Pension fund drops Portland hedge fund after prostitution arrest

Pension fund drops Portland hedge fund after prostitution arrest
James Allen Bisenius

Cincinnati Retirement System trustees on Thursday voted to drop Portland hedge fund Common Sense Investment Management after the firm's CEO, Jim Bisenius, was arrested in a prostitution sting.

Common Sense manages roughly $100 million, or 5 percent of the system's assets, according to WCPO in Cincinnati, which first reported the story.

The system made the decision after Bisenius' arrest.

Others might not be far behind.

The retirement fund for employees of Fresno County in California in April, put the fund "on watch" because it was underperforming its benchmarks. It also noted that two of the firm's four portfolio managers — critical employees — left this year.

Common Sense has historically outperformed benchmarks, but its performance appears to be slipping.

Its assets under management are down to $3.8 billion from a high of $4.2 billion, according to annual reports filed with the Securities and Exchange Commission and an in-depth Business Journal investigation last year.

Bloomberg and The New York Times reported this week that its assets are down even further to $2.9 billion.

Common Sense technically is a fund of hedge funds, which means it raises money from investors and then parcels the money out to a variety of hedge funds. Hedge funds are investment vehicles for the wealthy and large investors like pension funds and insurance companies.

Its investor include several municipal pension funds.

Bisenius is a prominent philanthropist and well known for his Christian ministry.

The Portland Business Journal is a KATU News partner.

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