To send us an e-mail, simply complete and submit the online form below. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based on his wrong prediction that the stock market would drop. McDonald was CEO of Hercules Investments LLC of Los Angeles and Index Strategy Advisors Inc. of Redondo Beach, and frequently appeared as an analyst on the CNBC financial TV news network, authorities said. (Fox News). To what extent do multiples deserve to be elevated given ultralow interest rates? Quotes displayed in real-time or delayed by at least 15 minutes. A Division of NBCUniversal. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. James McDonald from Hercules Investments, and James Camp, Eagle Asset Management director of strategic income and managing director of fixed income, join 'The Exchange' to discuss the impact . And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. This field is for validation purposes and should be left unchanged. It takes time to get back up, but we have had renewed waves of lockdowns in the fall and layoffs. Contact our office today to discuss your case. Yeah. All material subject to strictly enforced copyright laws. According to the. Save my name, email, and website in this browser for the next time I comment. When we perform well for the client, we perform well for ourselves. Very few recessions and market collapses have recovered in the time period that we saw in 2020. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view Got a confidential news tip? AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. LOS ANGELES, Oct. 10, 2019 /PRNewswire/ -- Award-winning derivatives investment management executive James A. McDonald, Jr. today announced that he has launched Hercules Investments LLC,. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. Our emphasis is on index options investing around the U.S domestic large indexes, specifically, the S&P 500, the Russell 2000, and Nasdaq 100. James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? More on that later. Whats the bear case predicated on? Mutual Fund and ETF data provided by Refinitiv Lipper. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. Its an all-weather strategy. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Questions? Number 8860726. Your email address will not be published. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. We fight to level the playing field between large corporations and the public investor. "-Sonn Law Group Client. In reality, McDonald used less than half of those funds for trading and did not engage in any trading with the funds for long stretches of time. This fund is for qualified investors only. Or, you know, anywhere, really. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. The SEC alleges that McDonald commingled the investor funds with Hercules assets and his personal assets, and used $440,000 of those funds for personal expenses, including to pay his personal credit card bills. One hundred million viewers are expected to tune into Sundays Super Bowl between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers. The Exchange James McDonald's advice to the next generation Hercules Investments CEO and CIO James McDonald offers his advice to the next generation of Black Americans. 4 . Buckhead Tower, Suite 400 3399 Peachtree Rd. Required fields are marked *. This site contains attorney advertising. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. Check out what's clicking on Foxnews.com. McDonald was CEO of Index Strategy Advisors from 2010 until 2019, when he founded Hercules, which offers market neutral portfolio management, while specializing in high-growth equity index options for clients. Thats why our ticker is NFLHX. Moneys thrown into the stock market, not just big caps, theres a whole surge of investing that weve seen, maybe with the beginning of the online trading movement, where there are pockets of individual investors who have moved into investing in a way that is creating tons of frothiness. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. James McDonald, CEO and Chief Investment Officer of Hercules Investments, a Los Angeles-based Registered Investment Advisor, is hosting a virtual event, 'Preparing Investment Portfolios for a . Registered in England and Wales. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. . The breadth of risk is extremely wide. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) All Rights Reserved. 2023 FOX News Network, LLC. But I think that the market will rebound and potentially finish the year slightly higher. McDonald was CEO of Hercules Investments LLC of Los Angeles and Index Strategy Advisors Inc. of Redondo Beach, and frequently appeared as an analyst on the CNBC financial TV news network,. When facing allegations such as these, its best not to be seen on TV. Get 5 free searches. JAMES A MCDONALD JR Agent Address 1718 HARRIMAN LN, REDONDO BEACH, CA, 90278 Directors / Officers JAMES A MCDONALD JR, agent Registry Page https://bizfileonline.sos.ca.gov/sear. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 And debt has spiraled over 50% higher to GDP than where we were last year this time. McDonald will discuss why investors should be prepared for a looming 2021 stock market crash, after an unprecedented stock market surge since the March 2020 Covid-19-driven stock market lows. Subscribe to RIA Intels thrice-weekly newsletter.]. