Virtually all investors in Common Sense Investment Management have fled the fund of hedge funds firm after its CEO was caught in a prostitution scandal.
CNBC reported that clients have requested to redeem more than 90% of Oregon-based Common Sense’s assets around the time of Jim Bisenius’ arrest in late August on charges of patronizing prostitutes. The redemptions would leave Common Sense with less than $150 million in assets by year-end.
Some of the investors who have pulled their money include the Fresno County Employees Retirement Association, the Cincinnati Retirement System and the Oklahoma Municipal Employees Retirement Fund.
Common Sense has stuck by Bisenius’ side since his arrest, stating that the CEO’s “recent personal transgressions bear no reflection on [the firm's] outstanding team of professionals or the quality of the portfolio management.”
Common Sense has managed to keep out of the media spotlight up until this scandal since its inception in 1991.