Those would be Dick's Sporting Goods, Tractor Supply Co., Dollar General, and Amazon.com.
His four picks have two things in common: opportunity for long-term growth and good business execution.
For instance, Dick's and Dollar General are "managing the margins well," said Hemauer, whose fund has a four-star rating from Morningstar. "While they’re not dependent on the fourth quarter as a retail play, we think those are the kinds of businesses that can work through this environment and be long-term, good stocks."
Tractor Supply , meanwhile, has managed to carve out a profitable niche — retail farm and ranch — that really has no competition.
"They've done a nice job of executing," Hemauer said, and have a "runway for growth" from increasing store expansion.
As for Amazon , which has already warned investors it doesn't expect to make a lot of money from its Kindle Fireanytime soon, Hemauer acknowledged, "They've clearly given investors cause for patience."
From a retail standpoint, however, the Fire is "attractively priced" and will be a way of directing consumers to other Amazon products. That's why "our view is over time is the broad growth of that company is very attractive," he said.
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Disclosure information was not available for Ken Hemauer or his company.