Bubble or not, it's a stock-pickers market: Hedge funds

Jacob Gottlieb of Visium
David Grogan | CNBC

Hedge fund managers say there's still plenty of money yet to be made in the stock market—it's just a matter of picking the right companies.

"We believe almost every sector has some alpha opportunity," Jacob Gottlieb, chief investment officer at $6.5 billion hedge fund firm Visium Asset Management, said Wednesday at the Absolute Return Symposium in New York City. "Alpha" refers to an investment manager's return above the market index, presumably from skill.

Gottlieb said that the declining correlation between stock prices will help investors find winners and losers. "That's a good stock-pickers market," he said.

Examples of sectors Visium is hunting for appreciation in stock prices— "long" bets—include healthcare, mobile technology, industrials, Internet retail and consumer companies such as Jarden and Nike.

Conversely, Gottlieb said that utilities and telecommunications stocks would likely be hurt as interest rates rise because of their bond-like dividend payments.

Another hedge fund manager, Aaron Cowen a veteran of Soros Fund Management and now head of Suvretta Capital Management, also mentioned retail stock-picking opportunities.