Physical Trading to HF
I am a physical arbitrage trader with one year of experience as a junior trader (1 year out of school). While I am elated to have a risk-taking position out of school, I am looking to move out of the rural area that I am in, in search of a similar role on the paper side or a seat at one a better shop in NYC or Boston. Is there any shot that I can move to a hedge fund or asset manager or would I have to stay in the physical space? My company only operates in the spot market and trades 3 types of commodities that are not widely traded by the top shops (ie. Louis Dreyfus, Trafigura, Cargill) (Salt, Steal, Lumber). I know that the nature of the physical trading means that you sometimes are stationed in VERY undesirable areas but I need out. What are my exit ops?
typically this happens after 2-3 years....where you can move from the rural area to a major city and stay with your firm, or move to a competitor, where your skills will translate well. Prior to that...minimum 3 years...no hedge fund will be interested.
Also, you need to answer 3 questions very clearly 1) whats your P&L? 2) whats your risk limit? 3) whats your largest drawdown?
Are you saying that a hedge fund will not be interested before 3 years, or that a hedge fund will not be interested period? P&L: On the year, slightly below $1M Risk Limit: Unsure what you mean by this (the amount that I can spec on?) Drawdown: Unsure what you mean by this
1) hedge funds are looking for a track record of 10mm+ P&L per year, for over 2 or more years 2) largest drawdown = largest multi-day peak to trough P&L drawdown 3) risk limit = how much $$ can you lose before your risk manager stops you out.
You're given risk one year out of school? I don’t believe that. However, you'll need to be 3-7 years of experience before moving.
Temporibus quia illo autem officia possimus est sunt. Ea laboriosam deleniti pariatur et est ab quasi. Harum quisquam sequi rerum optio vero corrupti id.
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...