If humans are involved in a process, there will be errors. There are often many humans playing their part in the various stages of trade processing, reconciliation, accounting and ultimate production of the net asset valuation, the NAV, of a mutual fund or a hedge fund.
Are hedge funds throwing away thousands of dollars by insisting on duplicating the fund accounting function? One of the key responsibilities of the fund administrator is to calculate the fund net asset valuation, the official NAV. Surely they can get that right, right?