Despite a lackluster back-to-school shopping season and a string of slashed outlooks from across all corners of retail, investors can still make money if they are selective, according a five-star Fidelity fund manager.
"The consumer is being picky, so as an investor we need to be picky as well," said Fidelity's Peter Dixon, "and there are clear winners and losers."
Earlier this year it was easy to find winners in retail.
Despite the consumer headwinds of higher taxes and stagnant wages retail had been among this year's hottest trades — with the sector up nearly 25 percent through June, far outpacing returns of the broader market. But, in August the retail rally hit the brakes as several key players, such as Wal-Mart and Macy's, missed on second-quarter earnings and slashed their full-year forecasts.
(Read more: Don't fight stock market's momentum: Mike Murphy)
On CNBC's "Fast Money," Dixon insisted that there are great opportunities to make money despite the recent bad sentiment.