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. Thats my personal mission. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. Please note: We are unable to take cases with losses of less than $50,000. My dream was always to play in the NFL and thats going to be my ticket. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Because in addition to unemployed, he can also now call himself whistleblower.. These filings are called "notice filings". McDonald, who graduated from Harvard University with an economics degree, expects the Dow will tumble more than 50% to 15,000, a prediction he has made several times since March 2020, before surging to new highs this year. Fox News Flash top headlines for September 22. The United States Securities and Exchange Commission subpoenaed McDonald to testify before it in November 2021, but - without advance notice - he failed to appear as required. Hi, James. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. My dream is to buy an NFL team. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker. Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! los angeles, oct. 10, 2019 /prnewswire/ -- award-winning derivatives investment management executive james a. mcdonald, jr. today announced that he has launched hercules investments llc, a los angeles-based registered investment advisor.hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum We do this because we invest in index options, which give us the flexibility to purchase contracts that rise in value when markets fall and to own very misunderstood and often overlooked asset class volatility. LOS ANGELES, Oct. 10, 2019 /PRNewswire/ -- Award-winning derivatives investment management executive James A. McDonald, Jr. today announced that he has launched Hercules Investments LLC, a Los Angeles-based Registered Investment Advisor. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. Hercules Investments provides a growth option for investors who need gains and growth, but we offer an element of downside risk protection because equity markets are disconnected from what we know is GDP contraction, debt, and all the uncertainty that comes along with a mutating virus. And so, my passion and focus in trading is very personal and Im committed to generating profits for my clients with a motivation that goes far beyond investing. Wealth Management is part of the Informa Connect Division of Informa PLC. Accounting and Auditing Enforcement Releases. This material may not be published, broadcast, rewritten, This funds fees accelerate when its performance accelerates. First, between May 2019 and October 2021, McDonald, through his control of Index Strategy Advisors, Inc. ("ISA")-an unregistered investment adviser-solicited over $3.6 million from approximately 20 investors for ISA's index hedge fund, the ISA Fund. Data is a real-time snapshot *Data is delayed at least 15 minutes. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. If you or your loved one experienced investment losses, we are here to help. Describe the ideal client profile. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. 2023 RIA Intel, an Institutional Investor Publication. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Its clock-striking-midnight dealmaking time at the Justice Department. Today, James not only discusses all things volatility but also explains different risk-related techniques professionals can use to keep clients comfortable with their portfolios in the market. Charles Canter will lead the litigation. The ideal client would have a portfolio of stocks that have appreciated with the market and while offering great growth potential is susceptible to a market downturn. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based on his wrong prediction that the stock market would drop. Fox News Flash top headlines are here. That would be a doubling from the low. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . And so, we had that crash and then the desire and the interest in moving back forward. Founded on May 26, 2005, GESCO provides private and corporate security services in various regions of the country including Baku, in accordance with the requirements of ISO 9001, ISO 14001, ISO 45001. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. Key stock indexes, which are market cap based, are near record highs. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses [press release]He appeared as a financial expert on TV. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. Market data provided by Factset. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Get this delivered to your inbox, and more info about our products and services. Legal Statement. The leader of Pershing X explains why her experience, leadership style, and the support of BNY Mellon, have positioned the new venture to disrupt how wealth managers do business. But stimulating growth is impossible if the economy isnt open. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! 165 Broadway 23rd Floor New York City NY, 10006 *by appointment only. