Do you have any insight into how that could work out?
Yes, you could end up replacing Jim Simons at RennTech or you could end up auditing risk models. Or somewhere in between. It's all on your own aptitude.
Basically, what’s the hierarchy like in the quant world?
Fairly flat, I'd say. Usually you have a head quant and a few folks reporting to him/her. Usually you don't see much of a hierarchy of 3 or 4 layers of management. So an MD Quant working with a second-year associate on some exotic option model at a sell-side firm is very normal.
On the Quant Trading side, its even flatter. You'd have small teams of quants working together usually and as long as you are belting out good signals, you are rewarded with good comp. Folks usually don't care about titles in these roles. You want % cut of what you generate.
It's hard to generalize all sell side and buy side roles across the board but I think most people would agree that it's a fairly flat structure with the good guys keeping afloat at a role for years and getting promoted every few years, and the lesser candidates jumping shops more regularly to find a better fit.
Considering that would you recommend me to pursue an quant researcher career?
Very strange question this. You want to pursue quant researcher career for your own sake, not on someone's recommendation. If you do indeed know enough Math and love the markets, sure..go for it. But don't do it so that you can "take on some type of leadership position later in my career". Don't want to generalize but the leaders in the quant team are usually folks with PHD who are highly specialized in their field because of their extensive research and not necessarily folks who wanted to
lead a team of quants some day.
Ask yourself what you really want to do. Look through these forums for people sharing their experiences and get a sense of what makes sense to you. And if it excites you, move forward. When someone gets into Stanford to get a PHD in String Theory, they don't ask themselves, whats the downside of being a String theory scientist in 10 years from now, they do it because it excites them.
Or are there better options out there?
...
What are the downsides of being a quant?
Same as any wallstreet job...
- When the economy aint too hot, you gonna get to spend a lot of time with the family
- The hours aren't exactly a cakewalk either
- You'll be surrounded by very high IQ folks who might not necessarily care about your feelings when they give you an honest opinion
- Almost always the pressure to perform is going to be high
