(Updates with charge in sixth paragraph, ownership in seventh.)
Sept. 4 (Bloomberg) -- Common Sense Investment Management LLC, a $2.9 billion investor in hedge funds, said founder James A. Bisenius will continue to run the firm after he was arrested in a prostitution sting last week.
Bisenius, 62, was among nine people charged on Aug. 29 in Tigard, Oregon, Jim Wolf, a spokesman for the city’s police department said today by phone. Police had placed online advertisements that day for paid sex, waited for the accused to show up at a hotel in Tigard and arrested Bisenius in the evening, he 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,” Dean Derrah, president of Common Sense, said in an e-mailed statement today. “Jim Bisenius’ recent personal transgression bears no reflection on this outstanding team of professionals or the quality of portfolio management at CSIM.”
Common Sense, based in Portland, Oregon and started by Bisenius in 1991, puts money in hedge funds on behalf of clients including pension funds. Clients include the Oklahoma Municipal Retirement Fund, Cincinnati Retirement System and the Wisconsin Province of the Society of Jesus, according to a marketing presentation dated July 31.
Bisenius didn’t answer calls to his mobile and home phones. A spokeswoman for Common Sense declined to comment on the arrest beyond the firm’s statement.
Bisenius was charged with a class A misdemeanor that carries a maximum prison term of one year and a fine of as much as $5,000, Wolf said.
Bisenius and Janet L. Bisenius control more than 65 percent of Common Sense. Its oldest fund, the $1 billion Common Sense Partners, lost less than 0.1 percent this year through July, according to the marketing documents. Funds that invest in equity funds gained 6.2 percent, according to the Bloomberg Active Indices for Funds.
The firm’s $1.8 billion Common Sense Long Biased fund returned 8.4 percent, compared with a return of 20 percent for the Standard & Poor’s 500 Index.
--With assistance from Nick Tamasi in Princeton and Katherine Burton in New York. Editors: Christian Baumgaertel, Josh Friedman