Earlier this month, Common Sense Investment Management founder and CEO Jim Bisenius found himself ensnared in a sting-op designed (quite successfully!) to nail guys responding to online ads for hookers, who turned out in fact to be undercover cops. Yesterday, CSIM said in a statement that Big Jim's "recent personal transgressions bear no reflection on...the quality of portfolio management" at the firm, and that Bisenius will "remain in his role as Chief Executive Officer and Chief Investment Officer." Now, some guy has chimed in to remind everyone that when you're running a hedge fund, it's important not to doing anything that could draw the attention away from your kick-ass returns, be it a messy divorce, shoplifting, texting while driving, or banging a whore.
...several industry insiders, who spoke on the condition of anonymity because they did not want to damage any relationships, highlighted the potential harm the news could have on the fund’s reputation. The hedge fund industry is notoriously media shy and Common Sense has managed to stay out of the news for more than two decades since it was founded.
“It’s just a distraction,” said Charles T. Cassidy of Cambridge Associates, which acts as a consultant for more than 900 investors with $3 trillion in overall assets. “Your goal is always to not have your investment manager in the news for things outside of their day job. Whether it is him getting arrested for prostitution or even a high-profile divorce — it’s not good news and it’s distracting,” he added.