Experience and Technology Set NAV Apart as the Top Choice for Digital Assets Fund
Client
Sarson Funds
Background
John Sarson worked on Wall Street for more than ten years before starting his own advisory firm dedicated to digital assets. His interest in digital assets emerged in 2016 after he observed Bitcoin’s strong performance in a trend-following portfolio. He realized that few of the sophisticated financiers he worked with knew anything about it. Shortly after, he launched Sarson Funds. His team uniquely segments the market by bringing traditional finance applications to the digital assets universe. Each of the six digital asset hedge funds his firm currently manages focuses on a specific underlying sector, such as DeFi or stable coins. He worked with other administrators before partnering with NAV Fund Administration, but found their ability to support digital assets lacking, which drove him to find a more knowledgeable provider.
How NAV Helped
Experienced Team
Challenge
Few fund administrators offered experienced bandwidth for digital asset funds.
Solution
Other providers did not have the capabilities to support Sarson Funds’ needs, so they looked for one that did. NAV has an experienced digital assets team encompassing more than 300 dedicated members from financial reporting, IT, and compliance departments.
Outcome
“Our NAV service team is fantastic, and it never feels like we’re siloed into one group. It truly feels like we have the entire firm’s resources at our disposal. For us, NAV’s willingness to grow as our business model changes over time makes them a lifelong partner,” Sarson said.
In-Depth Digital Assets Knowledge
Challenge
Digital assets require unique and complex administrative processes.
Solution
Sarson Funds needed a team that understood digital assets and offered deep knowledge and specialized expertise. NAV was able to offer that, providing support from a qualified staff comprising CPAs, CFAs, MBAs, and software engineers with relevant education and experience.
Outcome
“I’ve worked with other administrators, but their inability to handle blockchain transactions forced my hand, because we are committed to this space,” Sarson said. “Unlike traditional finance, unique issues in digital assets constantly present themselves. For example, you can get rebased and the number of tokens in your wallet can decline. We needed an administrator with an understanding of this new paradigm that could adapt to how this balance changes over time. NAV has provided that for us.”
Compliance and Regulatory Support
Challenge
Sarson required digital asset-specific support to meet compliance and regulatory requirements.
Solution
NAV was able to offer support to Sarson Funds beyond the scope of standard administration services, including assistance with regulatory filings, review of offering documents, and other related services.
Outcome
“On a scale of 1-10, NAV gets a 9.5, only because I don’t give out 10s,” Sarson explained. “I think NAV understands our PPMs better than we do, and they help keep us compliant . If we messed up even a little bit, the SEC could put us out of business, but with NAV there is never even a small opening for a regulator to disrupt our business model.”
Committed Administrator
Challenge
Sarson sought stability and focus in their fund administrator.
Solution
NAV has a rich history of 30+ years as an independent, debt-free fund administrator.
Outcome
Sarson Funds specifically wanted to work with a firm committed to fund administration that didn’t engage in mergers and acquisitions. NAV has never been a part of merger or acquisition strategies and focuses solely on fund administration services.
Competitive Pricing
Challenge
Sarson’s primary goal was to focus on quality services without sacrificing cost-effectiveness.
Solution
NAV was able to offer Sarson Funds better service with a more than 25% reduction in pricing vs. their previous administrator.
Outcome
“NAV offers more robust capabilities than its competitors and charges less. Overall, that’s a win in our eyes,” Sarson said.
Digital Asset-Focused Technology with Easy Access
Challenge
Transparent, dynamic, always-accessible reporting is key to manager and investor comfort levels.
Solution
NAV offers detailed reporting through a web portal and mobile app.
Outcome
“NAV offers best-in-class technology from a user experience perspective, and for tracking positions,” Sarson stated. “Part of what makes our clients comfortable is the transparency NAV provides as a third-party administrator. When there is a big move in digital assets, our clients can log in to the portal, see a net asset value and see the value of their account verified by a third party in a timely way. Automating this process through APIs sets NAV apart from its competitors.”
Timely Reporting
Challenge
Digital assets month-end reporting via previous administrators had historically been incomplete and tardy.
Solution
NAV offers reporting within 5 business days.
Outcome
Accurate and timely reporting is consistently reliable for Sarson and his investors.
