Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Fidelity to review ties with money manager after 'inappropriate' comments

Published 2019-10-15, 03:20 p/m
Fidelity to review ties with money manager after 'inappropriate' comments
GS
-
FSCFX
-

By Ross Kerber

BOSTON (Reuters) - Fidelity Investments criticized money manager Kenneth Fisher on Tuesday over what it called inappropriate remarks he made at an investment conference last week, saying it was reviewing the $500 million Fisher's firm manages for the mutual fund giant.

"We are very concerned about the highly inappropriate comments by Kenneth Fisher. The views he expressed do not align in any way with our company's values," Fidelity spokesman Vincent Loporchio said. "We do not tolerate these types of comments at our company."

Fisher Investments manages money within the $8 billion Fidelity Strategic Advisers Small-Mid Cap Fund (O:FSCFX). His firm manages more than $100 billion, including at top U.S. public pension funds.

A Fisher spokesman did not immediately return a message seeking comment.

Boston-based Fidelity's review underscores building pressure on Fisher. He has already apologized for comments he made at a California investment conference on Oct. 8.

An attendee, Alex Chalekian, chief executive of a financial advisory firm, called attention to the unsavory comments the day after the conference in a video posted on Twitter that went viral.

He said Fisher had spoken about genitalia, "picking up on a girl" and financier Jeffrey Epstein, who committed suicide in August while being held in jail awaiting trial on sex trafficking charges.

"It was a true debacle," Chalekian, who referred to other unacceptable remarks, said in his Twitter video.

On Oct. 10, Michigan's $70 billion retirement system dropped Fisher Investments over the remarks, according to a letter sent to the state's investment board. Fisher had managed $600 million for the retirement system, money that will now be managed internally.

Fisher Investments is also a sub-adviser on the $600 million Goldman Sachs (NYSE:GS) Multi-Manager Global Equity Fund. Goldman Sachs spokesman Patrick Scanlan declined to comment.

(This story corrects name to Fisher in paragraph seven.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.