Everyday I see tons of people at HFs or large prop shops that have PhDs.
Even at my desk (t3 bank think SocGen UniCredit Commerzbank ING) 2 out of 3 quant trader/strat have PhDs
Given my dream is to break into HFs I was wondering if is worth it to concentrate in this path instead of continuining with banks
About me:
I did a bachelor in finance in a non target Uni (still strong in the region), master in London at a semi and few finance experience (S&T and CF)
Might a PhD in a top uni in a field like financial econometric/financial math/finance give me an edge to break into HF?
Unis like Cambridge /Oxford have HFs like Cantab or MAN behind them.. same I think in the US
I am specialised in volatility and EQD as well as crude trading. I am implementing my algo strategy with Python on crude markets and could prove a decent track record
thoughts?
I think a PhD is less useful than it used to be. Many firms used to require PhDs but now hire strong undergraduates as well. It will help in getting an interview but they care only about leetcode/probability and not your research or expertise. The work is all standard and commoditized now, unless you are bringing in a live strategy from another firm (not one you ran on your own account). Some managers like the degree since they have it themselves and got in at a time when it was valued, but it's not necessary or sufficient to get a job today, much like the MBA or CFA.
You don't need a PhD, but you do need to be the best of the best among other undergrad peers. Having a PhD is one indicator for that.
I do have a BSc and a MSc, other than IB experience in a quant role
Though, no fancy names.. bsc uni is a top 10 but in my country only, MSc uni in London is a good semi but still...
I have a PhD. I think it helped me get my current front office buy side role in options trading. I sort of lucked into it. I don't think getting a PhD simply to go to a hedge fund is a good idea at all. There are just too many things which can go wrong for your master plan to work out the way you think it will. For example:
Finally if you do want a job on the buy side with your PhD keep the following in mind
that's very helpful..thanks for sharing. really makes me think of what to do
I was told when I considered a PhD in Economics that you really have to love what you do, love the field, and WANT to do it to give back to academia since for years you'll be making next to nothing, doing research.
It seems like PhD's self select into HF, not the other way around.
I think a Ph.D. can be helpful but don't believe you need it. If that strategy you're running is being used to manage one of bank's books, then it's likely more relevant than a Ph.D.. to front office trading.
I don't think they will ever allow me to use the strategy.. is also quite complex for me to implement with real money for compliance restriction on trading dictate from the bank
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