AXA IM Prime, the hedge fund platform recently acquired by BNP Paribas, has significantly expanded its exposure to Asia-focused hedge funds, now allocating up to 30% of its $5bn hedge fund portfolio to managers in the region, according to a report by Bloomberg.
The report cites AXA Prime’s Global Head of Hedge Funds Johann Ropers as confirming that once absent from its portfolios, Asia now represents a key driver of expected double-digit returns, as the firm shifts away from fixed income substitutes toward equity-like hedge fund strategies. The move comes as US institutions scale back from the region, creating space for newer entrants and bolder strategies.
AXA IM Prime made its first direct allocation to an Asia-based manager in 2020 and has since backed a growing roster of specialists, including managers focused on Chinese and Indian equities, Japanese activism, and convertible bond trading. The firm is also providing $100m in multi-year capital to emerging managers, including recently launched funds like Viridian Asset Management and Shinka Capital, according to sources.
The pivot to Asia is driven by rising interest rates, increased market dispersion, and the maturity of the region’s hedge fund talent pool. AXA IM Prime’s hedge fund allocations are now expected to deliver around 11% annually—transforming them into equity substitutes in a higher-rate environment.
Through partnerships such as one with Skyway Pacific, AXA IM Prime aims to support six to eight new Asia-based firms as part of its dedicated emerging managers programme, underscoring its long-term commitment to unlocking differentiated alpha in the region.
