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Komfie Manalo, Opalesque Asia:

China’s decision on Wednesday to further devalue its currency is expected to benefit hedge fund manager David Einhorn as his Greenlight Capital Re Ltd., insurer is expected to earn $30.4 million or 2.2% of its investment assets, reported Bloomberg.

Einhorn is one of the few stock pickers to benefit if the U.S. dollar rises 10% against the yuan. The report said Einhorn’s hedge funds also have similar short positions against the yuan.

Robert Savage, the chief executive officer of New York-based provider of foreign exchange trading strategies CCTrack Solutions, commented, "In the hedge fund world, currency speculation is done by macro players, not by stock pickers. This is the oddity of Einhorn putting on a position like this. It makes him an anomaly." CCTrack is backed by a unit of Citic Group Corp., China’s biggest conglomerate.

Savage said that hedge funds usually do not wager bets against China’s currency because the trade is both difficult and expensing. He said that even hedge funds that hold Chinese stocks do not hedge their currency risk because of the inconsistent and short-lived fluctuations in the yuan.

On Wednesday, the People’s Bank of China (PBoC) issued a statem......................

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