As it turned out, the financial crisis of 2008 was one of the best things that happened to Michael T. Shannon of Westchester Capital Management, and his portfolio, the Merger Fund. During the crisis, the Merger Fund delivered negative, but near flat returns. In the months that followed, as the fund appeared in lists and searches of funds that had performed well during the crisis, the amount of funds under management increased from about $1.5 billion pre-crisis to now over $6 billion.
By investing strictly in merger arbitrage, the Merger Fund (co-managed with his partner Roy Behren) is able to remain mostly independent of the markets. For instance, the Merger Fund is particularly interested in the recently announced Danaher