MultiStrat PM to Sellside Market Maker
I posted this in the trading forum as well but didn't get many replies. Hopefully more people see it here.
I'm a PM at a multistrat running an equity/FX/Commodity volatility strategy (primarily equities). To keep it brief, I find the PM job very stressful and I'm looking to start a family soon. I think being a stressed out/anxious PM with young children and a wife is not a good idea. It's difficult not to bring your work home - ruining the family life - and it's hard to plan your future with job security so poor.
I posted another thread a week or two ago and one of the responses recommended I try market making on the sellside as a good way to have a more balanced work-life. I wanted to ask those who have made this transition some questions:
1) Is it difficult to make the move to the sellside if you previously haven't worked as a market maker? I think for FX/Equities volatility trading, the skillset and methodology should be pretty similar between sellside/buyside. If there is a big difference, is it difficult to learn on the job?
2) How did you market yourself to get the role? Many sellside market makers are able to successfully market themselves to the buyside but I haven't heard how one goes in the opposite direction
3) Is experienced sellside recruiting mainly through headhunters or is there another predominant avenue?
Thank you very much for all your kind replies.
Based on the most helpful WSO content, transitioning from a MultiStrat PM role to a sell-side market maker can be a significant career shift, but it's not unheard of. Here are some insights that might help:
1) Skillset Transferability: The skillset from a PM role, especially in equity/FX/Commodity volatility trading, does have some overlap with sell-side market making. While the core competencies in risk management, market analysis, and trading strategies can be similar, the sell-side role involves more client interaction and a focus on providing liquidity. Learning on the job is expected, but having a strong foundation in trading will be beneficial.
2) Marketing Yourself: To market yourself for a sell-side market maker role, emphasize your trading experience, risk management skills, and understanding of market dynamics. Highlight any client-facing experience you have, as well as your ability to make quick decisions and manage multiple positions effectively. Tailoring your resume and networking to showcase these skills can help make a compelling case for your transition.
3) Recruitment Channels: Sell-side roles are often filled through a combination of headhunters, internal referrals, and networking. It's important to leverage your professional network, reach out to contacts within the industry, and possibly connect with recruiters who specialize in sell-side trading roles.
Remember, while the work-life balance may be more favorable on the sell-side, it's still crucial to manage expectations as market-making can also be demanding. It's wise to thoroughly research and network within the field to understand the nuances of the role before making the switch.
Sources: I was in Equities Research for 10 years in Asia – Ask Me Anything, Sell Side Trading vs Buy Side Execution, Q&A: From State School to IBD to MM PE, What would you like to know about Equity Sales / Research?, I'm a Senior Sell-Side Research Associate, Q&A
I think you have a grass is greener syndrome going on. MMHF jobs have higher firing risk yes but no one will pay you any amount of money anywhere if your pnl is negative. And there’s a good chance it might be “negative” since bank desks have higher hurdles and you’ll need to put on positions that you believe have negative or 0 expected return in order to keep deal flow going with your top clients. You don’t have experience doing this and it’s impossible to say how it might turn out for you. Also in terms of stress: Instead of a world where you’re up at 3am monitoring Hong Kong markets you trade it for a world where you’re stressed out at 8pm because a major client is thinking about backing out of a structured products deal your team has spent an entire month modeling. Your stress will be exactly the same in both jobs just different and with probably less pay and longer hours too.
my suggestion go work for a company like 2s or worldquant. You can make $500k/year with no pnl linkage and normal office hours.
The quant roles are strictly CS/Math/Tech related? What background do they typically look for?
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