Save my name, email, and website in this browser for the next time I comment. Our strategies offer downside protection and even potential upside gains with protracted market downturns. Absolutely. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. Prosecutors allege that McDonald concealed massive financial losses from some clients and used some investment money for personal expenses, spending some of it at a Porsche dealership and on a website that sells designer menswear. To what extent do multiples deserve to be elevated given ultralow interest rates? A conversation about economies, markets, wage inequality, Congress, crypto, and more. 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. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact 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. It wasn't immediately clear whether he had an attorney who could speak on his behalf. NE Atlanta, GA 30326 *by appointment only. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Accounting and Auditing Enforcement Releases. "These are incredibly uncertain times for the stock market and for investors," said James. All Rights Reserved. "There's a disconnect between Main Street and Wall Street, but we had to do it. We can deliver these same strategies to investor portfolios with less than $1 million," said Mr. McDonald, Chief Executive Officer of Hercules and previous winner of the Top 10 Advisors Rising Stars award from ETF Report magazine. Of course, we know that theres tremendous risk, not just to our health, but to the sustainability of small businesses, to the credit and economic security of households and to the outlook for how we will move forward past the pandemic. Questions? Scott Gamm 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. 2023 CNBC LLC. You can reach us by phone at 844-689-5754 or via e-mail. Quotes displayed in real-time or delayed by at least 15 minutes. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine - Why volatility as an asset class is key for 2021, Its important for investors to be prepared for stock market volatility, as the economic outlook remains fragile in 2021, McDonald said. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! Instead, McDonald allegedly 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. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. This site contains attorney advertising. Lets start with your macro view. 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. A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. Lines and paragraphs break automatically. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. Please note: We are unable to take cases with losses of less than $50,000. You've successfully subscribed to this newsletter! The complaint also alleges that McDonald commingled the investor funds with Herculess assets and his personal assets, and used $440,000 of those funds for personal expenses, including to pay his personal credit card bills. "For nearly 100 years investment firms have sought to address the average investor's goals with simplistic and inefficient mutual funds, or expensive and highly inconsistent stock picking. The PE has risen by about 50% from a year ago. And so, we had that crash and then the desire and the interest in moving back forward. James McDonald is a 25-year veteran of the investment industry and was named one of America's top 10 investment advisors by ETF.com in 2012. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. The SEC alleges that McDonald, a former guest commentator on CNBC, raised more than $5.1 million from 23 investors and clients, and misappropriated more than $2.9 million of those funds for personal expenses and Ponzi-like payments to earlier investors. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. 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. Now he's wanted on fraud charges. My dream was always to play in the NFL and thats going to be my ticket. Hi, James. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Im going to play on my own team and practice. All material subject to strictly enforced copyright laws. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. All rights reserved. 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. So, I got to root for Tom Brady because any 40-plus football player is one I admire. According to the complaint, McDonald also appears to have terminated his previous phone and email accounts and told one person that he planned to vanish.. Wealth Management is part of the Informa Connect Division of Informa PLC. "In our view, index options are a far more efficient and low- cost way to implement growth strategies for client portfolios compared with using funds or individual stocks. Its like a freight train that cant come to an exact halt without a crash. Volatility itself could be owned through a number of securities. These filings are called "notice filings". McDonald graduated from Harvard University with a Bachelor's degree in Economics. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. 2023 RIA Intel, an Institutional Investor Publication. 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. Contact our office today to discuss your case. Lets wrap up with football. 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. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. A man who ran two California-based investment companies and frequently appeared as a TV financial news analyst was charged Wednesday with securities fraud for allegedly bilking clients out of millions of dollars, federal prosecutors said. The case status is Pending - Other Pending. 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? Covid-19 continues to spread rapidly and the vaccine rollout has been slower-than-expected, which is a worrisome combination for the economy and the stock market., The discussion will be streamed via Zoom at this link: https://us02web.zoom.us/webinar/register/WN_guvDkdmgQcy4-HcSuTnb1Q. GESCO is a security company operating in various fields and basing on the principle of physical protection. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. 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." 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. 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,. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. Number 8860726. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. Below are the states with which the firm you selected makes its notice filings. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? 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. *Our firm, in some cases, advance costs and expenses of the case, and in that event, are recovered from the gross recovery of any settlement or verdict. Fox News Flash top headlines for September 22. This funds fees accelerate when its performance accelerates. We deliver these strategies through NFLHX. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. James McDonald Current Workplace Hercules Investments Location 633 W 5th St Ste 6770, Los Angeles, California, 90071, United States Description Read More Industry Finance General Finance Discover more about Hercules Investments James McDonald Work Experience and Education Work Experience Chief Investment Officer Vishnu Wealth Management 2017-2019 The bear case is that the effects of the shutdowns havent fully been realized yet. 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. 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. We fight to level the playing field between large corporations and the public investor. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. This field is for validation purposes and should be left unchanged. 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.. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. Quotes displayed in real-time or delayed by at least 15 minutes. 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 Its clock-striking-midnight dealmaking time at the Justice Department. 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. 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. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. CHICAGO--(BUSINESS WIRE)--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 2021 Stock Market Crash, on Thursday, January 14, 2021 at 3pm EST. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. Subscribe to RIA Intels thrice-weekly newsletter.]. He appeared as a financial expert on TV. This inflation will cause interest rates to rise in the medium term or long term and the necessary pullback in the markets will be a result of investors taking risk off the table. He argues the stimulus package will fail to rehabilitate the economy and thinks investors are too sanguine about the vaccines rollout, citing logistics and trust issues surrounding the vaccine. 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. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. According to the complaint, McDonald falsely represented that investor funds would be used to expand Hercules's business, lied about the firm's financial condition, and failed to disclose that he had promised Hercules clients that the firm would repay earlier losses. Its an all-weather strategy. We want to hear from you. // Disclaimer. Charles Canter will lead the litigation. WealthManagement.com Staff | Nov 05, 2020. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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.
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