The Cincinnati Retirement System has divested from fund of hedge funds firm Common Sense Investment Management after the firm’s CEO was entangled in a prostitution scandal.
The Portland Business Journal reported that the pension fund, which had about $100 million invested in the Oregon-based hedge fund firm, made the decision after Jim Bisenius’ arrest. Bisenius was among nine men arrested last week on charges of patronizing prostitutes as part of a sting operation.
Bisenius, who faces up to one year in prison and may pay up to $5,000 in fines, will remain in his role at Common Sense.
Managing approximately $2.9 billion in assets, Common Sense has managed to keep out of the media spotlight up until this scandal since its inception in 1991.