Key Takeaways
- • Jim Bisenius, founder and CEO of Portland-based Common Sense Investment Management, was arrested on August 29, 2013, in an undercover prostitution sting operation in Tigard, Oregon, along with eight other men.
- • Common Sense Investment Management manages $3.2 billion in assets as a fund of funds structure, down from $3.9 billion the prior year and $4.2 billion in 2011, ranking as the 46th largest fund of funds globally.
- • The fund's performance through July 31, 2013, showed the Common Sense Long Biased Offshore fund up 8.3 percent year-to-date, with notable institutional investors including the Cincinnati Retirement System, Oklahoma Municipal Employees Retirement Fund, Fresno County Employees Retirement Association, and the Los Angeles Fire and Police Pensions Fund.
- • Police executed the sting by placing online advertisements for prostitution services, resulting in seven arrests within the first four hours, demonstrating the effectiveness of the undercover enforcement operation.
Summary
Jim Bisenius, founder, CEO, and chief investment officer of Common Sense Investment Management, was arrested on August 29, 2013, during a prostitution sting operation conducted by Tigard, Oregon police. The operation targeted solicitation activity in the Portland area, with Bisenius among nine men taken into custody at a local hotel. Police executed the enforcement action by posting online advertisements for prostitution services on websites, generating immediate response; the department's decoy officer received phone calls within hours of the advertisement's placement, with seven arrests made within the first four hours of the operation.
Common Sense Investment Management, established in 1991, operates as a fund of funds structure managing $3.2 billion in assets as of the arrest date. The firm's asset base has contracted from $3.9 billion the previous year and $4.2 billion in 2011, reflecting broader market or operational dynamics. The Common Sense Long Biased Offshore fund delivered 8.3 percent returns through July 31, 2013. According to InvestHedge rankings, Common Sense ranked as the 46th largest fund of funds globally as of December 31, 2012, substantially smaller than industry leader Blackstone Alternative Asset Management, which managed $44.81 billion.
The fund maintains a significant institutional investor base, including public pension funds and retirement systems. Notable clients identified in reporting include the Cincinnati Retirement System, Oklahoma Municipal Employees Retirement Fund, Fresno County Employees Retirement Association, Illinois Student Assistance Commission, and the Los Angeles Fire and Police Pensions Fund. The University of Toledo Foundation holds $5.85 million with the firm. The arrest of the firm's founder and chief executive raises potential questions regarding fund governance, client confidence, and operational continuity in light of the reputational implications of the legal proceedings.
Common Sense Investment Management, established in 1991, operates as a fund of funds structure managing $3.2 billion in assets as of the arrest date. The firm's asset base has contracted from $3.9 billion the previous year and $4.2 billion in 2011, reflecting broader market or operational dynamics. The Common Sense Long Biased Offshore fund delivered 8.3 percent returns through July 31, 2013. According to InvestHedge rankings, Common Sense ranked as the 46th largest fund of funds globally as of December 31, 2012, substantially smaller than industry leader Blackstone Alternative Asset Management, which managed $44.81 billion.
The fund maintains a significant institutional investor base, including public pension funds and retirement systems. Notable clients identified in reporting include the Cincinnati Retirement System, Oklahoma Municipal Employees Retirement Fund, Fresno County Employees Retirement Association, Illinois Student Assistance Commission, and the Los Angeles Fire and Police Pensions Fund. The University of Toledo Foundation holds $5.85 million with the firm. The arrest of the firm's founder and chief executive raises potential questions regarding fund governance, client confidence, and operational continuity in light of the reputational implications of the legal proceedings.
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