Kynikos Associates primarily employs the following strategies in portfolios managed on behalf of their clients: a fundamental, short investment strategy; and/or a fundamental investment strategy of identifying and trading in undervalued or overvalued securities. The firm's investment approach is based on extensive fundamental research of both companies and industries. With regard to the Ursus hedge funds, the Kriticos hedge funds and the managed account and single-investor fund portfolios that are managed in parallel to these funds, Kynikos Associates seeks to identify and sell short equities which will be revalued downward from then-current prices due to deteriorating profit outlook, unsustainable growth, increased industry competition or lack of a viable long-term business model. With regard to the Kynikos Opportunity hedge funds and the managed account and single-investor fund portfolios that are managed in parallel to these, the firm seeks to identify mispriced securities, those undervalued as well as those overvalued, which they think they can trade profitably. The investment strategies used by Kynikos Associates include buying and selling, including selling short, securities (including securities not listed on a national securities exchange or for which quotations are not available on the FINRA pink sheets or which are restricted as to their disposition), and interests in domestic and foreign securities including convertible securities, options and puts and calls on stocks and warrants. The firm may also buy and sell, including selling short, money market and other financial instruments, including U.S. Treasury bills, notes and bonds, corporate and municipal bonds, certificates of deposit, GNMA securities, money market funds and repurchase and reverse repurchase agreements, currencies, and futures or forward contracts, and any other interests in any of the foregoing.