Retail sector investing, stock-picking advice from top-ranked manager - Business Insider

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The No. 3 fund manager of 2019 is betting big on a corner of the market he thinks can survive the retail apocalypse, regardless of outcome. Here are the 2 stocks he's using to take advantage.

In an exclusive interview with Business Insider, Reed said the rise of online retailers and the trends that are causing thousands of stores around the country to close are helping those two companies in some subtle ways.

That means that TJX and Ross can benefit and expand their profit margins as a result of Amazon and other rivals instead of seeing their prices drop and margins shrink.above all other attributes. That helped the Select Equity fund outperform the market during its turbulent phases in the last year, and Reed says it also explains why he believes so strongly in these discount retailers at a time investors are rapidly getting more optimistic about the economy.

The reason why revolves around the resilience he expects them to exhibit, even in the event of an industry-wide meltdown. Reed thinks both TJX and Ross can weather a storm of any severity, and are poised to outperform regardless of outcome.

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