HF Trader vs Analyst

What is the difference between an entry level research analyst and a trader at a deep value HF? What does each do on a day to day basis? Who is given more responsibilities? How is each compensated?

2 Comments
 

At HFs that are more focused on valuation (most deep value HFs fall under this category, along with long/short equity and event), research people tend to be the ones managing the firm, making the decisions and the money. Traders at these places are generally execution only.

The reverse can be true at certain macro and commodities HFs where traders have discretion and people in research are generally just to support them.

 

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