KCG vs small startup hedgefund (founder is from Two Sigma)?

I received offers from KCG (algorithmic trader) and a small hedgefund called Nine Chapters Capital in Short Hills, NJ (research/dev). KCG's earnings seem pretty bleak and they doesn't seem to be making much money. I don't know if they can get back on track because they posted a loss last quarter which seems pretty extreme. In general I would say it wouldn't be that bad working at a struggling company but KCG seems too large to be able to turn the momentum around anytime soon.

The small hedgefund is founded by an ex-Two Sigma guy and they have a billion dollars AUM and seem to be following the Two Sigma model of trading (i.e. longer-term stat arb strategies). They're anticipating to grow in the next few years and are a firm of 20 ppl right now. The main drawback is that they're in NJ (about 45 minutes away from Manhattan). That and I have more doubts that I'll be good at that job than the job at KCG.

What do you think?

2 Comments
 

Interesting decision, congrats on the offers. I'm partial to the Nine Chapters offer, since I would really excited by the chance to build a fund with medium-size assets and work with a small team. You'll probably develop a lot more skills and be asked to do a lot more. Plus, they'll probably be pretty concerned with your development. The KCG role seems a bit dull.

Also, living in Manhattan is pretty overrated in my opinion. Much better to spend weekdays in a place with fewer distractions, then travel to the city on weekends.

 

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