"We recognize the seriousness (of the coronavirus concerns), and we would never celebrate a sell off of this magnitude," she said. "But this dislocation provides active managers a great opportunity."
The S&P 500 fell for the seventh straight day on Friday and the benchmark index suffered its biggest weekly drop since the 2008 global financial crisis on growing fears the fast-spreading coronavirus could lead to a recession, although stocks cut losses at the end of the day's session.
Koch said the firm's clients have largely remained sanguine throughout the selloff, deploying more cash this week into the bank's active management portfolios.
"We have not seen great outflows from our clients. We have seen higher engagement- more people calling and asking questions. This week we are going to end up in pretty strong net inflows into our active portfolios from clients globally," she said. The firm's purchase of shares of Shiseido is a bet that demand from Chinese consumers for the high-end brand will continue after the outbreak passes, Koch said.
The investments in shares of hotel and cruise companies reflect expectations that millennial spending on travel over the long run will trump the short-term hit the sector is experiencing due to coronavirus fears, she said.