At least one sector of the economy is still thriving, if the success of its hedge fund is any indication.

AdultVest Inc. announced that it had closed its Priapus Investment Fund, which invests in the adult entertainment industry, to new investors, and it has a second fund in the works.

It seems the smut business is impervious to economic downturns.

“In spite of the U.S. and global economic condition, the Priapus Investment Fund, LLC, is on track for a great year,” fund manager Francis Koening said.

The Beverly Hills, Calif.-based fund has in the past year invested in such subtley-named ventures as iPorn.com and Handjob.com, as well as several adult content libraries and a public company that runs “gentleman’s clubs.”

Koening says AdultVest has identified several more opportunities, and that Priapus will be fully invested by early next year.

But Koenig and AdultVest are not resting on their laurels—in the pornography industry, success always breeds sequels. The firm is readying the Priapus Investment Fund II to continue to take advantage of the public’s insatiable desire for mature content.