TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer is remembering his old hedge fund days.

"This is what you would do at a hedge fund," he said. "You would look at who has China exposure - Yum! China (YUMC - Get Report) - and who doesn't? Yum! Brands (YUM - Get Report) ."

Cramer said Yum! Brands trades at 27 times earnings and Yum! China trades at 26 times earnings. "Short Yum! China, go long Yum! Brands," Cramer noted.

If China were to slap a tariff on Starbucks (SBUX - Get Report) in China, Cramer said hedge funds may short Starbucks and go long Dunkin' Brands (DNKN - Get Report) .

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