When typing in this field, a list of search results will appear and be automatically updated as you type. 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. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. 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. RIA Intel is part of the Euromoney Institutional Investor PLC group. Its like a freight train that cant come to an exact halt without a crash. from 8 AM - 9 PM ET. Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". 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. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. 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 . Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. 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. These filings are called "notice filings". Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. 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. I think we will retest the previous lows of last March before buying comes back in. Im going to play on my own team and practice. 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? And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. Please note: We are unable to take cases with losses of less than $50,000. Volatility itself could be owned through a number of securities. 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. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. NE Atlanta, GA 30326 *by appointment only. 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.. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. He earned a bachelor's degree in economics from Harvard University. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Then its fine. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. How Should HNW Investors Think About Them? All material subject to strictly enforced copyright laws. 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. 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. When facing allegations such as these, its best not to be seen on TV. 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 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. 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. Wealth Management is part of the Informa Connect Division of Informa PLC. 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. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. We represent investors in claims against negligent brokers and brokerage firms. 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:

. 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." 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. [USA Today]. McDonald also allegedly raised over $3.5 million for securities trades through . *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. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Fair question. Quotes displayed in real-time or delayed by at least 15 minutes. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Web page addresses and e-mail addresses turn into links automatically. South Ozone Park, New York, United States View. "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. 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. Legal Statement. Fox News Flash top headlines are here. Very few recessions and market collapses have recovered in the time period that we saw in 2020. "I spoke to Mr Sonn on a complex legal matter. 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. He appeared as a financial expert on TV. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. Sign up for free newsletters and get more CNBC delivered to your inbox. To what extent do multiples deserve to be elevated given ultralow interest rates? Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. Vaccinating the public will not happen as quickly as most expect. Thats my personal mission. 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. But I think that the market will rebound and potentially finish the year slightly higher. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 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. If you or your loved one experienced investment losses, we are here to help. Its clock-striking-midnight dealmaking time at the Justice Department. // Disclaimer. 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. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. Im a football player disguised as a portfolio manager. Scott Gamm "There's a disconnect between Main Street and Wall Street, but we had to do it. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. 2023 FOX News Network, LLC. 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. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. So, I got to root for Tom Brady because any 40-plus football player is one I admire. Check out what's clicking on Foxnews.com. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. 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. 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.. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. 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. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. 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. 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. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. Absolutely. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. 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. Contact me online or call anytime at 844-689-5754. Yes. Registered in England and Wales. Whats your takeaway from GameStop, AMC, Blackberry, etc.? My dream was always to play in the NFL and thats going to be my ticket. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. 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. . 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