Prostitution Arrest Costs Common Sense Two Pension Clients

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.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...