In one case, their confidence comes from familiarity. They use the analytic products of FactSet Research Systems (FDS) every day because -- after trying Bloomberg and Thomson Reuters -- they consider them the best for traditional long-only asset managers. The company aggregates information from various vendors, but makes it easy to merge it all with other portfolio applications, says Weber. He isn't concerned that brokers and marginal hedge funds may disappear. They aren't FactSet's core customer, Wallis says, pointing out that the main clients are money managers like themselves who can cut costs by consolidating with one provider. The small-cap fund started buying FDS at 37.76; it recently traded at 38.94. Wall Street pegs profit at $2.81 for fiscal '09 and $3.04 in '10.

Micros Systems (MCRS) is another longer-term opportunity with end markets -- hotels and restaurants -- that are under pressure. They bought the stock at 18.90, and it recently traded at 16.10. The Columbia, Md.-based software maker provides point-of-sale software applications for restaurants and hotels to manage inventory and sales. Wallis estimates the company has only a 30% penetration rate of its existing clients' outlets and also has an opportunity to move more aggressively into the quick-service restaurants. Hotels may present an even bigger market. By increasing market share, the company could have earnings of $1.33 in fiscal 2010 (June) and $1.51 in 2011.

One company well positioned to take advantage of the coming efficiency drive in health care is LHC Group (LHCG). The Lafayette, La.-based home-health-care provider focuses on rural areas. Wallis says, "Visiting nurses are a cost-effective way to deliver patient care and improve outcomes, because it is cheaper than having a hospital provide the care." At 20.50, the stock is just below where they started to accumulate it, at 20.65, due to concerns that Medicare reimbursements may not continue rising in light of federal-budget constraints. But Wallis argues that a large consolidator such as LHC should gain market share if smaller operations go out of business. Earnings are expected to come in at $1.56 for '08 and $1.99 in '09.

With a nod to these dark days, they also like First Cash Financial Services (FCFS), a pawnshop chain and payday-lender from Arlington, Texas. They began buying it at 15.96; it was recently trading at 14.12. Regulators have been cracking down on payday-lending practices, causing investors to pull back. However, Wallis expects that aspect of First Cash's business to be "almost immaterial." Instead, First Cash is expanding its Mexican pawnshop business. Earnings are expected to climb to $1.37 in '09 before hitting $1.54 in '10.