i posted this on the trading forum..but just in case this is the better location - i am pasting here
I'm currently a rates market maker / prop trader at one of the large BB shops. For a few reasons, I'm considering one of the following 3 options
1) moving to a full prop shop (like First New York, Jane Street, SIG or breakwater )
2) taking a job at a hedge fund like Moore, Brevan, Paulson, Millenium, Graham, Prologue, Capula, Soros or the like (large macro funds with multi Bln AUM)
3) staring my own fund.
i've been trading for about 5 years on a BB market making desk, and am now consistently making money in my prop book, but scratching in my market making book. I'm a good trader but not a good customer guy. I see no advantage for me to stay at the BB market making gig....i view myself as a hedge fund sitting on a market making desk...and honestly...the market making that i do is mostly just a distraction from my prop trading. I've recently undergone a mgmt change and don't like the new manager so i'm looking for an exit. Also, i have views on markets (stocks, FX) that i cannot trade because they are not in the realm of my market making position...so that is a frustration.
I have less than 1mm personally, so starting a fund on my own will be difficult. My prop trading makes about 40% return on capital....but i won't get paid relative to that because i don't have a large capital base for my prop trading, and I'm really supposed to be making my money as the market maker for a large book that i manage. (i essentially prop trrade on the sly) Does anybody on here have any experienced advice on whether the hedge fund route is realistically an option? My gut says it should be...but because i'm not a great customer guy, i don't have contacts at any of the large hedge funds i mentioned. I trade with them as a market maker...but don't "know " them. I suppose I am a classic example of a quantitative trader who is not a great people person. I'm willing to trade my own money, but i'm looking to make the best economic decision possible given my position and trading experience / ability.
Any advice? Regarding #3, my main concern is raising capital. Since i'm not a great people person, i'm hesitant that i will be able to do this. If all i had to do was demonstrate trading profitability, i'd be fine...but i'm really bad at talking and shmoozing people.
anyway, feedback would be appreciated.
i don't recommend starting with your own capital. it's very very stressful having ur own skin in the game. even if u might be the best trader in the world, its really not worth the low probability of blowing up ur own money IMO.
go for #2. lots of funds trying to find places to put their cash, so now would be a good opportunity to start interviewing (find head hunters etc). make sure you prove that you can trade prop with low volatility(since hf's aren't the biggest fans of sellside bank traders). those fund typically keep you at a pretty tight stoploss, but well worth it rather than trading your own money.
as for #1.. you get pretty decent % payouts.. but u'll be managing a lot less money and there won't be as much room for growth. i think having a HF on ur resume beats out the propshops (esp if u want to start ur own fund in the future)
Why do you say that hedge funds arent big fans of well side traders?
Occaecati quidem ut labore in dolor minima dolor. Qui velit voluptatum voluptates eligendi. Rerum in et sed explicabo dicta distinctio.
Ullam laboriosam soluta magni qui. Nihil provident aperiam ut et ea voluptatibus et. Nostrum perspiciatis optio molestias. Porro molestias recusandae molestias quas sunt aut.
Recusandae eos corrupti assumenda et. Voluptas iusto rerum rerum numquam temporibus eum. Quia minus qui assumenda illo. Id tempora assumenda vero doloribus. Non voluptatem alias error. Aut et nulla voluptate velit dolorem a.
Sunt et nam modi placeat. Quibusdam suscipit suscipit distinctio illum aperiam. Beatae voluptas porro ipsum nesciunt quis rerum et.
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...