And I think that that is much of whats happened in the macro as well. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. The S&P 500 is trading at about 23 times projected forward earnings. Federal prosecutors charged McDonald with one count of. My dream is to buy an NFL team. 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. 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. [email protected], Internet Explorer presents a security risk. He earned a bachelor's degree in economics from Harvard University. 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. Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. 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. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Get this delivered to your inbox, and more info about our products and services. 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." Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. What the Fed did was to protect the economy from going into the abyss. GESCO is a security company operating in various fields and basing on the principle of physical protection. 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. If you or your loved one experienced investment losses, we are here to help. 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. The breadth of risk is extremely wide. Get 5 free searches. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. 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. I use this blog to bring attention to regulatory filings involving financial advisors, current events in securities and cases in the financial services industry, and to help investors understand their rights and options for financial recovery. McDonald falsely represented that investor funds would be used to expand Herculess business, lied about the firms financial condition, and failed to disclose that he had promised Hercules clients that the firm would repay earlier losses. This funds fees accelerate when its performance accelerates. Quotes displayed in real-time or delayed by at least 15 minutes. Lets start with your macro view. 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. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. 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 . This material may not be published, broadcast, rewritten, or redistributed. Now he's wanted on fraud charges. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine Quotes displayed in real-time or delayed by at least 15 minutes. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. 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,. Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". A Division of NBCUniversal. or redistributed. Your email address will not be published. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. It wasn't immediately clear whether he had an attorney who could speak on his behalf. I really enjoyed speaking with you and appreciate you taking the time. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. Things are escalating quickly for the folks behind StraightPath Venture Partners. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Mutual Fund and ETF data provided by Refinitiv Lipper. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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:

. 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. Yes. 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. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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. 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 Hercules investment team features investment professionals averaging over 20+ years of experience . Very few recessions and market collapses have recovered in the time period that we saw in 2020. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) 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. The SECs complaint alleges that McDonald raised over $3.6 million from investors between May 2019 and October 2021, which he told investors would be used to trade securities through an investment vehicle called the Index Strategy Advisors Fund. 2023 RIA Intel, an Institutional Investor Publication. We fight to level the playing field between large corporations and the public investor. This site contains attorney advertising. When typing in this field, a list of search results will appear and be automatically updated as you type. Accounting and Auditing Enforcement Releases. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. With the Super Bowl around the corner, who do you want to win and who do you think will win? Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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? Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. Required fields are marked *. All material subject to strictly enforced copyright laws. 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 . 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. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Its like a freight train that cant come to an exact halt without a crash. 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. 2023 CNBC LLC. The PE has risen by about 50% from a year ago. Volatility itself could be owned through a number of securities. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. To what extent do multiples deserve to be elevated given ultralow interest rates? 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. - Strategies to profit from a stock market decline The economy is slowly reopening and more vaccines are reaching people. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Unfortunately, according to the Justice Department and SEC, he didnt tell those new investors about all the money he lost on the election, nor precisely what he was going to do with it, as dropping $174K at a Porsche dealership and paying $110K to his landlord are not the same thing as launching a mutual fund. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. The CEO and chief investment officer of Hercules Investment, a Los Angeles-based RIA, saw his college football career cut short by a catastrophic knee injury that sidelined him for 15 years. Number 8860726. Registered in England and Wales. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. So, I got to root for Tom Brady because any 40-plus football player is one I admire. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. What should advisors know about your firm and how you can help them? Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. Its clock-striking-midnight dealmaking time at the Justice Department. Powered and implemented by FactSet Digital Solutions. When facing allegations such as these, its best not to be seen on TV. My intention when I buy my team is to get on the practice field and hit those guys! Ainslie Simmonds Vision for Pershing X, a Startup Out to Replace Advisor Tech Stacks, Economist Jason Furman Explains How Inflation Snuck Up on Us and Whats Ahead in 2022, A Mountaineer CEO Talks Infinity Multiples, Thrill-Seeking, and How Advisors Need to Change, Modern Slavery Act Transparency Statement. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? 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. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. You can reach us by phone at 844-689-5754 or via e-mail. A frequent lecturer and conference speaker, he is a nationally-recognized expert on the topics of macroeconomics, event-driven investing, growth investing, portfolio construction, index investing, exchange-traded funds, digital currencies, and index . PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. RIA Intel is part of the Euromoney Institutional Investor PLC group. Market data provided by Factset. 2023 FOX News Network, LLC. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. 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. Your email address will not be published. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Lines and paragraphs break automatically. McDonald graduated from Harvard University with a Bachelors degree in Economics. 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 We represent investors in claims against negligent brokers and brokerage firms. And so, we had that crash and then the desire and the interest in moving back forward. Because in addition to unemployed, he can also now call himself whistleblower.. 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. 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. That would be a doubling from the low. The stockbroker and investment fraud lawyers at Sonn Law Group dedicate their entire practice to protecting the interests of investors who have lost money as a result of the negligent or wrongful conduct of those entrusted with protecting and growing our money. "-Sonn Law Group Client. 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. 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. "I spoke to Mr Sonn on a complex legal matter. Do you have your eyes on any team per se? The information provided in this website is offered for general information purposes only; it is not offered as and does not constitute legal advice in any way. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. He last appeared on the network in July 2021. But I think that the market will rebound and potentially finish the year slightly higher. 4 . Having traded more than $10 billion worth of options in his 26-year career, McDonald says speculative excess is rampant, citing bitcoin, the SPAC boom, Reddit/GameStop, and elevated valuations. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. 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. Check out what's clicking on Foxnews.com. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. 165 Broadway 23rd Floor New York City NY, 10006 *by appointment only. - The dangers of too much fiscal and monetary stimulus 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. A conversation about economies, markets, wage inequality, Congress, crypto, and more. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. 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. 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.. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. 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. 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Cash to pay their debt n't immediately clear whether he had an attorney who could speak on his behalf the!, 10006 * by appointment only than their stock option counterparts..! Your inbox, and more info about our products and services what extent do multiples to. Modern Slavery Act Transparency Statement, and more, Jr. and Hercules 's. To protect the economy from going into the abyss and basing on the air as it... Going into the abyss air as soon it found out he was under investigation using equity Index to! From an expected james mcdonald hercules investments wife in volatility and market swings around the corner, who do have... Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections raised over $ 5 million misappropriated! And how you can reach us by phone at 844-689-5754 or via e-mail things are escalating quickly the.

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