City of Fitchburg (Mass.) Retirement System picked Dreyfus, Gabelli, Wachovia and Systematic as finalists in its search for a domestic small-cap manager. The $65 million fund recently adopted a new asset allocation with a 5% domestic small-cap stock allocation. The fund will decide at its next board meeting in mid-June, said Kevin Leonard, the Segal Advisors consultant who is assisting. Funding will come from Family Bank, the funds existing balanced manager.