While the S&P 500 may have closed out of correction territory Wednesday, the recent tumble in U.S. equities caught many investors and even big hedge funds flatfooted.
But hedge fund Passport Capital, led by John Burbank, doesn't appear to be among those knocked down amid the slide, having seen the correction coming.
"We had been expecting a market breakdown for some time," Burbank told CNBC's "Closing Bell" in an interview. "What's remarkable is how commodities have traded and emerging markets have traded the last couple years and yet the faith in the U.S. economy has been so high and the faith in the Fed hiking rates has been so high it really propped up the dollar and U.S. markets."