New York (HedgeCo.net) – In a letter to investors, Bridgewater Associates founder Ray Dalio expressed a change in opinion on the Chinese market, citing increased risk in the market and the recent sharp decline.

The Wall Street Journal shared a concerning quote from the letter on Wednesday, stating that “there are now no safe places to invest and the environment looks riskier.” Bridgewater then issued a statement to CNBC on Thursday that stated, “Bridgewater’s view that China faces debt and economic restructuring challenges, and that it has the resources and the capable leaders to manage these challenges, remains the same.”

The change in posture came after Bridgewater’s All Weather fund lost 3.78% in June and that erased all but 0.49% of the year to date gains the fund had accumulated. Dalio has been a long-term bull on China and the sharp decline in the Shanghai Index during the month of June was undoubtedly a big cause for the decline in the All Weather fund.

Rick Pendergraft
Research Analyst
HedgeCoVest