Fundamental Analyst at Prop Trading Firms?

Question

I've seen some job postings of fundamental research analyst roles at prop shops like Citadel Securities, Optiver, and SIG. My understanding is that the analyst performs fundamental analysis based on corporate events/macro strategies and trades the headlines. While the skillsets on these roles seem fancy (fundamental analysis, trading, macro, event-driven, etc.), I'm not sure if the analysts will be inferior to traders/quant researchers in terms of career progression/exit opps. Any insight?

Ovechkin08 · Accepted Answer

Very similar to being a desk analyst on a trading desk at a bank. The two roles I keep seeing advertised are (i) merger arb analysts to help with arb trading, and (ii) corporate credit analysts to help with single-name credit trading. Unlike a sell-side publishing analyst who covers a set list of names, you will focus on reacting to events and move on once that event plays out. Your goal is to price the event (think upside/downside around a series out outcomes) and have a view on where the stock/bonds should trade.

Cracked99 · Answer

I spent last summer in one of the fundamental analyst seats mentioned in OP’s post so I will try to expand on this. Everything said above is generally true, except most firms are really working to expand the trading capabilities of their research analysts. So we would place plenty of our own research focused trades that were generally a bit longer term in nature when we felt that the market was mispricing a dividend size or had the timing of an event wrong as general examples.

scarlet78data · Answer

These firms want Fundamental analysts to work with their Quant Trading teams in order to get a more holistic, non-algorithmic view on where markets could move.

+18	Fell in love with Asia on holiday, now I want to move my S&T career to HK/Singapore. Thoughts??	8	15m
+10	Is 0->Offer in 6 months delusional post-grad	3	1d
+9	How to know if trading is for you?	1	7h
+4	Abysmal return offer rates at top BB (GS/MS/JPM)	3	1d
+2	ERCOT: Is there a submission-time price validation cap on DAM Energy Bids.	1	2d
+2	Non-Compete for a New Grad	1	3h

1	redever	99.2
2	Secyh62	99.0
3	BankonBanking	99.0
4	kanon	99.0
5	Betsy Massar	98.9
6	DrApeman	98.9
7	CompBanker	98.9
8	GameTheory	98.9
9	dosk17	98.9
10	Linda Abraham	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Fundamental Analyst at Prop Trading Firms?

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Fundamental Analyst at Prop Trading Firms?

Trending Content - Sales and Trading Forum