I am really confused about S&T. I hear that S&T is a dying business but then in the news your hear about these traders from major investment banks constantly getting jobs at hedgefunds and starting their own. Also, it seems like most hedge fund managers weren't investment bankers at anyfime in their career. Its seems like most were some type of trader. Can someone elaborate on this. Should I go into S&T, or will I-banking be more helpful in getting to a hedgefund?
| +27 | Risk VS Volatility | 6 | 20h | |
| +24 | Undergrad HF Internships? | 31 | 15h | |
| +19 | Are distressed HFs still viable? | 12 | 1d | |
| +19 | How is PnL calculated for purposes of determining a portfolio manager's bonus? | 7 | 1h | |
| +18 | Advice - IB to Investing (Regret?) | 4 | 1d | |
| +17 | Does cfa matter? | 5 | 2d | |
| +16 | Road to Working at a Hedge Fund? | 14 | 5d | |
| +15 | Credit comps | 9 | 3d | |
| +14 | Best path from Infra PE in Asia to HF in London or US (MBA in US?LBS MiF?) | 8 | 1d | |
| +13 | List of large SMs that still have a longer term investment horizon? | 13 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
A few things: a) Subsectors within finance have internal cycles. Some dynamics of trading may never come back to the way they were in 2007, due to technology/market evolution and regulation, but other elements could still see improvement-if banks re-allocate balance sheets to bond trading, for example.
b) Most of the hedge funds being founded by "traders" are being founded by proprietary ("prop") traders who take directional positions with the bank's capital. The strategies these types of traders use varies a lot but in general they have more in common with a buyside PM or analyst than regular flow/market-making traders.
c) Non-prop (aka execution or flow) traders regularly go to hedge funds. However, the role of a trader at a given hedge fund (or a given trader within a hedge fund) can vary a lot from pure execution to having fairly free reign on taking risk/putting on trading positions.
Also consider this. The traders you're reading about going to hedge funds today started their careers 10 years ago when sell side trading was still a good place to be (more freedom to take prop risk). Doesn't mean if you go into sell side trading today you'll likewise follow the path to a hedge fund in 10 years. Lots of people seem to make this mistake, I don't know why. Skate to where the puck is going to be, not where it was 10 years ago. The "path" has largely been wrecked.
Temporibus et numquam corporis deserunt itaque. Rerum assumenda voluptatibus dicta voluptatibus magni. Pariatur dolorem tempore quis consequatur deserunt minima perspiciatis.
Est voluptates ratione earum assumenda eos ut. Et aut error omnis atque mollitia occaecati.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...