Lateraling from top prop. shops to BB S&T and Hedge Funds

I wanted to see how common it is for people to lateral from top prop. shops (DRW/Susquehanna/Trillium/FNYS etc.) to the sales and trading divisions of Bulge Bracket banks and to hedge funds.

I'm sure if you are successful at one of the respected prop. shops mentioned above the banks will certainly want to hire you, as will the hedge funds.

Has anyone done it on this board? If so, how was your experience

 

"I'm sure if you are successful at one of the respected prop. shops mentioned above the banks will certainly want to hire you, as will the hedge funds."

I get the impression that if you are REALLY successful at a prop shop (as in, enough that a BB would want to hire you), then you probably wouldn't want to be trading at the BB banks to begin with. Although, if you still want to get out, you will have to work extra hard at networking. Either way, good luck with whatever you do.

 
Investor1:
Is it because of too much bureaucracy and office politics along with a lower percentage of P&L?

Those are some of the main reasons. Tetris is correct in saying that you're better off starting your own firm or fund.

But, you have to realize that it isn't as easy as that. You are unlikely to be THAT great of a trader after trading for a few years (not saying it's impossible, but it's very unlikely).

The reasons why people would prefer to work in S&T at a BB are because they generally offer better training, they offer a more stable compensation (higher salary than at the few prop shops that do give salaries), and they usually have better exit opportunities (through the large number of people you will be able to network with).

 

first of all buy-side and sell-side trading is very different. A "prop shop" is 99.99% of the time only buy-side. BB Banks are mostly sell-side- meaning the majority of the trading is market-making- or filling orders from clients such as hedge funds or prop shops and making money off bid-ask.

(Most BBs had their own "prop shops" to trade the firms money but all the major BBs except Goldman have said they are mostly shutting those ticking time bombs down after the 08 losses. These proprietary trading gigs at top BBs were/are the most prestigious BB jobs and usually their traders are much more sophisticated (PhD's) than at a prop shop.)

Now if one was very good at a prop shop, I could see them going on to a proper hedge fund (or starting their own). That might make more sense.

 

Why the hell would you want to go from being a "successful prop trader" to being a trader at a S&T BB? If you're really good, go on to start a fund/firm of your very own. Oh yeah, on your question about how long would it take for someone to be successful enough at a prop. shop to move to a hedge fund- there isn't a fixed number, it depends on luck/skill/and the product you're trading.


"I'm a fly Malcolm X, buy any jeans necessary."

 

So basically:

Being able to trade the firm's capital is >>>>>>> being a market-maker or filling client orders (hedge funds, prop shops etc.)

Why then do people continue to go into S&T at a BB, especially now that the BB proprietary trading desks are basically shut down due to the huge risks they took?

I must admit, getting 50% of your P&L at one of the reputed prop. shops (with salary) sounds like an awesome deal.

 
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