Hedge Fund That Flagged Luckin Coffee Fraud Now Owns the Stock

A hedge fund manager that reportedly once accused China’s Luckin Coffee Inc. of accounting fraud is now betting on a comeback for the chain following its 2020 US delisting.

Snow Lake Capital has taken a long position in the company’s stock in anticipation that its valuation will surge, according to a presentation by the investment firm. “Luckin Coffee’s turnaround is a miracle in China’s business history,” it said.

Luckin now accounts for about 15% of the assets managed by Snow Lake, the hedge fund’s founder Sean Ma said in an interview with the Wall Street Journal on Monday. He plans ...