The Buzz | Hedge fund manager who nailed 2015 China crash is hoarding cash

The Hong Kong arm of China’s biggest asset manager is amassing cash and building up short positions in a bet that the U.S.-China power games will escalate ahead of the American election later this year.
The market hasn’t fully accounted for the “extreme steps” that President Donald Trump might take in an attempt to shore up flagging poll numbers, said Gan Tian, chief investment officer of China Asset Management (Hong Kong) Ltd., who oversees almost $400 million in hedge fund assets.
“It could be to challenge China in South China Sea, it could be a military or diplomatic alliance with Taiwan that crosses the red line, or worse,” Gan said in a phone interview from Hong Kong. “If that happens it would ripple through the financial market immediately.”
Tension is building between China and the U.S. after a three-year trade dispute. Politicians in Washington are lashing out over the coronavirus outbreak, China’s treatment of its Muslim minority and its tightening grip on Hong Kong. Congress is mulling sanctions against Chinese officials and companies and proposing to curtail their access to capital and markets.
Gan cleared almost all of his positions in February and March, escaping the worst selloff since the financial crisis as the coronavirus spread globally. But even as markets have rallied, he’s still sitting tight.