Ray Dalio, co-chairman and co-chief investment officer at Bridgewater Associates, posted on popular Chinese microblogging site Weibo on Wednesday to dispel rumors about a Bridgewater blow-up. 

This came after an alleged "email from Wall Street" went viral in China in recent days saying Bridgewater has "crashed" or "is in trouble" due to "huge redemption and fraud." The hedge fund giant became famous for making money during the 2008 financial crisis. 

Dalio wrote: "You have my word that that is totally false and that Bridgewater is totally safe," attaching the client note with the firm's performance and views.

He condemned "bad people" who spread such rumors. "I think we might have identified the rumor monger which we will pursue legally and disclose publicly if we are able."

'Double-digit losses in line with expectations'

Bridgewater Associates LP has posted double-digit losses so far this year amid sharp market declines sparked by the coronavirus outbreak, according to a note sent to clients on Wednesday.

Through March 16, Bridgewater's All Weather 12 percent volatility "risk parity" fund fell about 14 percent for the year; its Pure Alpha 18 percent volatility hedge fund declined about 21 percent; and its Major Markets 14 percent volatility hedge fund dropped about seven percent, Dalio wrote.

Dalio wrote that the performance was "not what I would want" but was "consistent with what I would have expected under the circumstances."

Bridgewater has assets under management of about 160 billion U.S. dollars, according to its website, and is trusted by some of the world's largest investors to safeguard their money no matter the economic environment.

The S&P 500 index tumbled seven percent on Wednesday, triggering a 15-minute trading halt of Wall Street's main indexes for the second time this week, or the fourth time within a month so far, on fears that stimulus measures may not be enough to avert a coronavirus-driven recession.

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Dalio said Bridgewater's portfolios were positioned for relative economic strength but also had hedges on in case of an unanticipated steep market decline. The firm's risk controls worked as designed, he said, adding that Bridgewater remained liquid and able to adjust its positions.

"Going forward, the world has now crossed a very dangerous threshold for financial markets and economies that poses great risks for all investors," Dalio wrote, citing interest rates falling below zero percent amid an economic downturn, inequality and populism.

"It is one we have been preparing for a long time."

(With input from Reuters)