Physical Trading to HF

I am a physical arbitrage trader with one year of experience as a junior trader (1 year out of school). While I am elated to have a risk-taking position out of school, I am looking to move out of the rural area that I am in, in search of a similar role on the paper side or a seat at one a better shop in NYC or Boston. Is there any shot that I can move to a hedge fund or asset manager or would I have to stay in the physical space? My company only operates in the spot market and trades 3 types of commodities that are not widely traded by the top shops (ie. Louis Dreyfus, Trafigura, Cargill) (Salt, Steal, Lumber). I know that the nature of the physical trading means that you sometimes are stationed in VERY undesirable areas but I need out. What are my exit ops?

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Comments (11)

Jan 13, 2020 - 7:20pm

typically this happens after 2-3 years....where you can move from the rural area to a major city and stay with your firm, or move to a competitor, where your skills will translate well. Prior to that...minimum 3 years...no hedge fund will be interested.

Also, you need to answer 3 questions very clearly
1) whats your P&L?
2) whats your risk limit?
3) whats your largest drawdown?

  • Junior Trader in S&T - Comm
Jan 13, 2020 - 8:34pm

Are you saying that a hedge fund will not be interested before 3 years, or that a hedge fund will not be interested period?
P&L: On the year, slightly below $1M
Risk Limit: Unsure what you mean by this (the amount that I can spec on?)
Drawdown: Unsure what you mean by this

  • Junior Trader in S&T - Comm
Jan 13, 2020 - 8:31pm

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