On CNBC's "Halftime Report," Dixon explained what he looks for when picking stocks in the retail sector.
"My basic philoosophy is that I believe that stocks follow earnings, and I look for companies whose brands are growing in popularity with consumers," he said. "And I look for companies that are competing in categories I expect to grow the fastest. That's really where I'd start. That's really where I'd focus."
Dixon's top picks in his fund include H&M, TJX and Home Depot. His fund's largest holdings include Amazon.com, Priceline.com, Lowe's, O'Reilly Automotive, Ross Stores, AutoZone, L Brands and Dick's Sporting Goods.
"I think it's all about what brands are growing in popularity with consumers and what are consumers wanting to spend their money on," he said. "Wealthier consumers certainly have the money, but maybe some of them are a little bit skeptical of what's going on with the government or the stock market."
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"Low-income consumers, maybe they're not doing that well," he added, "but just a little bit better than they have been recently, and maybe there's an incremental dollar going to a product that hasn't been in the past."
— By CNBC's Bruno J. Navarro. Follow him on Twitter