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Trump's Trade War Has Hedge Funds Diving for Cover in China

  • Pinpoint, SPQ have cut net exposure to region’s equities
  • FengHe Asia Fund cut allocation to China to six-year low
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Coutts' Kelemen Favors U.S. Over China Stocks
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Donald Trump’s threats of a trade war with China are sending jitters through the hedge-fund community.

Pinpoint Asset Management and SPQ Asia Capital have recently cut a measure of risk called net exposure -- the difference between bullish and bearish bets -- for hedge funds that invest in China. FengHe Asia Fund, which focuses on China, Taiwan and Vietnam, has reduced its allocation to Chinese stocks to the lowest level since 2012.