Comments (19)

Dec 1, 2021 - 5:49pm

Well, if it's for a quant research role and you're getting a nod that should mean you're pretty handy at finding some answers. Find out their AUM and the fund's age to see if there's a reason they won't pay a base (even if it's meager and just covers bare CoL)? What's the background and pedigree of the PM and/or founder(s)? What about the risk profile of the fund? If you're looking at quant research I'd be asking why this sounds more like S&T? Even smaller things like is this in-office or remote? Do they even have a physical office? If there's no base and it is remote, then who and how pays the friggin' light bill, internet bill and phone bill? And on and on...

Basically, you've just baited me into asking more questions than you to have answers for. Answers you definitely need to find out that could lead to deeper questions like if this is for some wild tin-foil hat style AML or tax avoidance conspiracy operation or other outlandish stuff (they do exist, just saying).

Dec 2, 2021 - 1:30am

Thank you very much for your detailed reply.. the fund is a startup fund with 100 aum... mainly focused on equities.. the pm was a former head of risk desk at a top bank in told me " if you are looking for salaried position this is not like this"..l guess it is fully remote.. they are more interested in receiving my signals for the other markets than their prime focus (equities)... to differentiate the fund...i have a few systems already so the quantitative research part is in some eways over.. And this will be more of a risk taking role with my signals supplied to them directly.. he is ok with me keeping the ip rights.. but some of the system signals can be backward engineered.. rule based. Not ai..

  • Associate 1 in IB-M&A
Dec 2, 2021 - 1:21pm

Guy sounds stringy af. How are you expected to live month to month? You just get one year end lump sum? Sounds ridiculous. Please don't accept it. The guy is trying his luck. It's fucking asymmetrical for him. Zero outflow/downside (no office, no income for you) if the fund loses money and if the fund makes money, he gets most of the $ anyway. It's the sort of thing he will tell his buddy "holy fuck. I hired this guy and I don't even need to pay him base". Maybe you might be desperate to break in but this is not the way.

Dec 2, 2021 - 1:47pm

Yes.. this was actually quite a surprise no base was offered... and I would just be supplying the signals... to the funds to be traded.. but I know this would require me to assume the role of the quantitative developer.. to setup up the trading architecture at my end.. which is handled by developers in funds.. and I am more interested in pure alpha discovery

Dec 3, 2021 - 7:30pm

Fucking run dude. I've seen salary as a draw on PnL for PM roles, but the skillset of a good quant is way to in demand to be a "zero salary position" unless you are running your own shop.

Also, I'd be highly skeptical about a former head of risk running a shop unless there is some other alpha generating track record. From my knowledge, there are very few good quants left at banks nowadays (at least in alpha roles).

"one for the money two for the better green 3 4-methylenedioxymethamphetamine" - M.F. Doom

  • 2
Dec 4, 2021 - 2:25am

He is saying that i can keep my ip and just send my signals to be traded at the fund.. for a percentage of pnl... so the base will not be offered.. he says u can send your signals to other funds if i wish.... the fact is that some of the signals can be backward engineered (most are rule based not ai- generated) and i feel that this is just a setup to do this... besides "just sending signals" means i will have to setup and monitor a crash proof remote signals server.. effectively running my own small fund under their umbrella.. that involves a lot of development costs and maintenance costs...

Most Helpful
Dec 4, 2021 - 11:15am

Ok this has a few things to unpack:

  • Pure rules based signals is a bit of a red flag to me / gives me Instagram forex dealer vibes
  • If someone can back out your full model / most of it from just the output signal, then I wouldn't think the signal is that that great. If you are using a bunch of datasets as inputs, the task of backing it out is incredibly hard. If on the other hand you are just looking at price action, then it's likely not hard to discover on ones own / maybe isn't worth guarding so closely. How long have you been in alpha research / developing this? Did you start at an institution or is this "homemade"?

My view on this is kind of reversed now that there more info on the board - basically what you have is an arrangement where a dude is saying "hey, tell me what/when to buy and I'll give you a split of the PnL at no risk to yourself." It doesn't sound like he's even asking you to leave your day job - if you already have the signal, this sounds like a dream deal of no real downside and nothing but upside.

If the only catch is you are worried about him having access to your signal to execute, then thats going to be a problem at almost every quant fund. Not trying to be a dick but seems pretty reasonable given the additional info. My only question is why he would offer you such a good deal in the first place?

"one for the money two for the better green 3 4-methylenedioxymethamphetamine" - M.F. Doom

  • 7
Dec 2, 2021 - 1:59pm

Thank you... from the discussion we had he told me If the funds makes 4mil my comp would be 300 to 400k which is close to 10% of pnl.. but still not guaranteed and no base provided..

  • Investment Manager in HF - Other
Dec 2, 2021 - 2:09pm

A percentage of overall PnL and not yours? And PnL I assume you mean the cut they take from performance? Not raw PnL? Is that right and is it in writing? Because $4mm from $100mm assuming 20% cut of returns is a 20% yr for the fund, which I doubt is a consistent thing. 

Anyway, I wouldn't do it, but have no idea what options you have. 

Dec 4, 2021 - 2:32am

Yes he reached me on his own initiative through LinkedIn..i am still planning to broadcast my system stats to a few thousands connections there to see if i can find a role at a more established fund with a base comp p

  • Analyst 2 in PE - LBOs
Dec 11, 2021 - 11:56am

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