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Leverenz likes tapping into rising-market growth by corporations like Prada, that are domiciled elsewhere. He doesn't need to own shares of companies in China's cyclical industries, and he worries about capital-intensive operations, infrastructure spending bubbles, and governance. But he still thinks China will drive growth in luxury goods, and that Prada's creativity makes it an "extraordinary company, with a defendable enterprise and long-tail progress." About eighty% of Prada inventory is owned by insiders.

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