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Sorry if I sound naïve, but I'm new to the financial field(especially new to quantitative finance). I've seen 2 types of definitions for NAV when I search the internet.

NAV = (Assets - Liabilities)

and some other sites say:

NAV = (Assets - Liabilities) / (Number of outstanding units)

Which is it? Also, could someone please elaborate on "Number of outstanding units" when it comes to Hedge Funds?

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    $\begingroup$ Both are valid definition. The second formula is just the NAV per outstanding units whereas the first one is the total NAV of the fund. The NAV is divided into shares and the number of outstanding units is just how many shares this fund has. $\endgroup$ – skoestlmeier Mar 1 '19 at 16:07