Jun 09, 2022

Q&A: Quant Research Analyst at Startup Fund

Hey, I'm research analyst at a small startup quant/systematic fund (<1bn AUM) located in a major city in the midwest. We have a broad mandate with a focus currently on event driven equity strategies, which is the PM/founder's background.

There's just a few of us and I work on the main strategy but spend most of my time developing and running new signals/strategies. Aside from a nominal base almost all of my comp comes from my strategies for which I have direct, formulaic pnl linkage. We're not large and I don't run much GMV yet, but the hope is that both will grow as the fund raises capital and I develop strategies that perform.

I've found previous Q&As on WSO very helpful so if anyone has any questions - ask away. If there's interest I can describe my background and current role in grater detail.

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4 Comments

ST

Associate 2 in S&T - Comm

Anonymous

1y

What does quant/systematic mean in an event driven context? you either work in higher frequencies around events or you place smart bets around events? (thus the holding period is short either way?)
What is your background and why did you join a startup fund?
Are you the only quant? How has the tech/engineering been?
How did you get recruited there? Do you have a lot of trust in the team?
Very surprising you have directly link to % cut. Did you have prev experience in this?
How did you negotiate that deal? What about drawdown limits and criteria for firing?
Do you work strictly on your own strategies or do the other folks use you for their stuff?

Authored by: Certified Sales & Trading Professional - Investment AnalystCertified Sales & Trading Pro

ST

Associate 2 in S&T - Comm

Anonymous

1y

Most Helpful

Quite interesting! I'm thinking about making a move myself to a startup fund as well.

Is your job at the firm to augment existing strategies (aka work with your PM on every step) or provide the main portfolio some diversification through quant thinking (more independent)?
Do you think being at a smaller start up firm offers more growth opportunities than a larger firm where you only work on one thing?
If your old firm gave you a shot to run risk, would you have stayed or still continued to your current firm?
How long have you been at your new firm and what was the ramp-up process like? was it mostly coding vs sitting with the PM and learning about the markets?
What do you mean exactly by blue chip HF? were you a quant working for discretionary PMs or was it a fully systematic shop?
It wasn't clear to me if you actually ran risk at your old firm. If not, how did you make the jump (convince your current PM) to give you a shot at running risk?
Why couldn't your shop just pull guys out of HFTs or fully systematic shops? (assuming your old firm isn't fully quant) aka what's your selling point compared to the Rentechs/Citadels/Jumps of the world filled with phds running good strats? (literally imagine your PM asking you in the interview "why should I hire you over some phd from Citadel?")
How comparable is your current job vs your last one? Do you think your last job's training was irreplaceable or can someone w/ less experience just jump in and learn?
It sounds like you're in your mid-30s? Does this type of opportunity manifest most 5 years, 10 years, or 20 years into your career and when is it best to hit that bid? aka optimal exercise of career options given past experiences?
If you were 5 - 7 years younger, would you have joined your current shop directly?

Authored by: Certified Sales & Trading Professional - Investment AnalystCertified Sales & Trading Pro

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