Fund Health Check

Gross leverage is the sum of the absolute value of every non-cash position divided by AUM. A fund holding $30M of long and short positions on $25M of AUM runs 1.2x gross leverage. Higher gross leverage amplifies both gains and losses and can force deleveraging in a fast market.

Without a high-water mark, a fund can charge a performance fee on a partial recovery even if LPs are still underwater from an earlier drawdown — effectively charging twice for the same gains. A high-water mark requires NAV to exceed its prior peak before any new performance fee accrues.

The Herfindahl-Hirschman Index (HHI) sums the squared percentage weight of every position. A lower HHI means exposure is spread across more names; a high HHI means a handful of positions dominate the book, so a single-name shock can drive most of the fund's P&L.

Daily NAV computation is the institutional standard because it surfaces pricing and reconciliation errors quickly. Monthly or quarterly NAV is common at smaller funds but increases the risk that a problem goes undetected for weeks before it is caught.

No. This tool produces an illustrative operational score from the numbers you enter. Nyx Fund runs a shadow NAV alongside your fund administrator as a complement, never a replacement for an independent administrator or auditor.