Stick with retail stocks: 5-star fund manager

Get selective with retailers: Top portfolio manager

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.

Debate It: Bull vs. bear on Apple

"From a category perspective, global fast fashion retailers, off-price and auto parts are our favorites right now. You do not see teen retailers or department stores in my holdings," said the fund manager, whose top holdings include TJX Companies and AutoZone.

(Read more: Asia's still cheap—for now: JPM strategist)

Dixon also owns Inditex which is the Spain-based parent company to the popular U.S. chain, Zara.

Take a look at Dixon's long-term track record and it becomes clear that his selective stock picking is paying off.

His Fidelity Select Retailing Fund (FSRPX), which consists of just 33 stocks, is the top-performing in its category over the last five and 10 years, according to Morningstar.

By CNBC's Katie Young. Follow her on Twitter: @katiecnbc.

Trader disclosure: On Sept. 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long AAPL; Jon Najarian is long FB; Jon Najarian is long MSFT; Jon Najarian is long LULU; Jon Najarian is long GRPN; Jon Najarian is long P; Jon Najarian is long ORLY; Jon Najarian is long SYK; Jon Najarian is long MGM; Jon Najarian is long WYNN; Jon Najarian is long MAR; Jon Najarian is long CERN; Jon Najarian is long COP; Jon Najarian is long FIO; Jon Najarian is long GPS; Brian Kelly is long oil; Brian Kelly is long T-Notes; Michael Murphy is long BAC; Michael Murphy is long AAPL; Michael Murphy is long F; Stephen Weiss is long M; Stephen Weiss is long QCOM; Stephen Weiss is long AAPL CALLS; Stephen Weiss is long AIG; Stephen Weiss is long C; Stephen Weiss is long BAC; Stephen Weiss is long SODA.