How tough is it to get a job as an execution trader at a top hedge fund? I'm sure it's not as selective as becoming a portfolio manager or a trader with your own book. I recently came across a linkedin profile of a guy who used to work as a floor trader at the CBOT before becoming an execution trader for the medallion fund at RenTech. This gives me the impression that the criteria for execution traders, even at elite funds, is a lot lower than other jobs.
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I think its a foot-in-the-door thing, but I hear that its not something you want to do for long. One VP told me awhile back, "Make sure you don't get stuck as an execution trader." On the other hand, its something I've considered if there weren't any other options to get into an HF.
How is the pay?
That's interesting I didnt think RenTech had execution traders. I just assumed it was all automatic. Execution trading can pay decently. Probably like a 300k a year sort of job, maybe slightly more at a large shop. There's a skill in it, but that skill isn't transportable. It's something you're probably ok retiring into to end things out, but not the greatest place to start. Unless it's where you'd want to stay.
Yeah, I was a bit surprised too that RenTech had execution traders. This guy is now working at a big NYC hedge fund, executing trades on the Asian desk.
I wouldn't mind working as an execution trader at a top hedge fund and then try to move up. I work for a small hedge fund in chicago and am trying to find a new job in NYC.
300K? Seriously? I have a friend at a FofF who mentioned getting me a job as an execution trader out of college, and I didn't get the impression that his friends were going to pay me anything like that.
300k is an execution trader with a good amount of experience...the job tops out around 500k and thats the most senior guy on the desk in each product. The only reason its good is because if you get a good relationship with people at a big fund you can go get a fat contract to cover the fund on the sell-side. It is rarely a job that leads to being a portfolio manager.
What do you mean, by "cover the fund" on the sell-side? Are you talking about working in prime brokerage?
most portfolio managers are ex-traders and research analysts.
i mean go be a salesperson on the sell-side and have your former employer as a client. Having a good relationship with one big fund can make a very lucrative sales career.
It is rare that a PM is former buy-side execution trader...many are former sells-side market-makers/traders but at least at the funds i know (including the one i work for) the pure execution guys are basically at a dead end without a move elsewhere.
I thought sell-side market makers generally don't have that many exit options.
If you excel in the execution desk, is it possible to move to "real" trading, or are you just stuck in that role?
"I thought sell-side market makers generally don't have that many exit options.
If you excel in the execution desk, is it possible to move to "real" trading, or are you just stuck in that role?"
sell side market makers can go to funds but anyway, what do you consider to be "real" trading?
and yeah bondarb is of course right I meant 300k is execution with a couple years of experience. if you like the job and the lifestyle 300k isn't bad money at all.
Why a hedgie? Goto a Public Pension fund and be an execution guy for their Money Markets or Structured stuff. Good benefits, basically no hours, lots of sell-side contacts, you basically do nothing but make some calls every day.
Guys, just to bring everyone back to reality, if you are making 300k-500k as an execution trader, then you have way more than "a couple of years" of experience. Also keep this in mind, if your fund goes down as an execution trader you are toast and have no transferable skills. Turnover is extremely low for execution traders because they have no where to go so don't expect openings at other funds if your fund collapses. This is the riskiest position at a fund from a career perspective.
Execution Trading - how hard can it be? (Originally Posted: 03/27/2011)
What does a vanilla Execution trader do? Someone told me they pretty much take an order, punch it in, and lets the algos do the rest... Am I missing something? Is there anything more involved or strategic that I've overlooked?
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