Opinions on Execution Trading at a Hedge Fund
Hi everyone. I have recently received an internship offer at a very popular hedge fund for execution trading - specifically trading equities. My desire is to go into a fundamental investing role in the long run. I have a few other offers (LMM PE, Tier 2 Consulting) but right now this seems like the most sensible thing to do. I am quite sceptical about the position as people have told me it is a glorified middle office position.
Can anyone tell me their experiences with execution? Comp? Culture? Exit or Career growth opportunities?
Also if this is something that does not seem to be good in the long run - how can I leverage it to serve me well in the future?
Thanks in advance.
Would stay away from execution trading unless you want to do it long term. The skills you gain will be very niche and you’ll be pigeonholed. You don’t take risk and you don’t learn how to analyze companies either. What you’ll learn is how to get the best price for a trade and minimize slippage and transaction costs. This can still pay well but it’s not going to help you achieve your particular goals. PE or consulting will position you better in my opinion.
Thanks for the reply. My thought was - because the firms has great reputation and is known by everyone I could use it to my advantage when I’m applying to positions next year.
However with consulting (B4) or the LMM PE (not known) there is less prestige (in my opinion). Which one would be better if I wanted to apply to IBD, PE and Fundamental Hedge Funds next year?
No clear winner here - some people value brand names and others value the relevance of the role. I’d probably do LMM PE as that has the most compelling narrative into IB/PE and HF investing roles.
Honestly if you’re not into exit opps, execution trader sounds fun. You have a niche set of skills and are negotiating all day, coming up with creative strategies to fill an order.
Getting that HF name on your resume is an amazing opportunity. Don’t think you are pigeon holed as an intern and this is a solid seat
What does "popular" hedge fund mean??? Never heard that adjective used to describe a fund....
Just a known name
Look, if you don't want it I'll gladly swap places
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