Evaluate this situation - Stable family office or high-risk prop trading firm?
Monkeys: need some help with a career decision that I can't confidently decide on. Would like your advice on how to evaluate my options. I have two job offers I am currently considering. Both of these are very different in scope, and could lead to potentially very different career paths.
For some context: Went to school in the northeast, and my first job was in discretionary prop trading in the northeast after school. All of my internship experience in school was in fixed income macro trading. However because of difficult market conditions when I graduated I started off at an equity prop trading firm.
The first job is a trading job at a large family office on the west coast. I would be doing both execution trading and taking limited views in certain fixed income markets, and consulting on the main portfolio. I can see the value of this job as threefold: getting a strong name on my resume such that an MBA at a HYPS is possible (nice to have in the back pocket), a similar role at a large AM could be a potential exit, and pretty decent comp such that I can save up enough money after a few years to trade my own money for a living with the strategies I have already developed. The risk is that it could wind-up being a dead end given execution will be the main focus. It also seems many people choose to stay here for most of their career which is not a level of commitment I am willing to give at this stage in my career. I think the fact that it is in a smaller city on the west coast will also make career progression and finding new roles difficult.
The second job is a trading job at a solid prop firm in the northeast. Not a top-tier firm, but certainly known within prop and has plenty of capital to scale me up. This job allows me to make the switch from equities to discretionary fixed income macro trading. I got this job by developing an audited track record with my own money for long enough that they found interesting. The upside here of course is millions a year in earnings and extreme autonomy, but the risk is that you can also lose your seat in 6 months to a year if things don't pan out (worst case scenario). Another risk is that if it doesn't work out here, I might be unable to transition into another part of the industry given this would be my second job in a row after school in prop. I am fairly confident that I will make money, but am concerned that it might not work out for unforeseen reasons (don't like the vol profile, not hitting their profit targets, not consistent enough, etc.).
How would you evaluate this situation? What other information would you need to consider before making a decision? What other risks do you think exist that I haven't laid out? If you were in this situation, what decision do you think you would you make?
Thanks, and looking forward to the discussion.
Hey there, fellow primate! You've got quite the decision on your hands, don't you? Let's break this down a bit.
Starting with the family office gig, it seems like a pretty stable option. You've got the potential for a strong name on your resume, a potential exit to a large AM, and decent compensation. The downside, as you've mentioned, is that it could end up being a bit of a dead-end, especially if execution is the main focus. Plus, the location might make career progression a bit tricky.
On the other hand, the prop firm job is a bit more of a wild ride. You've got the potential for big earnings and a lot of autonomy, but also a lot of risk. If things don't pan out, you could lose your seat pretty quickly. And if it doesn't work out, transitioning to another part of the industry might be tough.
So, how to decide? Well, it really comes down to what you value most at this stage in your career. If stability and a clear career path are most important to you, the family office might be the way to go. If you're willing to take on more risk for the potential of bigger rewards, the prop firm could be a better fit.
As for other risks, it's always worth considering the culture of the places you're considering. Do they align with your values? Will you enjoy working there? Also, consider the potential for growth and learning in each role. Which job will help you grow the most as a professional?
If I were in your shoes, I'd probably lean towards the family office. It seems like a more stable option, and the potential for a strong name on my resume and a potential exit to a large AM is pretty appealing. But that's just me! You've got to make the decision that's right for you.
Hope this helps, and best of luck with your decision!
Sources: Why pick S&T over Prop trading?, Family Office vs. Traditional LP Career Path, Family office Private Equity - help, Q&A: Options Trader at Top Prop Firm
-bump
Non quo amet repellat officia quam. Est optio veritatis repellendus aut vel aut blanditiis. Est ex commodi corrupti unde aut quae ut aut. Perspiciatis sed consequuntur corporis sit voluptas velit.
Rerum numquam adipisci minus et eveniet voluptate mollitia quia. Minima facilis id vitae. Suscipit tempore quaerat nam ut praesentium. Sit in numquam facilis nam omnis. Illo quis qui neque deserunt aut voluptas quia exercitationem. Blanditiis aspernatur odio consectetur reiciendis pariatur iure sint.
Aliquam maiores quia tempora a quas vitae. Exercitationem modi non dolores pariatur accusamus. Ut deleniti voluptatem tempora. Enim mollitia sunt omnis corporis vitae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...