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Hedge Fund’s Decade-Long Wait for Yuan Crash Nears Payday

  • Crescat’s Smith has been wagering on devaluation since 2014
  • Sees China crisis ‘much more serious’ than US’s in 2008
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Making Sense of China’s Markets
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For the better part of a decade, a US hedge-fund manager who has never even set foot in China has been patiently betting that the yuan will stage a massive collapse, one so deep that its value could be cut in half.

Since 2014, Crescat Capital’s Kevin Smith has been plowing as much as 10% of his $136 million macro fund into options betting against the currency. Sometimes it lost money. Sometimes it paid off, even though the major devaluation he was looking for never happened.