Layoff - Dealing with headhunters
I was recently laid off as a data scientist focused on alternative data at a mid-sized shop. The firm decided to move the R&D team to a foreign country and so my team was let go.
I still feel gutted. I was a top performer, worked at the firm for almost 3y. My manager is willing to be a reference as well.
Trying to make the most of it, and I am reaching out to headhunters.
I am very concerned that I am not a sure shot candidate. How do I overcome being let go when interacting with top head hunters?
Thanks for the help WSO. Appreciate any advice being offered by the community.
I wouldn't worry at all.
You're in one of the hottest areas of the industry. Just get your story down pat and be able to articulate what you want to do next. This is an industry that turns over fairly quickly, so no one is going to really care that you were let go.
You may also want to reach out directly to a few firms that you know of, headhunters offer questionable value (except for the ones who have the rare sole mandate) and it may be better in certain cases to go direct to a fund.
Keep your head up. You'll land a new seat in no time.
Best of luck!
Thank you so much, Telemachus.
Truly appreciate the reassurance and advice.
Curious to hear why you believe headhunters offer questionable value. I thought most data teams heavily rely on recruiters.
Thanks again.
I find headhunters often all have the same roles, at the same funds and offer no more value beyond emailing a CV packet to a fund. However, if a headhunter has a mandate that they only have, that's a different story.
If you have an in at a fund you can go directly to, it may be better than using a headhunter. There's also ltd downside to going to a fund directly vs a headhunter, as headhunters will always be around.
The other benefit of headhunters is their contacts with funds you don't know exist, as it's a big industry.
I'm sure you'll find something! Best of luck!
were you guys actually contributing pnl? so many funds have tried alt data and most of them failed
Many funds are applying alt data blindly without understanding sampling biases or flaws in the data. They’re just trading off short horizon forecasts. Just the release of raw data panels causes markets to move. Mainly common among old school star arb quants making a foray into alt data.
Beyond that, most widely followed alt data sources (I.e credit card) are priced to perfection for top line rev. Lots of crowding takes place, then people are caught wrong footed for failing to capture margin drivers or guidance revisions. Most common among fundamental teams trading off discrete alt data signals.
It is not cynical to say that one can find alpha by fading alt data.
But there are several other exploitable opportunities derived from the problems described above.
Was not directly contributing PnL as I was part of a research team but my work made a notable difference, esp last year when COVID hit.
Yearning to be closer to the action alongside the investment team. Have a few tricks.
so why did they offshore the alt data team then? to cheapen data engineering/cleaning?
Cheaper talent across technical roles. Less communication gaps with everyone in the same timezone. Also shift in strategy based on leadership decision.
^ this. super surprising actually; I know Point72 and Citadel are moving in the opposite direction, putting data scientists actually onto LS pods
sorry to hear you've been let go. This is part and parcel of the industry.
Not sure exactly what your role was and the type of data you look at, but I know Exodus and Schonfeld are building teams.
Do you have experience back testing your ideas and optimizing them as part of a portfolio? This would be more marketable.
Or were you on a researh team that fed ideas to PMs who then could use the features that you found as they saw fit?
Generally, alt data sharpe is fairly low (~1) but if you have several signals that are orthogonal and you think are not widespread it would
be very straightforward pitching this too PMs at multi managers who will stub you a sub-PM seat and let you test on small dough.
This is also valuable advice, thanks.
Was mostly focused on assisting fundamental analysts.
Did build out a systematic LS strat using a niche dataset. Attained a similar 1ish sharpe, which was a bit underwhelming since the s&p is having a 2 sharpe year. Could have improved it by combining other strats or even just improving the mappings.
Schonfeld is hiring stat arb quants so I would not be a good fit. Thank you for the exodus tip.
How much wwre you making?
If you go on non-anon, I’ll DM you; we’re looking to hire for an additional seat
Thanks, OP here
That sucks bro, layoffs always make you feel like collateral damage, like a tree in a storm.
Do you have a rainy day fund? How many months severance did they give you.
I would take a week or two to just process and clear your head. And then the steps to finding a new gig or more about hard work and luck, than any secret process.
We're hiring, PM me
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