Monday, 27 June 2016
Last updated 20 min ago
Sep 9 2013 | 10:00am ET
Common Sense Investment Management may insist that CEO James Bisnenius' arrest in a prostitution sting is merely a "personal matter," but at least two of its clients appear to disagree.
Two public pensions with roughly $170 million combined at the $3.8 billion firm have terminated it in the wake of Bisenius' arrest last month. The Cincinnati Retirement System on Thursday voted to terminate the fund of hedge funds manager and redeem its $100 million, while the Fresno County Employees' Retirement System moved to pull about $68 million.
Both pensions made the decision following Bisenius' arrest on Aug. 1 in Oregon as part of a sting operation that netted nine alleged johns in the Portland suburb of Tigard. Common Sense, whose majority owner is Bisenius' wife, said that Bisenius would remain the firm's CEO and chief investment officer.
For its part, Fresno had already placed Common Sense on watch. The pension elected to terminate as a result of performance, a planned change in direction and the news of Bisenius' arrest.