U.S. billionaire investor Wilbur Ross warns Dallas Mavericks owner Mark Cuban could very well "lose his shirt" if he bets against Donald Trump becoming president.
Cuban earlier this week said he has his "Trump hedge on," predicting stock market chaos if GOP presidential nominee Trump wins the election.
"In the event Donald wins, I have no doubt in my mind the market tanks," Cuban warned in an interview Tuesday on Fox Business Network.
"There are so many external global influences on our market," Cuban said. "You know, what money comes here when there is uncertainty overseas, what money goes into Treasurys, where does money go if rates go higher or lower?"
Cuban proclaimed he wasn't taking chances in the November presidential election.
"I have my Trump hedge on," asserting "if the polls look like there's a decent chance Donald could win," he'd "put a hedge on" that's worth "over 100 percent of my equity positions and my bond position, as well, that protects me just in case he wins."
Pressed on what was so "horrible about the prospect" of a President Trump, Cuban, who has endorsed Hillary Clinton, replied: "All the uncertainty."
"We don't know what Donald Trump's plans are," he said. "All we know are a little bit about his immigration, which tends to change on a day-to-day basis, and we know he will reduce taxes significantly."
Asked about his reaction to Cuban's strategy, Ross told Fox Business Network later in the week: “I think he’ll lose the shirt that he is wearing with that bet.”
The W.L. Ross chairman and CEO warned that you shouldn't underestimate Trump.
"He's gonna be giving a very big speech next week here in New York City. It's a very important event because he will lay out in pretty good detail his economic plan. I think that will be a transformative moment," Ross said.
Trump is seeking to quell concerns he lacks the discipline or policy know-how to make a competent president, even as the list of fellow Republicans deeming him unfit for the Oval Office grows, the Associated Press reported.
Some 50 Republican former national security officials have signed an open letter calling Trump the most reckless candidate in history, prompting a counterattack from Trump, who said the signers share blame with Hillary Clinton for making the world "a mess" and fueling the Islamic State group's formation.
An investor and businessman who made his billions advising bankruptcies and restructuring flailing companies, Ross was No. 20 in Newsmax's 100 Most Influential Business Leaders in America.
Ross is a force in the steel, coal, telecommunications, foreign investments, and textiles industries. He spent 25 years with Rothschild Inc.'s bankruptcy practice and then founded investment firm WL Ross in 2000. It was acquired by Invesco in 2006. He has spent the recent years turning around troubled banks, first the Bank of Ireland and then the Bank of Cyprus.
Ross successfully bet on the Irish banking system when it was on the ropes. Ross is known for restructuring failed companies in industries such as steel, coal, telecommunications, foreign investment and textiles. As of June 2015, Forbes listed Ross’ net worth at $3 billion.
Ross, who specializes in leveraged buyouts and distressed businesses, leads a group of investors who last year poured 1.3 billion euros ($1.47 billion), into Eurobank Ergasias, the third-largest bank in Greece, the New York Times said.
(Newsmax wire services contributed to this report).
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