Focused approach to
multi-strategy credit and event driven
hedge fund investing

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Portfolio Objectives

Produce consistent risk-adjusted returns through all market cycles.

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General Investment 
Manager Characteristics

Fundamental bottom-up analytical culture.

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Due Diligence &
Risk Management

Rigorous monitoring and frequent communication with managers.

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About

Sandalwood Securities, Inc. (“Sandalwood”) was founded in 1990 by Martin Gross and was among the earliest fund of hedge fund managers. Over the past three decades of investing, through cycles and structural changes in the markets, the core mission has not changed. Sandalwood invests with what we believe are exceptional hedge fund managers active in credit, event and equity strategies in a disciplined pursuit of consistent risk-adjusted returns over time.

Martin J. Gross
Founder & President

Marty Gross directs investment strategy and oversees Sandalwood’s funds of funds. His career in fund management began in 1983, when he tracked and evaluated the performance of investment managers on behalf of high net worth individuals. He formed Sandalwood Securities in 1990, and has overseen the growth of his company for over 25 years.

Before he began his career in investment management, Marty practiced tax and corporate law in New York City, working in the corporate finance division of L.F. Rothschild, Unterberg, Towbin. A member of the New Jersey and New York Bars, he has written numerous articles for The Wall Street Journal, Barron’s, Foreign Affairs and other renowned financial publications. He frequently lectures on fund of fund investment strategies at industry conferences.

Marty is a member of the Board of Trustees of Brandeis University and the Board of Overseers for the Brandeis International Business School, and served as Chairman of the University’s Investment Committee. He is the Chairman of the Washington Institute for Near East Policy, a member of The Council on Foreign Relations, and he serves on the Board of Trustees of the New York Historical Society. Marty served on the Committee on Research Libraries of the New York Public Library where he established, and continues to endow, the Martin J. Gross Collection of Voltaire, one of the world’s most important collections of the great writer’s works, as well as on the Dean’s Council of New York University Law School.

Marty earned his BA, Summa Cum Laude, from Brandeis University in 1972. He received a BA and MA from Brasenose College, Oxford University in 1974, and then went on to earn a JD from The University of Chicago Law School in 1977. Subsequently, Marty studied at New York University Law School, where he earned an LLM 1981.

Portfolio Objectives

  • Produce consistent risk-adjusted returns through all economic cycles
  • Monitor and evaluate exposure to “market risk” including stock market direction, interest rates and commodity prices
  • Limit use of leverage
  • Manage a diversified portfolio of idiosyncratic positions with a value orientation
  • Demonstrate our willingness to concentrate in high conviction areas

General Investment Manager Characteristics

  • Fundamental bottom-up analytical culture
  • Strong risk management processes and top-down awareness of market and macro trends, factors, technical and other structural considerations
  • Specialized expertise, predominantly across credit and event strategies: restructuring, litigation, structured credit, activism, capital structure arbitrage, M&A, value plus catalyst and corporate events
  • Underlying managers all have significant personal investment in their funds
  • Strong sourcing networks
  • Deep teams and resources
  • Demonstrated ability to outperform across market cycles

Due Diligence & Risk Management

  • Rigorous monitoring and frequent communication with managers
  • Analyze sector and geography exposure on a monthly basis
  • Scrutinize underlying holdings, themes and return drivers
  • Possess a detailed and thorough understanding of all managers’ strategies and underlying risk
  • Conduct extensive background checks on key members of all potential investment funds prior to allocating capital

Operational Due Diligence

  • Conduct operational infrastructure and internal control examinations
  • Engage in manager meetings approximately every 12-18 months, documented by a corresponding review report
  • Sandalwood’s proprietary scoring system was developed to ensure managers are assessed for key areas and monitored for shifts over the life of the investment in addition to comparative analysis among managers
  • Risk-based approach for ongoing monitoring of existing investments
  • CFO holds veto-authority on the Investment Committee for operational deficiencies

Contact

Sandalwood Securities, Inc.
101 Eisenhower Parkway, Third Floor
Roseland, NJ 07068

Phone
973-233-8800

Investor Relations Inquiries
investorrelations@sandalwoodsecurities.com

Martin J. Gross
Founder & President

Marty Gross directs investment strategy and oversees Sandalwood’s funds of funds. His career in fund management began in 1983, when he tracked and evaluated the performance of investment managers on behalf of high net worth individuals. He formed Sandalwood Securities in 1990, and has overseen the growth of his company for over 25 years.

