Hello, everyone
I'm a Computer Science major with an Economics minor at the University of Michigan-Ann Arbor. I'm interested in computer science as well as finance, and I'm considering working in this field (right now, HF or VC, but it's too soon to be certain).
Will a CS major allow me to land jobs in finance?
I'm not sure about going straight to HF, but CompBanker went from Computer Science major to IB then PE. You might need to start in S&T and gain experience before going into a HF unless you have very good connections.
CompBanker Explains How He Broke into Banking: //www.wallstreetoasis.com/forums/how-i-got-into-banking
I have definitely seen it - but usually with people with advanced degrees.
Yes. I worked with two CS majors this summer from UMich Ann Arbor at a major hedge fund. One of them landed a full-time placement into HFT, although he was a true genius at writing optimal code in C++.
I think the HFT space is getting a bit trickier than it was two years ago and some inefficiency has been squeezed out of the market. I also think finance as a full-time employee is a lot more grinding than many CS majors think. Finance majors spend a lot of time fixing data and staring at numbers, even though they took some interesting business theory and finance courses in undergrad. And while coding is grinding, it doesn't get more grinding. The creative process is always there no matter what you are doing.
So if you are going into finance because you think finance is interesting, or because you think there is money in HFT, I'd be a little careful. If I had to do everything over again, I might have done a startup upon graduation.
Computer Science in Hedge Funds (Originally Posted: 07/03/2013)
I've read through a few posts recently about computer science being helpful in hedge funds, but it's always put along side trading. I know there are quant funds that trade based solely on computer algorithms and other things, but I'm more interested in "normal" funds (don't know much about HF, but funds like Paulson, etc.)
I just graduated HS and have been outlining prospective coursework lately and it increasingly appears helpful to have at least a CS minor.
Is it helpful to have a CS minor/programming experience in the aforementioned fund types?
If so, I know CS is not all about programming, so what topics in CS should I focus on?
And what languages should I learn and in what order (C++, Java, Python, Ruby, etc.)?
Bump
If you work for a large fund, they will have IT personnel to build the programs for the investment team. If you work for a smaller operation then there will be some opportunity to use your CS skills, but I doubt it would ever require the skills of CS major. It would be helpful to take maybe 1 or 2 basic CS classes and maybe a minor, but your time is better spent elsewhere. The extent of any "programming" you would do in an investment role might be using VBA, or some data/stat packages like SAS or Stata.
So, would a CS background help with that? Yes. Is it necessary? No. Should you spend an entire Major or Minor on CS? Not for what you are looking to do. Maybe take a class here and there, but if you learn the common-folk languages (anything that can be used with Microsoft...) then you'll be fine. Lean towards coursework in finance, math, stats, econ, etc. With a basic understanding of programming, some experience with VBA, and possibly Java you'll be golden.
Thanks! Exactly the answer I was looking for.
Just remembered this. Would Salman Khan, who was an HF analyst before creating Khan Academy, then be an "ideal" candidate on paper for a small HF (BS in mathematics, a BS in electrical engineering and computer science, as well as an MS in computer science, all from MIT and an MBA from HBS)?
hedge funds that want comp sci skills? (Originally Posted: 01/24/2008)
anyone know of any hedge funds where tech skills (e.g. programming) are the norm? not as a developer, but a trader who spends more time on quant work and programming trading/risk/analysis tools instead of the normal compartmentalization of trading-quant-software. I get the impression that de shaw and citadel are like this, and I've heard of jump trading in chicago where solid programming skills are required for traders. any other good firms out there where having a computer science background gives you an edge?
D.E. Shaw, Ren Tech, etc. any quat group at banks GSAM, etc. many many many choices
as for your comment I think it is only true within certain groups and doesn't characterize the whole firm.
this is not a hedge fund, but I know for a fact that Jane Street Capital also looks for programming skills in their hires.
Citadel
Being a tech guy at a hedge fund can be incredibly lucrative FYI.
I know of another large fund that was looking for a quantitative analyst. The listing specified comp sci skills. I think they are very valuable in for many trading positions.
i'd say 90% of the activity at my hf employer is programming, if not more. i can only assume it's the same at any stat arb funds.
ideating: explain what you mean by lucrative. also, are you referring to full-fledged programmers, or programing hacks who've picked up programming through work?
Good programmers can top 400-500k by 28. I am talking full-fledged programmers.
ideating, Are you hiring full fledged programmers?
No, but if you are a good CS guy it will not be hard to get picked up. The bar is incredibly high though- talking to our tech guys, it is harder to get a job at a top HF than it is to get into Google/Microsoft, etc.
Computer Science major for HF or IB (Originally Posted: 12/24/2012)
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Wow, great job on getting into Stanford SCEA! Congratulations are in order. You should be proud of your achievement. No matter what major you choose to pursue at Stanford, you will be able to land jobs at top BBs, shops, firms, whatever, provided that you have a decent GPA. Computer science will, of course, open a lot of doors to you. You will be able to choose an area of a bank to work in, rather than just IBD like some liberal arts majors are limited to work in. In addition, you will have a vast array of silicon valley companies vying for your attention after graduation. You can even become an entrepreneur and start your own business, or perhaps enter venture capital. Double-majoring or minoring in economics is not necessary, but certainly won't hurt to show that you have an interest in the financial services industry. I would not recommend pursuing a co-terminal masters degree in CS unless you were looking to enter academia or the technical side of the software development industry, which you appear not to be interested in. You don't need the burden of extra classes anyway. Anyways, take my advice with a grain of salt as I am just a humble high school senior like you. Once again, congratulations on getting into an incredible school.
Trust me, you will have no trouble getting HF/IBD interviews as a CS major there. Congrats.
Yes, a major in CS at Stanford with a decent gpa will open up IBD/HF opportunities for you. A minor in management science/economics wouldn't hurt, but it can certainly help your profile and knowledge.
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