Investment Consultant Recommends Hedge Fund Managers Stay Out Of The News For Things Like Driving At High Speeds, Soliciting Prostitutes Online


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.

Fund Responds to Chief’s Prostitution Arrest [Dealbook]
Earlier: Common Sense Investment Management Not Sweating The Small Stuff (Its Founder Being Busted In A Prostitution Sting)


Bill Gross Recommends Golden Retrievers

Apparently Bob Gross the Cat wasn't the only four-legged creature that took up real estate in Gross's heart (though she was the only one entrusted with making investment decisions for his firm).

Hardcore Harvard Investment Group Soliciting Student Partners Who Aren't Afraid To Take Some Risks With Their Parents' Money

You're a Harvard undergrad and you want to beef up your resume so that in a couple years, top hedge funds will be begging you to take meetings with them. You figure joining some sort of on-campus investor group might do the trick, but there are so many to choose from it's difficult to figure out which one is going to be your ticket to the big leagues. Except it's not actually that difficult at all. In fact, the answer is quite simple. There are student investment clubs and there is Black Diamond Capital Investors. The former, piddling little after-school programs for, when it comes down to it, amateurs. The latter, an opportunity to put your balls on the table and make some real money. If that sounds like something you'd be interested, please have a check or money order for at least $1,000 ready,* which is the minimum investment members/partners must make, so that management can ensure everyone's got skin in the game. “Black Diamond is all about taking investments to the next level,” said Patrick M. Colangelo ’14, who founded the club last semester. He said that the mandatory minimum investment exists to ensure member engagement in the group, which is limited to 25 participants. "We select experienced finance students who are willing to put up the minimum capital contribution because we seek partners who will be vested in the operations and performance of the fund," Colangelo said. "It really gets the most out of our partners.” Member Arash Alidoust ’13 said he believes the buy-in is critical to the success of Black Diamond, which claims to be Harvard’s largest private growth fund. “It makes you much more concerned and much more innovative,” Alidoust said. “Black Diamond becomes part of your life.” And while the initial outlay be difficult for some college kids to swing, rest assured you're going to make it back many times over. Members said that Black Diamond’s investment strategy differs significantly from that of other financial groups on campus. Like the hedge funds it emulates, Black Diamond is a riskier investment than some of its peer groups, a risk which members hope will be rewarded. Colangelo said that the organization is aiming for a 30 percent return on its investment...“What Black Diamond has been created for is for investors who have a little bit of experience, joining a group of other experienced individuals who really want to do something different,” Colangelo said. Alidoust said that the strength and diversity of Black Diamond’s team of investors allows the club to break out of the typical “framework” of investing. “We encourage innovation and new ideas about investing, rather than just sticking with the old ideas,” he said. Exclusive Investment Club Asks Student Members for $1,000 [Crimson] *Though feel free to invest up to $20,000.