Hedge funds back off bets on China devaluation

By Patrick GrahamLONDON (Reuters) – Two of the three types of hedge funds which bet heavily on a sharp devaluation of China’s yuan last year have backed off the trade, leaving only some ultra-bearish “Black Swan” investors holding long-term bets, fund managers and bankers said. Hedge fund sales desks at four of Wall Street’s biggest banks told Reuters that many U.S. players had made money betting against China by the time Beijing took aggressive steps to prop up the