How Cache secures your assets while protecting your wealth
Srikanth Narayan
Founder and CEO
Before I founded Cache, I surveyed hundreds of friends and colleagues and found that they struggled to manage their large stock positions. We had identified an important problem people needed help with and a solution they described as a ‘no-brainer.’ We quickly assembled an incredibly talented team that could bring the product vision to market. However, unlike other consumer products, we needed to go beyond identifying a critical problem and building an innovative solution.
At Cache, we’re not building a product our customers will spend a small amount of their time or money on. We focus on a critical aspect of their lives - their financial well-being. And our products help in managing a substantial portion of their overall net worth.
The stakes are high for our clients, so “move fast and break things” is not in our DNA. The only way we can be successful is to focus on one ingredient more than anything else - TRUST.
How we’re protecting our clients
Our clients have usually accumulated large stock positions through successful investment decisions or different types of equity compensation. For many of them, this stock is the most valuable asset they own. It’s often the key that unlocks their plans for the future.
To be worthy of their trust, we had to do a lot of really hard things – and do them well:
Cache is a broker-dealer and an investment adviser registered with the SEC and a member of FINRA.
Our engineering team spent a year building and fine-tuning a brokerage platform they would be excited to use themselves. In fact, now we are. We prioritized not just a user-friendly experience but also the development of a robust platform built for the unique problem of large stock positions.
We do not hold any client assets. Instead, we decided to use battle-tested, reputable providers to serve these needs. Our funds are custodied at BNY Mellon, the world’s largest custodian bank (used by the likes of Vanguard for their funds). Our brokerage assets are held at Apex – a clearing and custody broker that has served firms like Wealthfront, Robinhood, Ally, and more.
Cache accounts and exchange funds are each protected by SIPC up to $500K in stocks. On top of that, both Apex and BNY Mellon hold private insurance that provides coverage well above the SIPC limits.
We built a highly-qualified team with the skill and experience to build a durable platform, make informed investment decisions, and simplify the process for our clients.
Our Investments team has managed multi-billion dollar portfolios at Goldman Sachs, Eaton Vance, and others, including the largest exchange funds.
Our Operations team has managed the private family office for a major tech entrepreneur and worked on concentrated positions at Vanguard.
Our Product and Engineering teams have built world-class products at Uber, Robinhood, Stripe, and LinkedIn.
(and plan for the long term)
We have been lucky to partner with investors who believed in what we were building. We are backed by top-tier venture firms and about 40 angel investors across technology and finance, and we have years of operational runway. We also have a built-in a succession plan should anything impact our ability to serve clients.
In a world where very little is known about exchange funds outside private wealth channels, we opted to be fully transparent about the product we are building. We’ve created detailed guides and interactive tools to explain Exchange Funds clearly, and we spend hundreds of hours educating our clients and detailing every aspect of our product operations. Our focus on transparency also includes turning down many investors who aren’t a good fit for the Exchange Fund.
What our clients say
We’re launching our first fund and onboarded clients successfully, and I couldn’t be more proud of what we’ve built – or the principles we adhered to as we built it. Our quest to earn and maintain trust is a never-ending journey, and we have a lot more we plan to do there.
I’m excited to offer a solution to Tom’s problem, but I’m absolutely delighted that he felt comfortable putting his stocks on our platform. If there’s anything I can do to help you understand our products or how our platform protects our clients, let me know.
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Detailed Info
More detailed information
Cache Exchange Fund I, LLC (incepted March 8, 2024) returned 25.1% (vs. 17.4% for the Nasdaq-100 Index), outperforming by 7.7% returns net of fees since inception.
Cache Exchange Fund - GNU, LLC (incepted June 30, 2024) returned 18.1% (vs. 7.2% for the Nasdaq-100 Index), outperforming by 10.9%. returns net of fees since inception.
Cache Exchange Fund - Unix, LLC (incepted August 30, 2024) returned 16.3% (vs. 7.6% for the Nasdaq-100), outperforming by 8.7%. returns net of fees since inception.
Detailed Info
More detailed information
The Sharpe ratio evaluates risk-adjusted performance by dividing a portfolio's excess returns over the risk-free rate by its volatility. However, its effectiveness is influenced by the selected time period, as different intervals can yield varying volatility estimates, potentially leading to inconsistent assessments of risk-adjusted return
Sharpe ratio was determined by calculating the monthly returns for the exchange funds and for the NASDAQ 100 Index and applying the formula: (annualized monthly returns - risk-free rate) / (monthly volatility annualized). A 3-month U.S. Treasury was used for the risk-free rate.
Cache Exchange Fund I, LLC: 1.44 (vs. 1.03 for the Nasdaq-100 Index)
Cache Exchange Fund - GNU, LLC: 1.44 (vs. 0.54 for the Nasdaq-100 Index)
Cache Exchange Fund - Unix, LLC: 1.40 (vs. 0.65 for the Nasdaq-100 Index)
Detailed Info
More detailed information
Since inception, annualized tracking error is represented against the Nasdaq-100 benchmark. Tracking error has been to the upside, which will help with portfolio management in future years.
Cache Exchange Fund I, LLC: 3.8%
Cache Exchange Fund - GNU, LLC: 3.9%
Cache Exchange Fund - Unix, LLC: 3.8%
Since inception - December 31st, 2024, annualized tracking error Average Realized is represented against the Nasdaq-100 benchmark.