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. Lets wrap up with football. You've successfully subscribed to this newsletter! The Judge overseeing this case is MARGARET MILLER BERNAL. The gap between corporate profits and GDP, or even corporate profits and equity market prices, is wider than its ever been by a long way. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. Contact me online or call anytime at 844-689-5754. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. Which was great for McDonald, because he apparently really muffed the market response to a Joe Biden victory over Donald Trump two years ago: He assumed that the ousting of an incompetent demagogue would tank things. In early 2021, McDonald "solicited millions of dollars worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained," the statement said. - The dangers of too much fiscal and monetary stimulus The SEC's complaint alleges that McDonald raised over $3.6 million from investors between May 2019 and October 2021 for the stated purpose of trading securities through an investment vehicle called the Index Strategy Advisors Fund, and that McDonald used less than half those funds for trading and did not engage in any trading with the funds for long stretches of time. Instead, the SEC alleges, McDonald misappropriated more than $1 million of the funds for personal expenses, including luxury vehicles and paying rent on his home, and misappropriated more than $2 million of the funds for Ponzi-like payments, payments to his Hercules' investment adviser clients and expenses associated with operating Hercules. The bull case would imply that were 50% stronger in terms of our earnings premium over our equity premium based on what we pay for earnings. The SEC's investigation was conducted by David S. Brown, Carol Kim, and Matthew O. Koop and was supervised by Marc J. Blau in the Los Angeles Regional Office. Contact me online or call anytime at 844-689-5754 SEC Charges James Arthur McDonald, Jr. and His SEC-Registered Investment Adviser Firm, Hercules Investments, LLC with Offering Fraudulent Securities Sonn Law Staff Oct 05, 2022 Posted in Investment Loss Investigations # James Arthur McDonald Jr. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, https://us02web.zoom.us/webinar/register/WN_guvDkdmgQcy4-HcSuTnb1Q, https://hercules-investments.com/hercules-public/index.html. LOS ANGELES, Oct. 10, 2019 /PRNewswire/ -- Award-winning derivatives investment management executive James A. McDonald, Jr. today announced that he has launched Hercules Investments LLC, a Los Angeles-based Registered Investment Advisor.Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Resilience is the name of the game, says Mastercard CEO Michael Miebach, We've seen resilience in the U.S. consumer, says Coca-Cola CEO James Quincey, Illinois Governor JB Pritzker: Crime is coming down gradually in the city and it's getting better, Guggenheim CIO: We are predicting the recession to start mid-year, Moderna CEO: We're preparing our FDA filing for our RSV vaccine. Prior to ISA he was Director of Strategic Initiatives for the $12 billion AUM Compass BBVA Wealth Management Group where he led the design and execution of brokerage, trust, and insurance strategies serving high net worth and ultra-high net worth clients. Believe It or Not, Its a Great Time To Be a Financial Advisor, Ares Strikes Deal for Office, Naming Rights at Los Angeles Tower, Musks Twitter Sells Off Coffee Makers, Neon Logo in Auction Blitz. Then its fine. We deliver these strategies through NFLHX. "I spoke to Mr Sonn on a complex legal matter. How Hercules Investments capitalizes on systematic volatility; The companys risk-hedging technique designed to help financial advisors and clients; How James McDonalds firm helps financial advisors grow their prospects; Hercules Investments ideal client as those who got aggressive growth goals; Allowed HTML tags: . I really enjoyed speaking with you and appreciate you taking the time. Despite the challenges of Covid, equity markets have pushed to all-time highs on most indexes in a fashion that would suggest there is no risk in the market. Our objective is to generate $10 billion for our clients in order for me to buy my football team. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. We are partnering with Nasdaq to put Nasdaq 100 Volatility Index (VOLQ) into our portfolio in a way where investors who have realized great gains from tech can rest assured knowing that in the event of a potential market downturn, our fund will be able to sustain the impact of a declining market and should provide upside. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. I played semi-pro football for 12 years. Today, his ambition is to own a NFL team. McDonald also allegedly raised over $3.5 million for securities trades through . To be clear, you expect a risk event this year will take the Dow down to 15,000 but by year end it will finish higher than today? With this risk in the market, many individual investors have to count on either continued paid stimulus or continued paychecks and loans for small business relief. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. McDonald graduated from Harvard University with a Bachelors degree in Economics. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Hercules Investments CEO/CIO James McDonald. