Macro Trading at London HF vs QR at BB in NY
I've been lucky enough to get multiple offers this recruitment cycle. I know I'm more interested in macro trading in the long run; however, the QR job has significantly higher pay, provides more job security, and gives me more exit options. The HF has said they'll let me run my own book 6 to 8 months after I join. I'm unsure if this a good or a bad thing as I'm quite inexperienced. I want a bit more clarity on how easy it is to pivot out of a QR Markets role at a top BB into a trading role. How does the comp differ in the long run? and whether the US or the UK is better for quant macro trading? I'll also be joining the BB as an associate whereas I'll join as a grad at the HF.
Well, you've certainly got a good problem on your hands, mate! Both options have their own merits.
If you're more interested in macro trading in the long run, the London HF could be a great opportunity, especially with the chance to run your own book so soon. However, it's important to consider whether you feel ready for that level of responsibility.
On the other hand, the QR job at the BB in NY offers higher pay, more job security, and more exit options. It's a more stable choice, and the higher rank could be beneficial for your career progression.
Pivoting from a QR Markets role at a top BB into a trading role is not unheard of, but it would likely require a lot of networking and demonstrating your interest and skills in trading.
As for the comp in the long run, it can vary widely depending on the firm, the market, and your performance. Generally, successful traders at HFs can make more than those in QR roles at BBs, but there's a higher risk as well.
Regarding the location, both the US and the UK have strong markets for quant macro trading. It might come down to where you'd rather live and work.
Remember, there's no one-size-fits-all answer here. Consider your long-term career goals, your risk tolerance, and your personal preferences. Good luck!
Sources: Q&A: The Future/Current State of S&T - BB VP Macro Trader, BB Market Risk or MM Quant Trading, MBB vs Quant at IBank
Well, you've certainly got a good problem on your hands, mate! Both options have their own merits.
If you're more interested in macro trading in the long run, the London HF could be a great opportunity, especially with the chance to run your own book so soon. However, it's important to consider whether you feel ready for that level of responsibility.
On the other hand, the QR job at the BB in NY offers higher pay, more job security, and more exit options. It's a more stable choice, and the higher rank could be beneficial for your career progression.
Pivoting from a QR Markets role at a top BB into a trading role is not unheard of, but it would likely require a lot of networking and demonstrating your interest and skills in trading.
As for the comp in the long run, it can vary widely depending on the firm, the market, and your performance. Generally, successful traders at HFs can make more than those in QR roles, but there's a higher risk as well.
Regarding the location, both the US and the UK have strong markets for quant macro trading. It might come down to where you'd rather live and work.
Remember, there's no one-size-fits-all answer here. Consider your long-term career goals, your risk tolerance, and your personal preferences. Good luck!
Sources: Q&A: The Future/Current State of S&T - BB VP Macro Trader, BB Market Risk or MM Quant Trading, MBB vs Quant at IBank
How big of AUM is the HF? I'm somewhat skeptical of a hedge fund that will let you run your own book after 6 months.
The fund is greater than 10 billion in AUM. Their HR and recruiting style is quite haphazard. They generally run low risk strategies and have a high AUM per head. They generally don't recruit much out of university, which makes this quite an interesting opportunity.
Count me also a bit skeptical that they’ll let you manage a slice of risk after 6-8 months, but I stranger things have happened. That used to be the old prop trader model.
Now as to upside, the end state of both of these paths is as a PM for that strategy, and your comp will be formulaic based on your returns, so you should pick the one you have the most natural aptitude for and natural interest in.
It’s not impossible to switch career tracks early on (say from QR —> discretionary macro), but it’s certainly not the path of least resistance and isn’t guaranteed. Personally, I’ve never seen it done.
In my head, the path I'd like to choose is QR to trading macro derivatives on the Sell Side to trading on the buy side. But I'm not sure how feasible the QR to trading jump is. I'd be working with the markets team on the Trading floor if I choose the QR offer.
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