, a multi-strategy hedge fund targeting low correlation and positive skew, they worked with their original administrator for two years before being informed that the firm planned to scratch their existing contract and raise their monthly fees by 82%. This motivated the two partners to search for a new administrator, with a primary focus on competitive fees, high-quality service, and leverageable technology.
“There was never an egregious error with our original provider,” Abbot said, “but it became apparent that they were not an institutional caliber service provider. It was a great fit for getting our fund off the ground, but we wanted our investors to have a higher standard of service,” he explained. “We wanted a portal where they could review statements and timely service with quick responses to questions. Overall, as a business owner, we want to partner with firms dedicated to quality and service and NAV has demonstrated that to us.”
How NAV Helped
Competitive Fees
Challenge
Stable, predictable fees are a must for the Gaines Capital bottom line.
Solution
NAV provides transparent, all-inclusive pricing with no hidden fees or periodic renegotiation.
Outcome
Abbott and Ziemba worked with their original administrator for two years before learning that the firm intended to increase their fees by more than 80%. Unhappy with the proposal, they began to research their options and discovered NAV’s cost-effective pricing and policies. Abbott shared, “From the beginning, we thought NAV looked like a great firm. The fees quoted to us were completely transparent from the start, whereas we felt other firms unfortunately had a ‘nickel-and-dime’ approach.”
Prompt Service and Response
Challenge
Premium client service is a key differentiator.
Solution
Clients who work with NAV are assigned a dedicated team.
Outcome
Abbot shared that a frustration with their previous administrator had been mediocre support. “Unfortunately, there were some times when investors were left waiting for a response for two days from their overseas support staff. That was unacceptable as we are a firm dedicated to the highest quality of service to our clients,” he said. “NAV’s team provides institutional caliber service, including quick responses and short data delivery times.”
3-in-1 Service
Challenge
Gaines needed multiple services, but did not want multiple service providers.
Solution
NAV provides Gaines with fund administration, financial statement preparation, and tax services all in one.
Outcome
Working with one dedicated service provider and integrated system to handle multiple tasks streamlines the experience for Gaines and their investors, while also offering operational efficiency and the freedom for the in-house team to stay focused on strategic priorities.
Regulatory Requirements
Challenge
Knowledgeable support to help comply with regulatory requirements was not optional.
Solution
NAV’s experienced team proactively tracks regulatory changes to ensure new and amended regulations are implemented on a timely basis to support timely compliance.
Outcome
Investor statements from NAV include fund number summaries and fund manager signatures, per NFA guidelines. “Other firms didn’t seem fully versed in certain NFA rules or specific items we needed to legally disclose for the fund to be in compliance and they were hesitant to include those details in our contract. With NAV it was easy, simple, and streamlined,” Abbott said.
GP Accounting
Challenge
Lack of adequate in-house accounting support led to logjams and resource overload.
Solution
NAV provides support for management company accounting.
Outcome
The Gaines team is appreciative of NAV’s GP/ManCo accounting assistance. With a range of available services including bank statement reconciliations; backup of all GP/manager invoices, payments, credit card statements, and cash balances; and year-end support to the fund tax accountant, NAV provides critical support to help reduce delivery timeframes and in-house administrative responsibilities.
Hassle-Free Transition
Challenge
The process of switching to a new administrator could have a negative impact on fund operations.
Solution
NAV’s team facilitated a smooth transition from Gaines’ previous firm.
Outcome
“Transitioning to NAV was seamless,” Abbot said. “Our monthly statements were completed and distributed quickly. The NAV team had an ‘all-hands-on-deck’ approach to getting us up and running. We were so pleased that we weren’t relegated to the back of the line due to the smaller size of our fund.”
Prompt Monthly Reporting
Challenge
Consistent delivery of accurate reporting is a must.
Solution
NAV delivers timely and reliable reports.
Outcome
The Gaines team is pleased with NAV’s commitment to delivery of daily reporting typically by 6:30 AM ET of the next business day and official NAV within 2 working days of period end.
