Common Sense Investment Management has poached another Société Générale (Euronext Paris: GLE-FR) executive as it continues to rebuild after the arrest of its founder in a prostitution sting and the loss of most of its clients.
Common Sense, a fund of hedge funds based in Portland, Oregon, is set to announce the appointment of Marc Lorin as its president. Lorin was a senior director at SocGen derivatives brokerage unit Newedge, where he worked from 1994 until earlier this month (the French bank finalized the acquisition of Chicago-based Newedge in May).
"Common Sense-our brand and product suite-is evolving, leveraging from our 23 years of history and simultaneously looking to the future of alternative investments. The management team has been structured to underline new governance; we are hiring, and will continue to hire, industry veterans," new Common Sense CEO Jonathan Gane, another Newedge veteran, said in an email addressing Lorin's new role.
"Our newly formed advisory board will provide guidance as we expand our product offer and build bespoke solutions for institutional clients. We look forward to announcing more news in the coming months."
Lorin and his team were responsible for selling Newedge products to hedge fund managers and institutional investors-including funds of funds.
"Having worked with Marc for a number of years as a colleague at Newedge, we are very excited for him, and his future at CSIM," Duncan Crawford, global head of alternative investment solutions at Newedge, said in an email. "He joins a strong leadership team there and the firm appears poised to do some exciting things."
Common Sense has been reeling from the August 2013 arrest of its founder, Jim Bisenius. The once $3.7 billion firm saw nearly all of its investors redeem. It now manages between $100 million and $200 million, according to a Common Sense spokesman.
Common Sense has worked aggressively to rebuild.
In July, the firm announced a management overhaul. Gane, who worked at SocGen and Newedge from 1998 to 2013, became CEO (he had joined Common Sense in April 2013). Scott Thompson, a partner at Common Sense for 17 years, became chief investment officer. Mike Wietecki, former chief compliance officer at hedge fund firm Whitebox Advisors, was named COO. And Kristie Leake, with Common Sense since 2008, became CFO.
More recently, Common Sense landed two high-profile advisory board members. One was Philippe Teilhard de Chardin, the former global head of prime brokerage at Newedge. The other was Frank Jungers, the former chairman and CEO of Saudi Aramco.
Common Sense initially backed Bisenius after his arrest, saying he would remain CEO and CIO.
"Jim Bisenius' recent personal transgression bears no reflection on this outstanding team of professionals or the quality of portfolio management at CSIM," the firm said in September 2013 as the news broke. "He will deal with this recent event as the personal matter that it is."
Bisenius is now chairman of the advisory board. He is no longer a member of the management team and remains affiliated with the firm in a consulting capacity only, according to a Common Sense spokesman.
-By CNBC.com's Lawrence Delevingne