Another major investor is planning to divest from fund of hedge funds firm Common Sense Investment Management after the firm’s CEO was entangled in a prostitution scandal.
The letter Portland-based wealth manager Arnerich Massena sent to clients that was obtained by Business Journal indicates that the firm may end its 20-year relationship with Common Sense partly due to Jim Bisenius’ arrest earlier this month on charges of patronizing prostitutes. Arnerich Massena also blamed Oregon-based Common Sense’s recent poor performance for the decision.
eVestment previously reported that the Cincinnati Retirement System also made the decision to drop the fund of hedge funds firm following Bisenius’ arrest.
Currently managing approximately $2.9 billion in assets, Common Sense’s assets under management peaked at $4.2 billion in 2010. Arnerich Massena manages about $20 billion in assets.