Fund of Hedge Funds

A new chapter for Sandalwood as the credit market bounces back

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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

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