(Bloomberg) -- Longtime China-bear Kyle Bass has closed his nearly four-year wager against the offshore yuan just as the trade war between the U.S. and China is intensifying.

“I don’t have a vested interest in China’s currency anymore,” the Dallas-based founder of hedge fund Hayman Capital Management said in a Bloomberg Television interview Tuesday. “I think this is such an important moment in time for U.S. national security that all the work that I’ve done over the last seven years is moving more into the political sphere than the financial sphere.”

Hayman entered its short bet on the yuan in 2015 and still had the position on as recently as March, when Bass argued that China would eventually deplete its $3.1 trillion foreign-exchange reserves trying to support its currency.

The offshore yuan has lost 2.4% against the dollar this month as trade tensions between the U.S. and China escalated anew, with the world’s two largest economies trading tit-for-tat tariffs. The U.S. Trade Representative’s office on Monday released a list of $300 billion of Chinese products to be slapped with levies even as U.S. President Donald Trump said he’ll meet Chinese leader Xi Jinping at next month’s Group-of-20 summit.

Bass rose to prominence by successfully betting against mortgages during the financial crisis. But not all of his calls in the years since have been as prescient. He predicted a collapse in Japan’s government-bond market -- a stance he said he began sharing publicly in 2010 -- but yields there proceeded to fall below zero.

Bass said that his firm still has positions in Southeast Asian currencies. The Wall Street Journal reported last month that Hayman’s most recent investor letter said that Hong Kong’s currency peg is under threat.

--With assistance from Alix Steel and David Westin.

To contact the reporter on this story: Katherine Greifeld in New York at kgreifeld@bloomberg.net

To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Mark Tannenbaum

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