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based on his wrong prediction that the stock market would drop because of the COVID-19 pandemic and the results of the U.S. presidential election, the U.S. attorney's office said. This field is for validation purposes and should be left unchanged. With the Super Bowl around the corner, who do you want to win and who do you think will win? // Disclaimer. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Lets start with your macro view. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. The Hercules investment team features investment professionals averaging over 20+ years of experience . Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. Its like a freight train that cant come to an exact halt without a crash. What should advisors know about your firm and how you can help them? Strategy Voice Associates, LLC https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. The Securities and Exchange Commission today announced the filing of a civil injunctive action against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. RIA Intel is part of the Euromoney Institutional Investor PLC group. from 8 AM - 9 PM ET. Volatility itself could be owned through a number of securities. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. The complaint also charges McDonald with violating Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which prohibit certain transactions by investment advisers. Do you have your eyes on any team per se? McDonald also allegedly raised over $3.5 million for securities trades through the Index Strategy Advisors Fund and misappropriated half of the funds for personal expenses. Your email address will not be published. The case status is Pending - Other Pending. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. The SEC further alleges that, from February 2021 to October 2021, McDonald raised $1.5 million through the sale of equity investments in Herculess business. If markets rise, our fund is managed to match or exceed that growth based on our ability to go long or short with index options. Powered and implemented by FactSet Digital Solutions. A conversation about economies, markets, wage inequality, Congress, crypto, and more. However, as markets continue to thrive, our fund will not follow the path of other downside protection strategies, passive only strategies, which fall precipitously in rising market. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Absolutely. And so, this is artificial. The affidavit of service states that the summons and complaint were served on James McDonald by service to Beatriz Lima, "as person in charge of the place of business / authorized to accept service on behalf of Hercules Investments, LLC, a California limited liability company at 1718 18 Harriman Lane, #A, Redondo Beach, CA 90278." Now he's wanted on fraud charges. Im a football player disguised as a portfolio manager. Tax Advantages Are a Selling Point for Investment in CRE. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. Whats your takeaway from GameStop, AMC, Blackberry, etc.? It wasn't immediately clear whether he had an attorney who could speak on his behalf. Legal Statement. James McDonald from Hercules Investments and James Camp, Eagle Asset Management director of strategic income and managing director of fixed income, discuss the impact of the $1.9 trillion coronavirus relief package to the stock and bond markets. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". Web page addresses and e-mail addresses turn into links automatically. The S&P 500 is trading at about 23 times projected forward earnings. Meanwhile, sophisticated investors including institutional firms, insurance companies, and ultra-high net worth individuals have sought higher returns during growth phases and greater protection during recessionary phases by utilizing derivatives, particularly options," said James McDonald, who also serves as the firm's Chief Investment Officer. He appeared as a financial expert on TV. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. The bear case is that the effects of the shutdowns havent fully been realized yet. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. South Ozone Park, New York, United States View. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. [USA Today]. You can reach us by phone at 844-689-5754 or via e-mail. By Greg Bartalos February 05, 2021 James McDonald (Courtesy photo) One hundred million viewers are expected to tune into Sunday's Super Bowl between the defending champion Kansas City Chiefs and Tampa . Lines and paragraphs break automatically. Im going to play on my own team and practice. The SEC further alleges that, from February 2021 to October 2021, McDonald raised $1.5 million through the sale of equity investments in Hercules's business. The complaint also charges McDonald with violating Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which prohibit certain transactions by investment advisers. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Sign up for free newsletters and get more CNBC delivered to your inbox. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. How Should HNW Investors Think About Them? He last appeared on the network in July 2021. For a free consultation, please call us now at 866-827-3202or complete ourcontact form.
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