goldman strat vs prop trading
so i have a friend with a couple of good offers and he's pretty torn on what to do. he's a quantitative guy - math major, ivy league, top scores... probably a bit more drawn to a trading role than a quant role. he's interested in the high frequency stat-arb stuff. his two offers are: 1) derivative structuring at top US bank 2) DRW Trading assistant (options, futures and some program trading)
he's finding it hard to turn down a bank offer because of the prestige, etc but probably is slightly more interested in trading. his worry is that by going down the structuring route, he'll find it hard to be a quant trader in a top fund later in his career.
i have the impression that there will be some opportunity to move within the bank if he chooses and didn't think it'd be an issue for a junior. wondering if there were any other thoughts...
DRW essentially gets all of its juniors to be pros on their bread and butter which is eurodollar futures and options. First ensure he's interested in that. DRW is a fantastic shop, but note that he's limited in what he can trade. He's lucky to have a derivatives structuring offer, because he can put together tons of instruments into awesome trades that allow him to help the bank and clients profit in many dimensions.
The bank does provide some intangibles, as a structurer, he's dealing with clients quite a bit (relationship building that will serve him well later on). He has to be familiar with the sales side, and very familiar with the trading aspect of his products because he's the one that will know the products he structures inside-out.
Feel free to ask me for clarification regarding any of this.
Although DRW is a great firm, he will be limited in what he learns, and his exit opportunities won't be as nice. at a bank, he will gain exposure to a wide array of complex products and strategies and build relationships with buyside clients. The latter will help him make a transition to a top hedge fund, if he so wishes.
DRW's base salary is pretty good for first-year analysts out of college, and i think they have reasonably low turnover. but still, the long-term benefits of a top BB is hard to turn down.
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