Fundamental Analysis Prop Desk?
Do most BB shops have proprietary trading desks that focus on fundamental analysis ("FA") or traditional stockpicking in their S&T divisions? Is this the same as a long/short equity desk?
Is the progression towards obtaining a seat at one of these FA prop desks the same as obtaining a spot at any other prop desk? (i.e. - Working as a regular flow trader until you get plucked for the prop desk.) Or is there some other progression for this type of desk such as working as a research analyst?
there are no Prop desks that use fundamental analysis. it is too "buy and hold" for an S&T prop desk. asset management divisions would have a fundamental analysis area.
You're an idiot, and an opinionated one at that.
My friend who's going to Goldman SSG is going onto a middle-market PE desk where they but together buyouts. I don't really understand how it works, but that's what he's going to be doing at least based on what he's been told.
Thanks for the responses thus far.
I originally had the same opinion that Closer 121 had since S&T tends to be weak on salary and heavy on bonuses, it would seem that it would be a little rough to have a prop trading desk that focused on long-term fundamentals. However, what little research I could dig up on FA prop desks seemed to indicate that they seem to exist. (Though I'm uncertain if they exist under the S&T division or the IM division, as you say.)
Warhawk_1, I'm aware that Goldman Sachs seems to have both an SSG and a Principal Strategies group that look as if they focus primarily on fundamental analysis, but do you know if either of these groups focuses on fundamental analysis of publicly traded companies as opposed to private companies?
FInally, John Mack, which BB shops have prop desks and would you happen to know what they're called? I doubt they're called FA prop desks as I've conveniently labeled them. Are they different from just long/short equity desks?
Also, does anyone know the general path to landing a spot at one of these desks?
They start out public and end up private. If it's publicly traded the whole time, I have no idea.
All the BB have prop desks, although their balance sheets will have been reigned in of late.
Prop desks are rarely known to the outside world as "Prop desks" - they have professional sounding names to make it more palatable that they are competing with their customers. eg "Equity Strategies Group", "Alpha Generation", etc.
Of all the props guys that I used to speak to, only one had gone straight into there as a fresh grad (that's not to say there weren't more - just that I never spoke to them). The general paths seem to be internally from sales/trading or from the buyside.
Pop quiz: What do you think are the advantages and disadvantages to a job on a prop desk to an equivalent on in a hedge fund?
good one john mack.
Paths to these desks are varied and would include from buyside and from associate level in equity research.
Lehman Fundamental Long/Short Equity Prop Desk (Originally Posted: 02/28/2007)
Can anyone provide information on this desk? Culture and just general information on trading strategies and what its like to work on a desk like this
thanks
what is your background? right out of college or MBA?
Yeah, I would like to know that as well. Does it have a Technical Long/Short Equity Prop division? lol
i have a meeting set up with the desk sometime in april and wanted to hear more about it before the meeting
thanks
Only thing I know about Lehman's trading in general is that they pride themselves on client services as their main form of business and prop is just icing on the cake for them.
I don't know what that tells you in terms of the desk. Sorry, not much help.
Fundamental Research at a Prop Trading Firm. Good Start? (Originally Posted: 01/26/2015)
What are the prospectives for starting out doing fundamental research at a top prop trading shop? It seems you are trained to take a much more short term view on your research, so I am curious as to whether this is a good foundation to move to a HF/AM shop down the road. Is the skill set transferable to any other industries? There isn't much on this role out there.
It's probably not great if you are looking at AM down the road but for HF (unless it's deep value), you will surprised how many of them operate with a short-term mindset.
Of course, if the prop firm ask you to produce ideas only with one to three day time frame, I would run. But if they run their books by holding positions multi-weeks, then, ya I would say that's no different than lot of funds out there.
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