CINCINNATI -- Cincinnati Retirement System trustees voted Thursday to fire an investment advisor that manages about 5 percent of the system’s assets after the founder of Common Sense Investment Management was arrested in a prostitution sting in Oregon.
James Bisenius was one of nine men arrested after responding to an Internet ad soliciting sex, according to published reports. He faces a Class A misdemeanor charge, which carries up to one year in jail and a $5,000 fine.
Bisenius is the CEO of the Portland-based fund of funds, which has about $3 billion in assets under management and invests in hedge funds on behalf of clients, including the Cincinnati Retirement System.
The firm manages "approximately 5 percent of the whole portfolio ... about $100 million," said Chris Meyer, a retirement system trustee and managing principal of the downtown-based investment advisory firm, Fund Evaluation Group.
“The firm was on the watch list already for personnel departures late last year,” Meyer said. “Their performance was not an issue, but two of their senior investment advisors left last year.”
When the prostitution arrest became public this week, “the committee just decided to terminate them and look for a new manager.”
Meyer said the transition should take place without risk of investment losses to the city.
“We’ll get our money back from Common Sense and then move to a new fund of funds manager,” he said. “We’ll take that up in our December meeting.”