Before he began his career in investment management, Marty practiced tax and corporate law in New York City, working in the corporate finance division of L.F. Rothschild, Unterberg, Towbin. A member of the New Jersey and New York Bars, he has written numerous articles for The Wall Street Journal, Barron’s, Foreign Affairs and other renowned financial publications. He frequently lectures on fund of fund investment strategies at industry conferences.

Marty is a member of the Board of Trustees of Brandeis University and the Board of Overseers for the Brandeis International Business School, and served as Chairman of the University’s Investment Committee. He is the Chairman of the Washington Institute for Near East Policy, a member of The Council on Foreign Relations, and he serves on the Board of Trustees of the New York Historical Society. Marty served on the Committee on Research Libraries of the New York Public Library where he established, and continues to endow, the Martin J. Gross Collection of Voltaire, one of the world’s most important collections of the great writer’s works, as well as on the Dean’s Council of New York University Law School.

Marty earned his BA, Summa Cum Laude, from Brandeis University in 1972. He received a BA and MA from Brasenose College, Oxford University in 1974, and then went on to earn a JD from The University of Chicago Law School in 1977. Subsequently, Marty studied at New York University Law School, where he earned an LLM 1981.

Joan L. Larson*
Managing Director, Head of Manager Research
jll@sandalwoodsecurities.com

Joan L. Larson
Managing Director, Head of Manager Research

A member of Sandalwood’s investment team since 2001, Joan leads the firm’s manager research group. She is responsible for sourcing new managers, conducting manager due diligence for potential allocations, and monitoring the investments and relationships with existing fund managers. Joan is a member of the Investment Committee as well as a member of Sandalwood’s senior management team.

Earlier in her career, she served as a portfolio manager at a number of Wall Street firms including Merrill Lynch, Lehman Brothers, Kidder Peabody, and Citigroup/Salomon Brothers. Joan also has experience as a corporate director having managed assets for more than 10 years for Nationwide Circuit Products, Inc., a closely held private business where she was responsible for corporate and pension fund asset management.

Joan is a Trustee of The Washington Institute for Near East Policy and is active in The Manhattan Institute for Policy Research. She also serves on the Board of Directors at The Eye-Bank for Sight Restoration, Inc.

Joan received a BA degree in French from Douglass College/Rutgers University in 1976, where she was elected to Phi Beta Kappa. She received her master’s degree in International Management from the American Graduate School of International Management in Glendale, Arizona in 1977.

Kenneth M. Chapple, CPA*
Managing Director, CFO, Operational Due Diligence Director
kmc@sandalwoodsecurities.com

Kenneth M. Chapple, CPA
Managing Director, CFO, Operational Due Diligence Director

As Sandalwood’s Chief Financial Officer since 2006, Ken oversees all financial aspects of Sandalwood’s funds.  He is also Head of Operational Due Diligence. In this capacity, Ken is the only member of the Investment Committee that has an absolute veto due to operational factors. In addition to supervising the firm’s operational due diligence, Ken works very closely with the manager research team to provide an additional layer of scrutiny. He is also a member of Sandalwood’s senior management team.

Ken began his career with PricewaterhouseCoopers where his exclusive focus was on audits and agreed-upon procedures for hedge funds.  Prior to his departure in 2001, he was the senior in-charge of one of the largest hedge fund clients of PwC with an AUM exceeding $7 billion. The majority of Ken’s engagements were hedge funds specializing in distressed debt investing. The experience gave him exposure to a variety of products used among distressed managers, and a large portion of his audits were dedicated to the infrastructure and internal controls of these hedge funds.

In the fall of 2001, Ken joined Appaloosa Management, LP as Controller. In this position he performed much of the accounting and tax functions for funds under the firm’s purview, gaining experience with a number of exotic financial instruments, and the accounting and tax implications particular to them.  In particular, Ken has significant experience with the settlement of and accounting treatment of credit default swaps, bank debt (both Par and Distressed), total return swaps, CFD’s, trade claims and other financial instruments.

In 2005, he was named Chief Financial Officer of Loxias Fund Management, LLC, a startup distressed hedge fund that liquidated later that same year. Ken went on to serve as a Client Services Manager/Director at Bisys-RK Alternative Investment Services, Inc.

