Hedge Funds

Absolute Return Symposium stock picks: Sunbelt banks, semiconductors and guns

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Managers picked their favorite longs and shorts in a best ideas session.

Managers of the largest hedge funds may be piling into large caps like AIG and Google, but the real alpha is in smaller, largely overlooked companies, according to hedge fund managers at the Absolute Return Symposium Thursday.

Four portfolio managers presented their best ideas during the session. Patrick Wolff of San Francisco-based $150 million Grandmaster Capital Management recommended going long hunting, fishing and outdoor gear retailer Cabela's because of its growing store base and competitive position; strong customer relationships; and valuable credit card program. The gun sales boost from fears of increased regulation under President Obama is another