Buy Side Execution Trader to Sell Side?
I'm currently an execution trader at a $10B hedge fund. I take orders from 3 portfolio managers. 2 PMs send me orders directly and for 1 PM I'm executing based off a pre-defined strategy. I trade US, HK, IJ, and JP equities and equity options.
This is kind of boring and I'm thinking about making the switch to the sell side desks. I'm 26, went to a top 50 school, think Boston college, and have a 700 GMAT, and have my CFA. Would you say I'm competitive for a trading position at a BB? Is there anything I could do to raise my odds? Would the best networking be through the relationships I have through our counter parties?
Don't reach out to counterparties unless its someone there you can trust not to leak it back to your bosses. Have you considered going with recruiters who can go anonymously for you to employers? That's the safest way.
You should have the network at this point where you are close enough to people to hear of openings. This isnt an uncommon move, as the skillset is similar.
What is the reasoning behind you wanting to switch other than you are bored? If the HF is struggling or there is limited upside for you there, then I can understand.
Why do you think that life on the sell side is going to be less boring?
Off topic but what sort of salaries do you make as an execution trader?
I made 85k + 40k bonus this year.
I think I'm feeling this way and wanting to make a switch because I'd like more decision making responsibility. As of now my PM's almost micromanage my trades and I'd like to be somewhere, either another fund, or a different desk, or a different role, where I'd have more of a say in how a trade goes.
if you are only making 125k at a HF as an execution trader then, I can understand why you would want to leave. That is well below the what execution traders make. However, the Sell Side is an entirely new ball of wax. Can you make more? Surely. It can be hard to adjust for some going from buy side to sell side...
Agreed. You should think long and hard as to whether you really want to switch to sales. I know a sales veteran who will tell you to tread lightly. He did it for two plus decades. He ain't doing it anymore for a reason. I would get with recruiters who can take your resume to bigger funds not sell side.
I am a Hedge Fund Execution Trader. I could never work for the sell side. For me, it is more of a personality type that can cut it on the sell side.
Sales Traders have to wait until AFTER they hang up to say "F*ck you", buy side traders can say it BEFORE they hang up.
One other thing: if you are trading HK, JP and IJ Live hours, firms usually have Hazard Pay. A premium over your base for working off hours.
What would you say the industry average is for an execution trader? This was my first year on the desk after moving from ops if that makes a difference.
Edit: live and work in NYC
I recruited for sales and trading roles (incl. execution traders) when I worked at BB. Terrible jobs (esp. execution traders), and I truly felt sorry for them. Definitely stay on the buy-side. Just move to a different HF--use your network. For your first year, your comp is just a bit low. $140-150K is more typical comp. If you're not seeing the appropriate compensation increases, then change companies every 3-4 years. And look before you leap (choose your next company carefully--watch for high turnover and widespread frustration). Good luck!
Hi Tr1p,
Any update to provide on your current job status? Would be interested to hear how things have been the last year, whether you stuck around at the fund or transitioned to a sell-side role? Did they take care of you comp wise for 2016? Thanks!
What makes you think that sell side will be more exciting than a HF? If anything the responsibility will be lower too.
Buy-Side Trader to Sell Side (Originally Posted: 03/04/2018)
I've seen some posts on this in the past but in a bit of a different spot as I'm only 2 years out of school and have been handed quite a lot of responsibility in executing on a $2B portion of $6B+ AUM and collaborating on research/projects and strategy for the rest. While I enjoy it, upside is a bit limited and the strategies are so focused I think I could get pigeon-holed long term.
What would my best route be to try to transition onto a bulge bracket equity derivatives desk? Didn't go to a top tier school but have solid buy-side work experience uncommon for others my age.
I had a fellow friend who was in a similar position. He spent almost two years as an execution trader on the buy-side. And his resume is quite interesting, he was formerly a salesperson at a commercial bank before he worked on the buy-side. And essentially what he told me was to leverage your network, whether it is reaching out to your school alumni who is a sell side trader or cold-emailing equity derivatives trader at top BBs or MMs. After doing just that, he was able to transition to the sell-side, currently on the FICC desk. Lastly, he didn't come from a target school either.
Do you know what Totse is
Any update on your transition efforts to get on the sell side?
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