Ken graduated Magna Cum Laude with a BS in Accounting from the University of Scranton in 1998.  He also studied at the University of Queensland, Brisbane, Australia with a focus on International Business. Ken is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants (AICPA).

Eric C. Taubenheim*
Managing Director, Manager Research
ect@sandalwoodsecurities.com

Eric C. Taubenheim
Managing Director, Manager Research

Eric joined Sandalwood’s investment team in 2017, where he focuses on investment strategy and markets research, manager selection, and ongoing investment due diligence.

Eric was previously with Pine Grove / Man FRM for six years, where he focused on Credit, Event, and Long/Short strategies in a senior research function, initially as a Partner and Managing Director on the Pine Grove investment team (acquired by Man in 2014). Prior  to that he spent six years as a Senior Research Analyst with Susquehanna International Group in several roles focused on fundamental strategies.  Eric began his career in the Goldman Sachs Analyst Program (Credit). He spent almost seven years at Goldman in New York and London, most recently serving as a Vice President in High Yield Research covering the Wireless and Entertainment sectors.

Eric earned a BA in English from Trinity College in 1991.

Rick Stockton
Managing Director, Investor Relations/Marketing
rs@sandalwoodsecurities.com

Rick Stockton
Managing Director, Investor Relations/Marketing

Rick Stockton is the Director of Marketing at Sandalwood Securities, and is responsible for sourcing, cultivating and managing new relationships and distributing the firm’s multi-manager investment offerings. Prior to Sandalwood, Mr. Stockton was Managing Director of Investor Relations at a privately owned Registered Investment Advisor in New York City where he spent the previous six years. Mr. Stockton worked with high net worth individuals, family offices, and institutions from both an allocation and an investment management perspective across all asset classes.

Prior to that, he was a Director in the Private Wealth Management division of Deutsche Bank, where he worked for eight years, culminating as a Relationship Manager where he was the point person for high net worth and institutional Private Banking and Investment Management relationships. Prior to Deutsche Bank, he worked in the Private Bank at UBS, and he began his career at the Investor Relations firm of Abernathy MacGregor.

Rick earned a B.A. in History at Trinity College in Hartford, CT in 1991.

Thomas R. Oswald*
Managing Director, Compliance Director
tro@sandalwoodsecurities.com

Thomas R. Oswald
Managing Director, Compliance

Mr. Oswald is the Chief Compliance Officer for Sandalwood. Mr. Oswald has 40 years of experience managing assets for high net worth individuals. He began his career as a Certified Public Accountant with Coopers and Lybrand in 1962 concentrating in stock brokerage, mutual funds, and other financial institutions. In 1968, he became a partner in a New York Stock Exchange broker/dealer specializing in institutional sales, underwriting, and private placements.

In 1970, he joined Train Cabot Counsel and Accounting Management Company, a full-service financial institution providing investment advice, broker/dealer, and tax and accounting services for high net worth individuals and families. In his role as President of Accounting Management Company he worked with clients to develop overall financial and tax strategies including a review of asset allocation and the selection of appropriate portfolio managers. He was also responsible for their broker dealer and investment advisor compliance.

Mr. Oswald received his B.S. in business from St. Peter’s College in 1962.

Laura R. Moore
Senior Vice President, Director of Marketing
lm@sandalwoodsecurities.com

Laura R. Moore
Senior Vice President, Director of Marketing

Laura joined Sandalwood in 2016 as Senior Vice President, Director of Marketing responsible for marketing Sandalwood’s multi-manager investment offerings to high net worth individuals, family offices, and institutions. Her career in finance has spanned over 35 years with a focus on global trading of futures and alternative investments. She began her career in the early 1980’s as a trader of soft commodities in Brazil hedging for clients. She is fluent in Portuguese. Returning to the US in the mid 80’s she continued to trade commodities and financial futures building a team of 15 people based in the US and London. This team was among the top producers at Dean Witter. Laura was the first woman appointed to the Dean Witter Chairman’s club. Her career path changed in the 90’s when she began trading for hedge funds and was involved in relationship management for 4 multi-billion hedge funds. The past 5 years she has been the Director of Capital Introductions for Societe Generale Corporate and Investment Banking (FKA Newedge). Laura worked with a team of 150 prime brokerage professionals globally to increase the group’s trading/clearing profits, brand awareness and relationships with institutional hedge fund allocators. She advised hedge fund clients on key features of asset-raising strategies, including target market sector/region, fund and fee structure offerings, IR staffing, seed opportunities, and market trends. Her team produced educational events and customized road shows to highlight manager capabilities to investors.

