When typing in this field, a list of search results will appear and be automatically updated as you type. All rights reserved. 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. In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. To send us an e-mail, simply complete and submit the online form below. NE Atlanta, GA 30326 *by appointment only. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Whats your takeaway from GameStop, AMC, Blackberry, etc.? Fri, Feb 12. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) Global Business and Financial News, Stock Quotes, and Market Data and Analysis. "These are incredibly uncertain times for the stock market and for investors," said James. A conversation about economies, markets, wage inequality, Congress, crypto, and more. 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. Or before an SEC investigator. (Fox News). "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. Lets wrap up with football. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. 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? 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 . "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. It wasn't immediately clear whether he had an attorney who could speak on his behalf. from 8 AM - 9 PM ET. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. 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. 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. Lines and paragraphs break automatically. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. 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. 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. 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. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. // Disclaimer. Subscribe to RIA Intels thrice-weekly newsletter.]. 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. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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. Absolutely. 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. Believe It or Not, Its a Great Time To Be a Financial Advisor, Ares Strikes Deal for Office, Naming Rights at Los Angeles Tower, Musks Twitter Sells Off Coffee Makers, Neon Logo in Auction Blitz. 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. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. 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. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . The PE has risen by about 50% from a year ago. Key stock indexes, which are market cap based, are near record highs. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. 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. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. To what extent do multiples deserve to be elevated given ultralow interest rates? Accounting and Auditing Enforcement Releases. 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. I really enjoyed speaking with you and appreciate you taking the time. Im going to play on my own team and practice. Check out what's clicking on Foxnews.com. Yeah. Mutual Fund and ETF data provided by Refinitiv Lipper. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. 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. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. All rights reserved. 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. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. The SEC appreciates the assistance of the U.S. Attorney's Office, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation Division. 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. Wealth Management is part of the Informa Connect Division of Informa PLC. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. 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: . And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! 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. 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. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy.
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