New York City-based Kynikos Associates is a hedge-fund manager. The firm, founded by James Chanos in 1985, is known as a short-seller most famous for predicting and betting on Enron’s collapse.
Chanos made Alpha magazine’s Top 25 Earners in 2008 ranking 12th and earning $225 million. The firm’s Ursus Fund returned 60% in 2008 after shorting financial, real estate, construction and auto stocks, among others. Kynikos ranked 72nd out of the 100 largest hedge funds managers in Alpha’s 2009 Hedge Fund 100.
Kynikos was among several hedge funds being investigated by the U.S. Securities and Exchange Commission as to whether the funds traded improperly after being given advance notice by a research analyst of a negative report on Fairfax Financial Holdings Ltd., according to the Wall Street Journal. Chanos leads a Washington, D.C., lobbying group called the Coalition of Private Investment Companies, calling for advisers of hedge funds, venture capital and private equity funds to register with the SEC.