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. Thats my personal mission. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. 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. Wealth Management is part of the Informa Connect Division of Informa PLC. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. Yeah. 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. Number 8860726. "There's a disconnect between Main Street and Wall Street, but we had to do it. Im going to play on my own team and practice. My intention when I buy my team is to get on the practice field and hit those guys! We want to hear from you. 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. Do you still have a 15,000 target on the Dow? 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. McDonald graduated from Harvard University with a Bachelor's degree in Economics. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. [Like this article? I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. With the Super Bowl around the corner, who do you want to win and who do you think will win? On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. The bear case is that the effects of the shutdowns havent fully been realized yet. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. The Hercules investment team features investment professionals averaging over 20+ years of experience . The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. Things are escalating quickly for the folks behind StraightPath Venture Partners. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION 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. When we perform well for the client, we perform well for ourselves. I really enjoyed speaking with you and appreciate you taking the time. Our specialization in volatility is what sets us apart because there are many funds and strategies which offer potential gains in a declining market, but as passive indexes or passive strategy, they are bound to lose money when markets are flat or rising. Strategy Voice Associates, LLC James Arthur McDonald Jr., 50, was charged with a single fraud count and could face up to 20 years in prison if convicted, the U.S. attorney's office said in a statement. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. I think we will retest the previous lows of last March before buying comes back in. Tax Advantages Are a Selling Point for Investment in CRE. 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. All rights reserved. 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,. Or before an SEC investigator. You can reach us by phone at 844-689-5754 or via e-mail. 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. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine His demeanor was professional and pleasant and I would not hesitate to use him in future matters. 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. 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. This site contains attorney advertising. Lines and paragraphs break automatically. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. Please note: We are unable to take cases with losses of less than $50,000. The SEC's complaint, which was filed in the Central District of California, charges McDonald and Hercules with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. 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. More on that later. Lets start with your macro view. 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. 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,. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. 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 bulls point to loads of liquidity, low rates, and solid earnings and guidance. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. To what extent do multiples deserve to be elevated given ultralow interest rates? The actual profits that have been generated and the guidance that has increased are based on a small section of the market. Quotes displayed in real-time or delayed by at least 15 minutes. On September 21, 2022, the SEC announced charges against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. A Division of NBCUniversal. But I think that the market will rebound and potentially finish the year slightly higher. Now he's wanted on fraud charges. And I think that that is much of whats happened in the macro as well. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. Web page addresses and e-mail addresses turn into links automatically. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. When typing in this field, a list of search results will appear and be automatically updated as you type. What should advisors know about your firm and how you can help them? [USA Today]. 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. Our strategies offer downside protection and even potential upside gains with protracted market downturns. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. GESCO is a security company operating in various fields and basing on the principle of physical protection. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. Investment adviser firms registered with the SEC may be required to provide to state securities authorities a copy of their Form ADV and any accompanying amendments filed with the SEC. And so, we had that crash and then the desire and the interest in moving back forward. Mutual Fund and ETF data provided by Refinitiv Lipper. Hi, James. McDonald, who faces up to 20 years imprisonment if convicted, is believed to be in hiding, the U.S. Attorneys office said in a news release. We deliver these strategies through NFLHX. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. You've successfully subscribed to this newsletter! How Should HNW Investors Think About Them? 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. - Strategies to profit from a stock market decline So, common sense would say, what changed in one year for a 50% premium in a market that most people would agree has been propelled with no monetary policy and stimulus? - 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. A conversation about economies, markets, wage inequality, Congress, crypto, and more. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) This material may not be published, broadcast, rewritten, Federal prosecutors charged McDonald with one count of. The SECs complaint charges McDonald with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. 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. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. Top Hercules Investments Employees James McDonald Chief Executive Officer. Hercules Investments CEO/CIO James McDonald. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. Fair question. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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. 2023 FOX News Network, LLC. Thats why our ticker is NFLHX. Data is a real-time snapshot *Data is delayed at least 15 minutes. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. 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. 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. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. Describe the ideal client profile. The case status is Pending - Other Pending. 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. Get 5 free searches. 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.. But stimulating growth is impossible if the economy isnt open. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. 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. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. (Fox News). We represent investors in claims against negligent brokers and brokerage firms. 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. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. Your email address will not be published. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. And so, this is artificial. 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? "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. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. 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. 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. - The dangers of too much fiscal and monetary stimulus Powered and implemented by FactSet Digital Solutions. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. This funds fees accelerate when its performance accelerates. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. 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. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact This field is for validation purposes and should be left unchanged. Check out what's clicking on Foxnews.com. 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 think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. 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 . Im a football player disguised as a portfolio manager. Key stock indexes, which are market cap based, are near record highs. 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. 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. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. GESCO is a security company operating in various fields and basing on the principle of physical protection. 4 . To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. 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. "I spoke to Mr Sonn on a complex legal matter. 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. The breadth of risk is extremely wide. 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. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. Or, you know, anywhere, really. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. 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 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. Got a confidential news tip? Scott Gamm Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! 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. Of course, like most of the people brought on by CNBC to explain how the market will react to certain things (like talking heads on any subject on any 24-hour news channel), being generally right about those things was not a booking requirement. 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. 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. 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. 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.
Personalized Tumblers With Straws,
Is Hella Aave,
Chen Show Mao Daughter Passed Away,
Ben Francis House Cotswolds,
Most Educated President And First Lady,
Obituaries Allegany County, Ny,
Christina Simons Lush,