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This hedge fund, are the partners from BBs? Chances are the MM has more MDs who worked at BBs. It depends to if the HF specializes in healthcare trading whereas the MM does global equities and commodities. That is to say, industry specialization can be a driver for that BB role you want. Any choice you make will only be as good as the performance and dedication you give.

Let's put it this way, if you work at a $500M hedge fund and bring in Russian clients while offering good strategies, you will have more doors open for you than being an excel monkey at a MM. The scenarios can be flipped.

 

Where will you learn the most that is related to your future goals? That should be what you focus on now.

Why would you want a BB trading gig if you excelled at either of those other places? Most trading jobs are going to pay you (once you are actually trading your own book) based on how much you make for the firm... depending on the shop, you have an easier time standing out and being a rockstar in a small firm while also getting more one on one attention... I'd give both options a legitimate shot rather than just looking at them as a stepping stone, because you may very well look past a great opportunity.

 

Some of the best paid traders tend to work at hedge funds and prop shops, rather than banks.

That said, it never hurts to start at a firm that has a well-known brand-name. Not saying you should pick GS over Jefferies, but if you're not 100% sure you want to stay in trading and might want to do asset management or research one day, it might be a good idea to at least pick Jefferies over Peak6. Not because Jefferies is better, but because everyone in finance at least knows the name, what a quant analyst does there (at least folks in research and trading), and that they generally hire pretty smart people.

Are you sure you want to be in trading? Back when I was a college student, I was convinced I wanted to do S&T. But markets change and being a trader is not all it's cracked up to be. Especially in this economy.

The unemployment rate for traders and TAs right now is probably around 20-30%. For quants, it's like the recession doesn't even exist and unemployment is around 3-4%. And in the average case, quants make more money than folks who choose the trading route. Anybody can be a trader; only a few folks are qualified to be quants.

If your heart isn't 100% set on trading, I'd look long and hard at that quant role.

 
IlliniProgrammer:
Some of the best paid traders tend to work at hedge funds and prop shops, rather than banks.

That said, it never hurts to start at a firm that has a well-known brand-name. Not saying you should pick GS over Jefferies, but if you're not 100% sure you want to stay in trading and might want to do asset management or research one day, it might be a good idea to at least pick Jefferies over Peak6. Not because Jefferies is better, but because everyone in finance at least knows the name, what a quant analyst does there (at least folks in research and trading), and that they generally hire pretty smart people.

Are you sure you want to be in trading? Back when I was a college student, I was convinced I wanted to do S&T. But markets change and being a trader is not all it's cracked up to be. Especially in this economy.

The unemployment rate for traders and TAs right now is probably around 20-30%. For quants, it's like the recession doesn't even exist and unemployment is around 3-4%. And in the average case, quants make more money than folks who choose the trading route. Anybody can be a trader; only a few folks are qualified to be quants.

If your heart isn't 100% set on trading, I'd look long and hard at that quant role.

I disagree with alot of this post. The work most quants do is pretty commoditized as opposed to trading where once u have a track record it is 100% yours and people see it as your skill that made it happen. I work with quants that are way smarter then I am and they get paid less then I do (assuming I continue to make money) and they have to basically take orders from all the PMs. As a portfolio manager or trader you basically "run your own business" and dont have to take shitt from people as long as you are making money. Also, I know many quants who are out of jobs...in 2008 a significant percentage of quant funds went bust and so there is plenty of slack in the labor market for "quant genius" jobs.

 

Thanks for the input guys. You've brought up some interesting points. I guess I have to do a lot of thinking to figure this one out.

To answer a few questions, there are BB alums at both the HF and the MM. Both roles involve working with multiple asset classes, and I do enjoy trading and I can defiantly see myself doing it in the long run. I am sort of leaning towards the HF.

My main concern with the HF is the lack of name recognition. I'm still pretty junior career wise, and I see a lot of risk associated with taking a HF offer at this point. What if the fund disappears in a year or 2? What if it turns out that I'm a shitty trader? What would i do then? What value would my resume hold at that point?

 

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