Battered by last year's collapse in the credit markets, Sandalwood Securities has been buoyed by this year's market upswing and says the future looks rosy for its credit strategies with an event-driven edge
By Claire Makin
Last year was a lonely place for Sandalwood Securities. As the only sizeable fund of hedge funds to specialise in credit, Sandalwood battled on all fronts as valuations collapsed across the sector.
This year is a very different story. Credit and distressed plays have soared off their lows, and most of Sandalwood's underlying managers are posting double-digit gains, according to Martin Gross, who founded the firm in 1990. "We are in a total sweet spot for distressed debt investing and expect it to continue for several years," he says.
Sandalwood is unable to confirm its numbers publicly for legal reasons, but says that 2009 gains for some of its managers have already outstripped 2008...