BB trading vs HF QR out of undergrad
Recently got an offer to work at a quant HF out of undergrad, but I’m not sure if I should take the offer or try to got to BB trading instead (going to intern at BB S&T in the coming summer).
Some pros and cons:
HF QR
- Pros
- Interned there, people was nice and extremely smart, culture is also what I like
- More technical (in terms of maths and coding) and perhaps more interesting.
- I’m also considering a part time master degree, which might be more feasible here as the hours are more flexible
- Cons
- Base is lower than a typical BB trader
- Probably greater pressure
- I don’t see myself as an extremely smart person, so I’m not sure if I can excel in this role
- Additional info
- Spinoff of BB
- Rather secretive, can’t find much info on the Internet
- MD said they are top notch (like within top 3 in the industry), but I can’t find any info online
BB trading
- Pros
- Well known firms, so probably more exit opps
- Base is higher
- Opportunities to get to know more people and expand my network I guess
- Cons
- Perhaps less interesting to me. I’m not particularly into monitoring the market
Overall, I’m interested in the HF QR role, and my ultimate goal is to work in a quant HF as a QR and eventually a quant PM. But I’m not sure if I can excel in this role, and am also a bit concerned with the pay. And I think going to BB out of undergrad, then move to buy side is a more typical path, so I’m a bit unsure. I also know that QR prefers PHDs, so I probably cannot get similar role elsewhere. So I was thinking if a slightly lower pay is reasonable?
I appreciate any suggestions/comments. Thanks!
Go to BB. The first job you need to get that brand name on resume.
Pretty sure I know which firm you're talking about - feel free to PM me if you want to hash out the details / have any Q's but I would absolutely go with the fund.
Based on the WSO threads and discussions, here's a detailed breakdown to help you weigh your options between accepting a Quant Hedge Fund (HF) role directly out of undergrad versus pursuing a position in BB trading:
HF Quant Research (QR) Role
Pros: - Cultural Fit and Smart Colleagues: You've interned there, liked the culture, and found the people smart and welcoming. - Technical Challenge: The role is more aligned with your interest in mathematics and coding, potentially offering more intellectually stimulating work. - Flexibility for Further Education: The more flexible hours might allow you to pursue a part-time master's degree, which could be beneficial for your career advancement.
Cons: - Lower Base Salary: Typically, base salaries at HFs can be lower compared to BB trading roles. - High Pressure: The environment in a top HF can be intensely competitive and high-pressure, especially if you doubt your own capabilities in such a setting. - Opaque Information: The firm being secretive and less known online makes it difficult to verify claims about its industry standing.
Additional Info: - Industry Position: The managing director claims it's a top-notch firm, but lack of external information makes this hard to validate.
BB Trading
Pros: - Brand Recognition and Exit Opportunities: Working for a well-known BB provides a strong brand on your resume, potentially opening up more exit opportunities. - Higher Base Salary: Generally, BBs offer higher initial salaries compared to HFs. - Networking Opportunities: BBs can provide a broader platform for networking, both internally and across the industry.
Cons: - Less Interest in the Role: You mentioned a lack of interest in monitoring markets, which could lead to lower job satisfaction.
Strategic Considerations:
Conclusion:
Given your ultimate goal to work as a quant PM in a HF, the direct HF QR role could be more beneficial despite the lower initial pay and higher pressure. It aligns better with your interests and long-term aspirations. However, consider the stability and networking benefits of the BB route if you value a more structured and potentially less risky path to the buyside.
Remember, both paths have their merits, and your personal comfort with risk and where you see yourself thriving the most should guide your decision.
Sources: BB Quant Research versus Quant Hedge Fund Career Path, https://www.wallstreetoasis.com/forum/investment-banking/ib-vs-quant-salaries-quality-of-life-etc?customgpt=1, https://www.wallstreetoasis.com/forums/qa-hf-out-of-undergrad?customgpt=1, Skip banking for this HF? Need advice, Prop Trading (MM) v.s. BB Sales and Trading
Sounds like PDT?
Agreed
Sed consequuntur dignissimos voluptatem incidunt rerum distinctio aut. Nam veritatis praesentium laudantium et omnis. In aut soluta consequuntur eum. Aperiam magni animi eos sed porro dolorem et molestias. Quaerat id est id maxime voluptatum omnis. Amet aliquid ut quas enim voluptas libero ut. Error ut sed aut id animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...