Dreman Rolls the Dice on the Credit Crisis

It's times like these, when Wall Street is littered with the bloodied remains of problematic companies, that David Dreman, one of the biggest contrarians in the mutual-fund industry, lives for. Amid the dregs, there are also battered companies with few if any problems. Dreman, the chairman and chief investment officer of Dreman Value Management, looks for cheap, down-and-out companies with low price-to-earnings ratios, then buys up the innocent victims and profits as they recover.

"There are major opportunities in a crisis," Dreman says. He notes that the current situation is "not a stock market crisis" but "a liquidity crisis that's affecting the stock market."

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