Rates Derivative Sales to Macro HF?
Is it possible to make this move to an investing role in discretionary macro, or is it always advisable to move to trading / structuring / strats first?
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Transitioning from Rates Derivative Sales to a discretionary macro investing role is possible, but it can be challenging. Based on the most helpful WSO content, here are some key points to consider:
Direct Transition Feasibility:
While moving directly from sales to a discretionary macro role is not the most common path, it is not impossible. Success often depends on your ability to demonstrate a deep understanding of macroeconomic themes, market dynamics, and how they influence asset prices. Building a strong narrative around your expertise in rates and how it ties into macro strategies can help.
Trading/Structuring/Strats as a Stepping Stone:
Moving to trading, structuring, or strategy roles first is often advisable. These roles provide hands-on experience with risk-taking, portfolio management, and quantitative analysis, which are highly valued in macro hedge funds. They also allow you to develop a track record that can be leveraged when applying for discretionary macro roles.
Skills to Highlight:
Networking and Positioning:
Networking is crucial. Engage with professionals in the macro hedge fund space, attend industry events, and leverage platforms like WSO to connect with individuals who have made similar transitions. Tailor your resume to emphasize transferable skills and macro-relevant experience.
Educational and Certification Boost:
If you lack direct investing experience, pursuing certifications like the CFA or taking courses in macroeconomics, portfolio management, or quantitative finance can strengthen your profile.
In summary, while moving directly from Rates Derivative Sales to a discretionary macro role is challenging, it is achievable with the right positioning, skill development, and networking. However, transitioning through trading or structuring roles can provide a more natural and effective pathway.
Sources: Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Global Macro Hedge Fund is Paradise, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions, https://www.wallstreetoasis.com/forum/trading/qa-senior-financial-services-executive-fixed-income-equities?customgpt=1, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions
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You can if someone in XYZ hedge fund takes you
Have you seen the move before? Or completely diff skillset
Have seen these myself:
Associate / VP level sales move to execution trading in macro funds (with the exception of the biggest multi-strats, many mid-size funds will offer you a small book to trade after a while because it is low cost option for them in case you are a talented macro PM). Also have seen execution trader in big funds got poached into pods (though that is more ad hoc for sure).
Director / MD level sales that becomes a good friend of a trading Director / MD there who quit and set up a macro fund, and the market savvy salesperson was invited to join.
Would say traders still have significantly more straightforward paths to buy side, followed by strategists, then structurers.
Yes, but it is much easier if you get closer to risk taking first. Pure sales in rates gives you market exposure and flow color, but macro funds want to see that you can express views, size trades, and live with PnL. Most successful moves I’ve seen were sales → desk seat (trading, structuring, or even assistant trader) → macro HF, because you need a track record of actual decision making, not just client coverage. If you stay in sales too long, you get labeled as relationship driven and it becomes a harder story to change.
Thanks for the reply! From your experience, what is the most common level of experience at which people jump from sell-side S&T at a bank to a macro HF? I know for PE it is quite streamlined at the 2yr mark, but would imagine HFs are less structured. Would most jump at the analyst/associate level or some level more senior?
A macro / rates pm might look to hire a desk analyst at the 2-5 year mark. In the sales side, it’s going to be a pm looking for someone to collate research, execute trades, and broadly manage any bs they don’t want to deal with. Basically PMs need someone that understands dv01, carry and roll, and different trade structures, but doesn’t have too much of an ego. Traders at that level broadly tend to think they are smarter than they are, while strategists (at least for a multistrat pm) are too high level, so surprisingly enough sales can be a good fit. At a more senior level it’s rarer, and would tend to happen much more if you had talked strategy with a senior pm for years.
you again. didn't you just get the role recently why are you switching lanes again. bro, stay in rates
Oh that must be a different person. This is my first post on here
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