Laura earned a BA in Political Science and Mass Communication from Denver University in 1979.

Laura carries her series 3, 7 and 63 licenses. Laura is involved with a number of philanthropic endeavors focused on animals, health and education.

Stephanie M. Salen, CPA
Operational Due Diligence Manager
ss@sandalwoodsecurities.com

Stephanie M. Salen, CPA
Operational Due Diligence Manager

Stephanie joined Sandalwood’s Fund Accounting group in May 2010. As Operational Due Diligence Manager she is responsible for initial operational due diligence evaluations of potential managers and ongoing monitoring and risk assessment of existing invested managers. Stephanie also works closely with the CFO to develop and enhance operational procedures, process work flows, and the infrastructure of accounting functions for the firm.

Prior to Sandalwood, Stephanie was a Senior Accountant at Rotenberg Meril Solomon Bertiger and Guttilla, P.C. (RMSBG) where she worked on the audit for RMSBG’s largest fund of hedge funds client with $8.5B in assets under management. Previously, Stephanie was a Fund Accountant at UBP Asset Management where she performed the monthly accounting functions for multiple fund of hedge funds and assisted in the NAV approval process. She regularly analyzed fees and projected quarterly expenses while working closely with fund administrators. Additionally, Stephanie worked with a team of fund accountants on special projects related to financial statement production and FASB 157 compliance of investment managers. Stephanie began her career at Rothstein Kass and Company, where she was a Senior Associate focusing on audits and agreed-upon procedures for hedge funds. She specialized in master feeder structures with expertise in several investment strategies including global macro, multi-strategy, emerging markets, fixed income, and hard money lending.

Stephanie received a BS in Accounting from Montclair State University in 2006. She is a Certified Public Accountant in the State of New Jersey and a member of the American Institute of Certified Public Accountants (AICPA).

Maggie Bernier
Fund Controller

Maggie’s responsibilities include all aspects of fund administration such as monthly fund valuation and NAV verification and reconciliation with administrator. In addition, she prepares audited financial statements and is involved in daily cash management. She regularly performs various statistical and quantitative analysis including peer group analysis, relative performance analyses as well as compilation and analysis of risk/return profiles for Sandalwood funds and managers.

She began her career at AXA Financial working in customer relations. Before joining Sandalwood in 2004, Maggie managed a reconciliation team at Mellon Financial where she performed a wide array of accounting and reconciliation duties.

Maggie received a BS in Mathematics from Manhattan College in 1997.

Dana Colon
Research Assistant

Dana joined Sandalwood in May 2008. As Research Assistant her responsibilities include administrative coordination of new hedge fund managers, monitoring existing relationships, preparing fund subscriptions and redemptions, and ensuring proper documentation for time-sensitive tracking and transactions.

Dana’s professional career spans 35 years with a concentration in senior project management. She received a BS from the University of Delaware in 1983.

Nicole M. Fresolone
Fund Controller

Nicole joined Sandalwood’s Fund Accounting Group in January 2012. As Fund Controller, she oversees the accounting of Sandalwood’s funds, which includes reviewing the monthly NAV, financial statements, and allocations. She works closely with the CFO to develop, enhance and improve fund accounting procedures and workflows. Nicole acts as a liaison between Sandalwood’s Fund Accounting and Investor Services teams.

Nicole began her career at Sandalwood in 2012 as a Fund Accountant. In this capacity, she assisted in all aspects of fund accounting and NAV preparation.

Nicole received a BS in Accounting from Montclair State University in 2011.

Vichi Hung
Investor Administration
vh@sandalwoodsecurities.com

Vichi Hung
Investor Administration

Vichi Hung joined Sandalwood in 2003 and is in charge of investor administration. Her responsibilities include communication and correspondence with investors, third party advisors, and various offshore administrators and custodians. She oversees and coordinates transfers, redemptions and subscriptions and ensures prompt and proper documentation and funding.

Vichi has been in financial services for almost 20 years, beginning her career at NorCrown Bank as customer service representative in 1998. Within several months she transferred to the accounting department where she was responsible for account reconciliations and wire transfers. In this capacity she serviced Sandalwood accounts. She was then promoted to ATM Manager and was responsible for overseeing installation of automated teller machines, reconciliation of daily transactions related to electronic funds and fraudulent electronic transactions.

*Investment Committee Member