John Dorfman, manager of the Dorfman Value Fund, says that many industries are "misperceived" and that they have become great buys. Dorfman noted that drug-company stocks are selling at similar multiples to tobacco stocks, "and the last time I looked, tobacco stocks didn't save people's lives." After five years of being sold hard, Dorfman likes the look of pharmaceutical stocks, and he also is interested in metals and energy stocks because they soared early in the year and have now been hammered to bargain levels.

Hedge-fund manager Leon Cooperman said Tuesday that most of the damage from the credit crisis has already been inflicted on the stock market. Cooperman, the manager Omega Advisors Inc. who's been trading for more than 40 years, said the current financial markets are the most difficult he's ever seen. Still, he said, signs of a bottom in the equity market are beginning to form.  "The bulk of the damage is done," Cooperman said during a speech at the Value Investing Congress in New York.

Many investors think a seat in the bleachers is the only way to watch NASCAR racing, but a TV or radio is just fine for enjoying the popular American sport -- and possibly for boosting the stock price of race track operator International Speedway Corp. It's a classic page out of the playbook of value investors, something that comes naturally to de Vaulx and de Lardemelle, who worked for years under one of the best: Jean-Marie Eveillard.

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Hedge fund Pershing Square Capital Management LP's outspoken manager William Ackman, who has made headlines over the past year for his short positions (namely the financial services sector), took aim at the $700 billion bailout bill and Securities and Exchange Commission's short selling ban at the 4th Annual New York Value Investing Congress on Monday.

Morgan Housel down recently with famed value investor Mohnish Pabrai and got a chance to pick his brain on everything from the short-selling ban to his recent lunch with Warren Buffett. Morgan Housel shares Pabrai's thoughts on the recent market turmoil, and how he's looking for bargain investments during these tumultuous times.

Here's what he had to say.

Mark Sellers III's hedge-fund career peaked this summer about the time he turned 40. Then it cratered. Mr. Sellers, who once managed close to $300 million, is shutting his Chicago-based firm and retiring, at least until his distaste for the pressures of managing other people's money subsides.

"What I've learned about the hedge-fund business is that I hate it," says Mr. Sellers, a former stock analyst with Morningstar. "I have enough money that I don't have to work, and why should I put myself under that much stress?"

Fairfax Financial Holdings Ltd., like Campbell's Soup, has defied the stock market carnage as Wall Street and the global financial system melts down. Fairfax has defied gravity because the property and casualty insurance company, led by its Chair Prem Watsa, realized a few years ago this perfect financial storm was about to hit. So it positioned its gigantic portfolio of  premium income and profits to not only withstand the storm, but benefit from it.

Maverick Capital Ltd., Greenlight Capital LLC and The Children's Investment Fund Management LLP fell more than 12 percent in September as stock hedge funds posted record monthly losses and braced for client defections.  Lee Ainslie's Maverick Capital declined 19.5 percent and Greenlight Capital, run by David Einhorn, was down 12.8 percent, according to investors in the New York-based funds. Children's Investment, overseen by Chris Hohn in London, fell 15 percent, based on a preliminary estimate.

Traditional value managers Stephen Arpin and Mark Thomson, partners at Toronto-based Beutel Goodman & Co. Ltd., are establishing new holdings or adding to key positions in sectors that have come under pressure in the market weakness -- consumer discretionary, telecommunications and financial services.

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