transitioning into an institutional career from prop

Quote from a5519:

What's the real value of CFA-degree:

1) For CV, in getting a job
2) For trading independently

Is the value worth of the 3 year effort ?
How it compares to MBA ?
More...

Not to pour rain on the parade but at several of our clients I have hired CFA's for jobs that, at best, were peripherally related to the certification. My observation is that there are many CFA's about and that quite a few end up taking jobs that are marginally related to the speciality.

In the US there is still an oversupply of MBA's and CFA's - although not if you consider these credentials as entry level jobs. The issue for these cert/degree holders is that most of them expect high-paying jobs at the end of their studies and right now these just are not available.

As always, my recommendation is dont spend dollars on these unless you already have a committment for employment prior to starting or are doing this at the behest of your existing employer who is paying the tab etc .......
 
If you plan to stay on your own, I'd advise you NOT to get an MBA. It will only impede your ability to make money in the market. I strive every day to unlearn what I was taught. You'd be far better served spending the 100 grand on the only education that counts in this business -- actual, real-life trading. Good luck.

HD
 
I can't disagree more. The first rule of trading is to make sure you have capital. Fine, I didn't get the interview at Goldman.. But i know that i can make X amt of money to resupply my trading account if i am on my own. Get your MBA.. Even if you can't get into a top program like myself.



Quote from Hello_Dollars:

If you plan to stay on your own, I'd advise you NOT to get an MBA. It will only impede your ability to make money in the market. I strive every day to unlearn what I was taught. You'd be far better served spending the 100 grand on the only education that counts in this business -- actual, real-life trading. Good luck.

HD
More...
 
Quote from CalTrader:



In the US there is still an oversupply of MBA's and CFA's ...
dont spend dollars on these unless you already have a committment for employment prior to starting or are doing this at the behest of your existing employer who is paying the tab etc .......
More...

I couldn't disagree more. Generally speaking education is, hands down, the best investment (err ... read 'trade') anyone can make.

I would think that, if anything else, someone with an advanced education has more opportunity to do the 9-5 at a more senior level and more quickly accumulate a stake to trade.

A trader with education / experience might also trade with less 'fear' given that, to some degree, they can more readily fall back on the 9-5 if they suffer a setback.

That said, different styles of trading may better suit those with more / less education. Yes, now I am beginning to see your point. One could probably never daytrade coming right out of the MBA experience. That being said, I would assert that there are any number of different methods to pull $$ out of the market.
 
I should clarify. I don't discount the value of what I learned in business school. In fact, much of it was quite helpful in my "real" post-MBA career. My point was, for someone who plans to remain an independent trader regardless, there is little if anything of value to be learned earning an MBA that would justify the not insignificant cost.
 
Quote from BlueHorseshoe:



I couldn't disagree more. Generally speaking education is, hands down, the best investment (err ... read 'trade') anyone can make.

....
More...

Probably not. Some individuals need the discipline and babysitting of college professors at the undergrad and grad level: they need to be directed and taught how to research, analyze and organize and prioritize their time.

There are a whole bunch of people that dont need this experience and are ready and able to progress based upon their abilities and hard work. The individuals that possess these abilities inately or from their undergrad should be very wary about the payback from further delaying their entry into the job market - or further inhibiting their full attention and potential.

There have been quite a bit of studies on this and the ROI on graduate degrees is not great - undergrads still carry a good ROI but are not necessary either for smart focused people that intend to start their own ventures in new emerging fields.
 
Lets make a distinction. As someone who has a top 10 MBA and a CFA designation, there is no question but that they do get you the interview in any financial area. So yes it is a good investment in life.

Specifically for trading, prop or hedge fund, they help a little in my opinion, but not much. A quantitative (math/statistical) edge is superior.

You will probably have a hard time getting to CFA as a prop trader (the AIMR requires a sponsor who is a CFA and a certain range of financial job descriptions of which prop trader is not one). The CFA coursework is heavily tilted toward fundamental analysis, so if thats part of your style, well and good. I barely use that stuff.

I've found for interviewing that MBA/CFA opens the door, "prop trader" shuts it in my face again.
 
Quote from fkeane:

Lets make a distinction. As someone who has a top 10 MBA and a CFA designation, there is no question but that they do get you the interview in any financial area. So yes it is a good investment in life.

....
More...

Sorry again to bring in the realities of the world ......

At one of my clients where we recently hired a new position requiring quant, financial and some programming background we had many, many applications from Top 10 MBA schools that also had CFA's: Many were not given interviews.

A pedigree is no gaurantee of even getting in the door in a tough job market where there is an oversupply of extremely qualified candidates. In our particualr most recent case the criteria were very demanding and required extensive experience in addition to credentials. Those with less experience were rejected even though they had impecable credentials.

A good investment in life only if you have the money and time to burn ...
 
Of course it's not. No argument there.

While my experience has been different, yours is more cautionary and definitely worth thinking about. Reasonable people can disagree!
 
You are not paying attention Cal. CFA/MBA doesn't help anyone perform quant or programming. In emerging markets where I specialize CFA is HUGE, in part because 1.) fewer local professionals in emerging markets have earned or even pursued the CFA and 2.) Regulations and ethical issues can be questionable in these markets and having earned the CFA gives a potential employer a known quantity.

While I'm not job hunting I do keep my ear to the ground, and for about half the roles I see, a CFA is all but required.


Quote from CalTrader:



Sorry again to bring in the realities of the world ......

At one of my clients where we recently hired a new position requiring quant, financial and some programming background we had many, many applications from Top 10 MBA schools that also had CFA's: Many were not given interviews.

A pedigree is no gaurantee of even getting in the door in a tough job market where there is an oversupply of extremely qualified candidates. In our particualr most recent case the criteria were very demanding and required extensive experience in addition to credentials. Those with less experience were rejected even though they had impecable credentials.

A good investment in life only if you have the money and time to burn ...
More...
 
You must log in or register to reply here.
Back
Top