Where do quant macro analysts end up?
I know this is a broad question, but where and how do skills (and by extension compensation) evolve to within quantitative macro hedge funds?
From what I gather, a lot never ‘evolve’ into PMs, as those spots are taken by former traders (ideally prop) from banks. In this sense, is being a junior at a macro hf not really the same as it used to be with regards to long term career progression (i.e reaching PM)?
Based on the most helpful WSO content, the career trajectory for quant macro analysts in hedge funds can indeed be quite varied and doesn't always lead directly to a Portfolio Manager (PM) position. The evolution of skills and compensation within quantitative macro hedge funds is influenced by several factors, including the individual's ability to adapt to the changing market environment and the strategic needs of the fund.
From the insights shared, it's clear that the path to becoming a PM, especially in macro hedge funds, is not straightforward. The traditional route of progressing from a junior analyst to a PM role has become more challenging. This is partly because PM positions are often filled by individuals with a strong background in proprietary trading from banks. These individuals bring a unique set of skills and experiences that are highly valued in PM roles, including a deep understanding of market dynamics and risk management.
However, this doesn't mean that there is no room for growth for quant macro analysts. The skills developed in these roles, such as the ability to create and manage sophisticated quantitative models and make data-driven investment decisions, are highly valuable. Analysts who excel in these areas can find opportunities to contribute significantly to the fund's strategy and performance, potentially leading to alternative career advancement paths within the hedge fund industry or in related fields.
Moreover, the hedge fund industry values talent and performance, and there are always exceptions to the general trend. Analysts who demonstrate exceptional skill, innovation, and the ability to generate consistent returns may still find opportunities to advance to PM roles or other senior positions within the industry.
In summary, while the direct path from quant macro analyst to PM may be less common than it once was, there are still many ways for individuals in these roles to evolve their careers and compensation. Success in this field requires a combination of technical skill, market insight, and the ability to adapt to the ever-changing landscape of the hedge fund industry.
Sources: Q&A: First year macro hedge fund analyst, Quant Researcher in Quant Funds: Dead-End Career Path?, Where do Most Investment Banking Analysts end up?, Q&A: First year macro hedge fund analyst
Which quant macro funds are you referring to here?
Perhaps I am mistaken, but I was under the impression that most macro are heavily quantitative now.
I guess I’ll just throw out Brevan Howard - I know they love STEM + programming for entry level roles.
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