Move from HF to Prop Shop?

Do you guys think this is generally a bad idea?

Currently working @ Platform (millennium, citadel, p72, schonfeld type)

Payout is ok, and I dont mind taking stress + working long hours, but I dont see much forward here - I dont find much learning opportunities. The opportunity is there, but I need to dig things out by myself without help from any colleague/teammate due to the culture of the firm.

I hear prop shops are more collaborative and there are more learning opportunities (and I am aware that there is no payout here; more of shared p&l).

Do you think moving from HF to prop shop is a bad choice? I value learning opportunities and collaborative environment more. I want to be in an environment where I feel like i'm the dumbest guy in the room. 

Most Helpful

When I talked to CEO of one of the best prop shops nowadays, he told me that they have a collaborative structure, so the bonus is highly regularized. It means, that if you had a bad year and was not very successful with your "alphas" you still get paid out of other people's pockets. The same works the other way: if someone else had a bad year, you indirectly subsidise his underperformance. So, the turnover in his firm is almost zero, everyone gets paid a good amount of money, but no one is paid jackpot. On the other hand, CEO of one "platform" hedge fund told me that I can make any amount of money here; no one subsidises my underperformance, nor participates in upside.

That being said, it is a personal choice. Almost like joining FAANG vs hot startup. FAANG = high Sharpe, hot startup = opportunity to make jackpot. If you have a strategy and would like to build a business, go MM. Otherwise, for more academic quant, prop is the place to be for sure. 

Aut deleniti similique vel corporis aliquam asperiores cumque. Illo dolorum dolor exercitationem est.

Sunt corrupti dolor neque voluptatem et repudiandae enim. Nisi dolorem magni necessitatibus aliquam velit. Eum animi fuga quis nemo est est.

Itaque vel praesentium qui optio eaque. Minima pariatur dolorum dolore minima animi ut et. Dolorem asperiores pariatur dolor voluptatem modi sint. Dolorum repellendus soluta quia et eum.

Career Advancement Opportunities

September 2023 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

September 2023 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Millennium Partners 94.6%

Professional Growth Opportunities

September 2023 Hedge Fund

  • D.E. Shaw 99.0%
  • AQR Capital Management 97.9%
  • Point72 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

September 2023 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (22) $464
  • Director/MD (11) $434
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (67) $273
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (222) $178
  • Intern/Summer Associate (21) $134
  • Junior Trader (5) $102
  • Intern/Summer Analyst (243) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”