Common Sense Not Becoming Family Office

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of