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) - and who doesn't? Yum! Brands (YUM) ."

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) in China, Cramer said hedge funds may short Starbucks and go long Dunkin' Brands (DNKN) .

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