In an exclusive interview with Business Insider, Cleaver said the outbreak is driving a shift that's likely to benefit one of the fund's investments in China. He says"It's China's largest online healthcare platform and they have a strong moat associated with the business," he said.
"It was already demonstrating strong growth, and they have a considerable lead in this space with about 50% market share," he said.Cleaver, who manages the EM Growth Fund alongside lead portfolio manager Howard Schwab and co-manager Richard Thies, adds that he's been encouraged by the Chinese government's efforts to prop up the economy in the two months following the start of the outbreak. He thinks those will eventually pay off.
"We are encouraged by the response of monetary policy through liquidity injections in China, additional policy support through things like tax waivers and subsidies," he said. "We're watching for when people go back to work and activity levels improve. We'd expect to see pent-up demand start to be realized."
Specifically, Cleaver says he expects growth in infrastructure spending once the outbreak subsides, and expects to look at makers of machinery and cement, among others. Elsewhere he'll search for companies whose earnings potential has been written off during the epidemic. "In times of market stress like this, we're looking for these recovery growth opportunities and carefully identifying these types of situations as they may present themselves," he said.
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