As slumping oil prices squeeze Saudi Arabia’s finances, a few big hedge funds are wagering that the kingdom will be forced to abandon a three-decade-old currency peg that has been a bulwark of its economic and financial stability. Among them is Zach Schreiber’s PointState Capital, a firm backed by billionaire Stan Druckenmiller that made a $1 billion profit in 2014 betting that oil would fall, according to people familiar with the matter. Knighthead Capital Management, the event-driven hedge fund co-founded by Tom Wagner, has also joined the trade, said the people, who asked not to be identified because the information is private. The firms are using derivatives including forward contracts to bet that the largest Arab economy, which depends on oil for about 75 percent of its export revenues and 80 percent of its budget revenues, will need to devalue the riyal. The currency has been trading at a […]