Saturday, 24 September 2016
Last updated 1 day ago
Jan 17 2014 | 4:11am ET
Common Sense Investment Management, which lost most of its client assets following a prostitution scandal, will not become a family office, contrary to earlier reports.
The Portland, Ore.-based fund of hedge funds denied a report in the Portland Business Journal that it would return what's left of its outside capital. But that doesn't mean there haven't been changes at the firm—notably the exit of James Bisenius from the firm's top post.
Bisenius' arrest in August as part of a prostitution sting sent the firm into a downward spiral, as its assets plummeted from $3.2 billion to less than $150 million as spooked investors redeemed. Bisenius, who was also Common Sense's chief investment officer, has given up the CEO's title to Jonathan Gane.
"The Common Sense team has no plans to close its doors," the firm said in a statement "Currently the firm is managing in excess of $100 million and has outside capital in the Common Sense Partners and Common Sense Long-Biased strategies which remain open to outside investors. Mr. Bisenius remains involved in the firm."
Common Sense employed 30 people prior to the scandal. According to the PBJ, Bisenius has cut "generous" severance checks to laid-off employees and has worked to find them new jobs.