Common Sense Investment Management, a $2.9 billion hedge fund-of-funds manager, said founder James A. Bisenius will continue to run the firm after a local newspaper reported he was arrested in a prostitution sting last week.
Mr. Bisenius was among nine people arrested on Aug. 29 in Tigard, Ore., according to The Oregonian. Police, who had placed online advertisements for paid sex, had waited for the accused to show up at a hotel in Tigard, the newspaper said.
“The firm's partners have decided that Jim will remain in his role as chief executive officer and chief investment officer, and he will deal with this recent event as the personal matter that it is,” said Common Sense in an e-mailed statement Wednesday. “Jim Bisenius' recent personal transgression bears no reflection on this outstanding team of professionals or the quality of portfolio management at CSIM.”
Common Sense, which Mr. Bisenius started in 1991, puts money in hedge funds on behalf of investors, including pension funds. Investors include the $2 billion Cincinnati Retirement System and $675 million Oklahoma Municipal Retirement Fund, according to a marketing presentation dated July 31.
Mr. Bisenius didn't answer calls to his mobile phone. A spokeswoman for Common Sense declined to comment on the newspaper report beyond the firm's statement.