No more retail "nirvana," David Berman, founder of Durban Capital, which manages over 100 million in assets told CNBC today.
Berman has focused solely on retail for some time. This past spring he changed his opinion and downgraded the retail sector for several reasons.
First, "WalMart is back to being Walmart," the hedge fund manager said. The company represents 23 percent of all sales from publicly traded retail companies.
With this enormous stronghold, "this is not good for the supermarket chains or for discounters now that WalMart is back to being more price competitive," he said. Take J.C. Penney and Kohl’s for example, they may get hurt because Walmart does have some apparel.
Second, if you look at the math in the retail sector in general—home improvement, discounters, apparel retailers, supermarkets, and department stores—"this sector could turn negative come September," Berman said, adding, "people are worried about. "