James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine The economy is slowly reopening and more vaccines are reaching people. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. 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. 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. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. Buckhead Tower, Suite 400 3399 Peachtree Rd. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. 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. With the Super Bowl around the corner, who do you want to win and who do you think will win? 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. This material may not be published, broadcast, rewritten, or redistributed. This field is for validation purposes and should be left unchanged. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. 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. 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 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. 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 played semi-pro football for 12 years. Contact our office today to discuss your case. Registered in England and Wales. I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. A conversation about economies, markets, wage inequality, Congress, crypto, and more. Your email address will not be published. With only a few times in history have we had a gap even approaching these levels of GDP growth, equity market prices, corporate profits, equity market prices and PE ratios. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. The PE has risen by about 50% from a year ago. Lines and paragraphs break automatically. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. Today, his ambition is to own a NFL team. 2023 FOX News Network, LLC. A Division of NBCUniversal. Below are the states with which the firm you selected makes its notice filings. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. Yes. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. Its like a freight train that cant come to an exact halt without a crash. "These are incredibly uncertain times for the stock market and for investors," said James. 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. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. Very few recessions and market collapses have recovered in the time period that we saw in 2020. Hi, James. 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. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. "-Sonn Law Group Client. (Fox News). 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 complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. NE Atlanta, GA 30326 *by appointment only. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. Fair question. I think the phenomena is an anomaly like virtually every pocket of life were in right now. 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. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. Got a confidential news tip? Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. It wasn't immediately clear whether he had an attorney who could speak on his behalf. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. He last appeared on the network in July 2021. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. 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. Subscribe to RIA Intels thrice-weekly newsletter.]. These filings are called "notice filings". 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. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. Because in addition to unemployed, he can also now call himself whistleblower.. 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. 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. 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. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. 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. 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. 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. In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. And we know that this isnt how a strong economy operates. He earned a bachelor's degree in economics from Harvard University. 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. All material subject to strictly enforced copyright laws. This site contains attorney advertising. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. 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. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. The S&P 500 is trading at about 23 times projected forward earnings. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The Judge overseeing this case is MARGARET MILLER BERNAL. 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. Things are escalating quickly for the folks behind StraightPath Venture Partners. 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. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. Scott Gamm 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. 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. 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. You can reach us by phone at 844-689-5754 or via e-mail. 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. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. 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 was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. How Should HNW Investors Think About Them? I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. All rights reserved. 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. Do you still have a 15,000 target on the Dow? 4 . But I think that the market will rebound and potentially finish the year slightly higher. or redistributed. We want to hear from you. Data is a real-time snapshot *Data is delayed at least 15 minutes. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. All Rights Reserved. Or before an SEC investigator. // Disclaimer. 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. 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. - 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. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. Yeah. Fox News Flash top headlines for September 22. According to the. 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. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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