Fund of hedge funds firm Common Sense has made the decision to transition into a family office after its CEO was arrested for his involvement in a prostitution scandal.
Business Journal reported that the Portland-based firm will mostly manage Jim Bisenius’ personal wealth after the completion of the transition.
Investors, including the Fresno County Employees Retirement Association, the Cincinnati Retirement System and the Oklahoma Municipal Employees Retirement Fund, requested to redeem more than 90% of Common Sense’s asset following Bisenius’ arrest in August 2012 on charges of patronizing prostitutes. The redemptions left Common Sense with less than $150 million in assets.
Founded in 1991, Common Sense’s assets under management peaked at $4.2 billion in 2010.