Anyone investing in gun companies may soon be in the line of fire.
That's the view of Ryan Morris, president of hedge fund Meson Capital. In a note recently posted on SumZero, a private network for "buy side" analysts at hedge funds, Morris argues that gun sales are bound to return to historic levels after recently surging. He said that the increase in gun sales in the last couple of years was driven mostly by fears of tighter gun laws and that demand will be much lower in the long run.
One company that looks especially vulnerable: Smith & Wesson Holdings. The company's stock surged from about $3 in late 2011 to $16 earlier this year as sales soared and the company booked record profits.