transitioning into an institutional career from prop

B

BOSS_HOG

I have been a prop trader for 3 years now and have been thinking about applying my knowledge/ skills towards an institutional career- getting involved with a successful hedge fund or asset management firm. I feel that I would benefit from a more focused and professional environment than is found at many typical prop shops and I would be excited at the prospect of working with a dedicated team. I have been successful in my trading and am very hard working and ambitious. I have my series 7,63 and 55 and am currently studying for the chartered market technician certification. I know that I would fit very well into one of these types of firms as an analyst or trader and need to know what is the best way to go about procuring one of these positions. It is very difficult to find even a list by locale of hedge funds/ asset management firms, if I did, I could begin to canvass the firms in my area- does anyone know of somewhere where I could find a list like this??
And if anyone with a hedge fund/ asset management background can give me some insight into what working at one of these firms is like in terms of culture, salary and advancement potential, I would appreciate it very much.

Good trading to all,
bosshog
 
I think your goal is pretty much the same as 90% on the board (almost all would love to work at a hedge fund), and from my expereince, you either know someone, get lucky randomly, or have an IVY league degree that is heavy in some sort fo quant work..

I am trying to do the same, if you have a solid trading record that helps of course.
I would recommend head hunters, college alumni, and of course networking. The last one mentioned is the most important.
 
Quote from BOSS_HOG:

I have been a prop trader for 3 years now and have been thinking about applying my knowledge/ skills towards an institutional career- getting involved with a successful hedge fund or asset management firm.
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like the poster says above me, there are many many guys like you out there. Even if you have a bunch of degrees and certifications those mean squat in this enviroment. Unless you are some sort of wizard or magic man I'd say your chances are slim to none.
 
Hedge Funds are tough to get into from the top, unless you know the top dogs, getting in at the bottom is easier, while not easy. The only thing is that you will be doing grunt work for a while before making it to the floor in a trading or trading assistant position.
 
Quote from mdl060374:

I think your goal is pretty much the same as 90% on the board (almost all would love to work at a hedge fund), and from my expereince, you either know someone, get lucky randomly, or have an IVY league degree that is heavy in some sort fo quant work..

I am trying to do the same, if you have a solid trading record that helps of course.
I would recommend head hunters, college alumni, and of course networking. The last one mentioned is the most important.
More...

A realistic assessment and good advice. Hedge fund managers are looking for accountants, IT people, and quants. Any high school graduate can pull the trigger on the systematic, computer generated trades or the manager's discretionary trades. The manager will hire his friends and relatives for these low-skill positions.

Trading experience alone won't get you far. But trading experience will make you more attractive than the other physics PhDs.

I recommend people considering going to a prop shop think twice. Prop shops aren't a step on the career ladder, they're a detour.
 
As these people have said, there is NO track from prop trading to hedge funds.

Hedge funds recruit from ivy league colleges and top business schools.

Easiest way to join a hedge fund is to hop over from an investment bank trading desk or another hedge fund.


If you want to part of a hedge fund, you better start your own.
 
Quote from Foz:


Hedge fund managers are looking for accountants, IT people, and quants. Any high school graduate can pull the trigger on the systematic, computer generated trades or the manager's discretionary trades. The manager will hire his friends and relatives for these low-skill positions.

Trading experience alone won't get you far. But trading experience will make you more attractive than the other physics PhDs.

I recommend people considering going to a prop shop think twice. Prop shops aren't a step on the career ladder, they're a detour.
More...

Actually the high skill stuff goes to friends: you want the most trustworthy people involved with the most critical tasks. Yes, only a physics phD skill set is not what is needed: you need someone with highly developed applied mathematics skills - which implies the equivalent computer implementation skills these days - and someone with deep understanding of front desk and backoffice operations. We rarely find this type of person in a physics department - sometimes though.

Prop shop is a route towards an independent business: once you have this experience you have signaled to employers that you really are not a worker bee and what most employers want is someone they can rely on to be a "good employee". The transition back to employee can be made but you really need to expend a lot more effort to convince people you are a worker and not an owner.
 
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