In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. 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. Subscribe to RIA Intels thrice-weekly newsletter.]. Quotes displayed in real-time or delayed by at least 15 minutes. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. 2023 CNBC LLC. "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 Hercules investment team features investment professionals averaging over 20+ years of experience . - The dangers of too much fiscal and monetary stimulus 165 Broadway 23rd Floor New York City NY, 10006 *by appointment only. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Lets start with your macro view. McDonald graduated from Harvard University with a Bachelors degree in Economics. 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. 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. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Yes. 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. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. Contact me online or call anytime at 844-689-5754. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. Now he's wanted on fraud charges. He last appeared on the network in July 2021. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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. Check out what's clicking on Foxnews.com. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. RIA Intel is part of the Euromoney Institutional Investor PLC group. This site contains attorney advertising. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Describe the ideal client profile. 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. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine "These are incredibly uncertain times for the stock market and for investors," said James. When facing allegations such as these, its best not to be seen on TV. Number 8860726. Then its fine. 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 . 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. NE Atlanta, GA 30326 *by appointment only. All rights reserved. That would be a doubling from the low. This fund is for qualified investors only. 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. Powered and implemented by FactSet Digital Solutions. 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. Fri, Feb 12. Questions? "There's a disconnect between Main Street and Wall Street, but we had to do it. And so, this is artificial. 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. 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. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. Do you have your eyes on any team per se? I really enjoyed speaking with you and appreciate you taking the time. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. 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. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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. 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. 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. We represent investors in claims against negligent brokers and brokerage firms. A Division of NBCUniversal. I think the phenomena is an anomaly like virtually every pocket of life were in right now. Hercules Investments CEO/CIO James McDonald. I think we will have another risk event that pulls the market down. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. 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,. 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. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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. 2023 RIA Intel, an Institutional Investor Publication. All material subject to strictly enforced copyright laws. 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. Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. Tax Advantages Are a Selling Point for Investment in CRE. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Our objective is to generate $10 billion for our clients in order for me to buy my football team. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Im a football player disguised as a portfolio manager. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. 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. Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. Wealth Management is part of the Informa Connect Division of Informa PLC. Please note: We are unable to take cases with losses of less than $50,000. Below are the states with which the firm you selected makes its notice filings. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. When typing in this field, a list of search results will appear and be automatically updated as you type. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. 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. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. Buckhead Tower, Suite 400 3399 Peachtree Rd. 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.. 2023 FOX News Network, LLC. The equity markets have behaved puzzlingly well in 2020 with the backdrop of a global pandemic and lots of uncertainty around the evolution of the coronavirus and its impact on small businesses, households, and way of life. Market data provided by Factset. 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. Key stock indexes, which are market cap based, are near record highs. 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. Vaccinating the public will not happen as quickly as most expect. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view 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 . Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. Save my name, email, and website in this browser for the next time I comment. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. 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. 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 case status is Pending - Other Pending. How Should HNW Investors Think About Them? 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. Today, his ambition is to own a NFL team. Its clock-striking-midnight dealmaking time at the Justice Department. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. Got a confidential news tip? 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. Transparent package of experience fund is accessible to individual investors and their advisors in a world of hurt,,! Not a doomsday picture, but its a handful of companies that have flourished the. Recovered, but the recovery hasnt brought sufficient growth life were in right now as if all economic are. And misappropriated funds for personal expenses and Ponzi-like payments fairness to James McDonald, television is much. 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