So I've been in the trading industry for 6 years now. At some point in the future, I want to transition to prop (I have a strategy) and I'm not talking about Market Making. I'm talking about actually managing a discretionary book to generate alpha... like a portfolio manager.
Anyhow, we've all heard of Adam Guren, who used to work for FNY Securities and now he runs his own hedge fund. He came straight out of school and went to go play semi-pro soccer and joined FNYS afterward. He never worked on any trading desk at an investment bank or a large Asset Management for that matter. In one of his old interview, he said he trades based on intuition (as do I). I'm going to assume he knows when to buy or sell when the market is relatively cheap or expensive.
So does anyone know if he's all discretionary? In one of Glassdoor review for FNY, a guy wrote "You can't look over someone's shoulder every time and watch if a $60 stock moves 30 cents"... Not word for word but close to it. With that being, I assume FNY is a short term trading shop. At one point he made over $5MM in one year. That is over $20,000 a day, assuming there are 252 trading days a year. FNY is very risk adverse because they trade their own capital. So how could anyone who trade equities make that much in a single day, consistently?
Also Jennifer Han, hedge fund superstar that made arrow hawk, 18%. She had her own hedge fund but it went bust, but not because of a huge loss but due to a redemption. Prior, she worked for MS and BAML commodities desk... if I recall correctly. She got picked up by Millennium immediately after. Her strategy is on the basis of relative value on commodities.
So with that being said, investment banks doesn't teach you strategies, so how could she go into a fund and kill it? I assume this is a strategy she developed?