Einhorn, head of Greenlight Capital, was the headliner, because he caused a big stir at last year's conference when he detailed his bearishness on Lehman Brothers based on the overvaluation of real-estate assets. That bearishness turned out to be right on the money. Einhorn said he's bearish now on Moody 's (MCO) because the credit-ratings agency has a "shattered brand," and because even the firm's largest holder, Warren Buffett, doesn't rely on credit ratings.

Mandel, who runs Lone Pine Capital, observed that great franchises are valued cheaply now relative to "struggling" economically sensitive stocks that are in vogue as recovery plays. Mandel said Strayer (STRA), a leading for-profit education company, has great management and enormous growth potential. He conceded that the stock, at 25 times estimated earnings, isn't cheap, but that it "will be a far larger business 10 years from now."

Kingdon of Kingdon Capital Management likes Bank of America (BAC) because the stock, now around 11, trades for just five times what he considers its "normalized" earnings power of $2.25 a share in a more benign economic and financial environment. He said the stock could double in a year.

William Ackman of Pershing Square Capital Management made a case for General Growth Properties (GGWPQ), a big shopping-mall operator that filed for bankruptcy in April because of problems refinancing maturing debt. "This isn't your typical bankruptcy," Ackman said, asserting that General Growth could be the rare bankruptcy in which equity holders do well. He said General Growth's assets are worth more than its $28 billion in debt. The stock could ultimately be worth $10 to $30. Investors liked what they heard as the stock rose 49 cents to $1.80 Thursday and traded Friday above $2.00.

Kynikos Associates' Jim Chanos, a short seller, said he is bearish on education stocks and a whole group of industries, including drugs and defense, that depend heavily on government payments. "The new sheriff in town," Barack Obama, isn't inclined to tolerate outsized profit margins for companies that get a lot of federal money, Chanos said. He is bearish on Lincare Holdings (LNCR), which provides home-oxygen services, saying the company, which depends on government reimbursements, could see "dramatic profit deterioration."

Joseph Healey, who runs HealthCor, a health-care hedge fund, recommended Valeant Pharmaceuticals International (VRX) and Hologic (HOLX), whose stocks could double, he asserted. Valeant has a promising epilepsy drug, and Hologic, a maker of mammography equipment, is "one of the only compelling new-product stories in medical technology." Hologic, he said, may become a takeover target for General Electric or Siemens.

Joseph Healey, who runs HealthCor, a health-care hedge fund, recommended Valeant Pharmaceuticals International (VRX) and Hologic (HOLX), whose stocks could double, he asserted. Valeant has a promising epilepsy drug, and Hologic, a maker of mammography equipment, is "one of the only compelling new-product stories in medical technology." Hologic, he said, may become a takeover target for General Electric or Siemens.

Lee Hobson of Highside Capital Management recommended Millicom International (MICC), calling it a great play on the booming market for wireless phones in the developing world. He said the company is valued cheaply for less than four times projected 2010 pretax cash flow and is growing rapidly.