Fidelity to review ties with money manager after 'inappropriate' comments
Reuters
Published Oct 15, 2019 15:20
Updated Oct 15, 2019 17:17
Fidelity to review ties with money manager after 'inappropriate' comments
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.)
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