I'm a buy side Quant Researcher at a top hedge fund (Jane Street/Two Sigma/AQR/etc). AMA

KenKaneki · 5/1/25

Hi @qn_username. Thanks so much for taking the time to do this, especially given your busy schedule. I’m returning to the industry after an MFE and will start as a quant researcher at a hedge fund which does MFT. I’d really appreciate any advice on how to grow in this field. I enjoy digging into research papers and trying out my own versions of the ideas, but I often find it tough to turn these concepts into real alpha. I’m grateful for the opportunity to work in such an intellectually stimulating area, but I’d love some tips on how to stay level-headed and focused day-to-day. Also given the fast developments in the GenAI space, could you please share your thoughts at high level on what parts of this "new tech" can have an impact in the alpha research space.

qn_username · 5/1/25

kingston said:
Hi OP! Thanks for doing this and providing valuable insights to us. I am currently doing my MFE program in the US and have done my undergrad in Math and CS. I am involved with labs at my university and that is kind of making me inclined towards pursuing a PhD. However, since I like both Math and ML, I'm confused as to what shall I pursue. Since I haven't figured out a niche research area in either, what would you recommend I should look more into (Math or ML, and what specifically in them)?

I'm still going to finish my MFE and then take the call on PhD, do you recommend the PhD path over MFE path of getting into buy-side. Moreover, since you have done a PhD yourself, can you please share your journey from a PhD to a buy-side firm?

It’s great that you have both options. If you’re considering a PhD, the most important factor is picking a topic you enjoy. PhD is a long journey. If you're not motivated by your research, it can be tough to sustain. Between the two, ML is for sure more marketable than pure math - both in academia and in industry.

As for my own path: I wasn’t thinking about quant finance during my PhD. I started exploring it seriously only around graduation, so I consider myself lucky things worked out. If your goal is to get into the buy-side, and if you're able to do that after your MFE, I don't see a strong reason to pursue a PhD just for its own sake. If you cannot break into buy-side right away, maybe a sell-side role can also expose you to relevant skills.

A PhD gives you deep research experience (hopefully), but getting into the industry earlier also has its advantages. As for myself, I don't regret doing a PhD - I'm proud of my thesis and people still cite my work. However, from a practical standpoint, starting my career earlier might've given me a slight edge by now, if I knew where I would end up.

qn_username · 5/1/25

KenKaneki said:
Hi @qn_username. Thanks so much for taking the time to do this, especially given your busy schedule. I’m returning to the industry after an MFE and will start as a quant researcher at a hedge fund which does MFT. I’d really appreciate any advice on how to grow in this field. I enjoy digging into research papers and trying out my own versions of the ideas, but I often find it tough to turn these concepts into real alpha. I’m grateful for the opportunity to work in such an intellectually stimulating area, but I’d love some tips on how to stay level-headed and focused day-to-day. Also given the fast developments in the GenAI space, could you please share your thoughts at high level on what parts of this "new tech" can have an impact in the alpha research space.

Congratulations on your new role!

You might want to take a step back and diagnose why you find it tough to turn ideas into real alpha. Is the data not available? Implementation challenges? Or do the ideas simply not work after proper testing? If it’s the last case, that's completely normal - most ideas don't work. That's just the nature of research. Try not to get discouraged by it; focus on your learning. Also, don't hesitate to tap into your mentor or manager - they can help you filter / refine the ideas.

As for GenAI - I'm excited to learn more too. New technology always brings potential. Let's see how this industry adopts it.

indexquanty · 5/2/25

Hi @qn_username this is so helpful thank you for taking the time. Had a few questions and was hoping you could opine in the context of the UK market if you know much about it. For context i did an econ undergrad, currently taking some math uni courses & C++ on QN and currently role is within ETF capital markets so market microstructure and impact of trading, index vs ETF divergences, ETF options etc is all i look at all day. Also build and develop quantitative models which analyse market impact and tools that give live pricing and risk analysis etc. Speak to the market makers all day so as close to trading as i could get without taking on risk:

How important is the choice of the university and the choice of degree? So i am considering Applied maths rather than an MFE at tier 1/1.5 unis here due to cost and also because it broadens my horizon if i wanted to do something in ML or Tech. Or would settle for stats. Given some of the discourse on twitter about this, would be good to know your thoughts? So for instance would it be better to do statistics at oxford/imperial than doing applied maths/mfe at a tier 2/3 uni?

In addition, what is your take on people pursuing what is effectively a declining industry (at least in terms of opportunities relative to supply). How do you think AI would affect this decline? With your knowledge of the industry if you were in my shoes would you pursue this route, if you could have a plan B/C what industry/job would it be? I have a genuine interest in predictive modelling so would do this anyway even if i dont end up in finance but end of the day it is a levered bet on a future job market

Finally project ideas. There are some on QN which i have looked at but given your knowledge do you have 1/2 which you think would teach the person alot esp given my background. Hopefully one that would prepare me for interviews. Much appreciated!

qn_username · 5/2/25

indexquanty said:
Hi @qn_username this is so helpful thank you for taking the time. Had a few questions and was hoping you could opine in the context of the UK market if you know much about it. For context i did an econ undergrad, currently taking some math uni courses & C++ on QN and currently role is within ETF capital markets so market microstructure and impact of trading, index vs ETF divergences, ETF options etc is all i look at all day. Also build and develop quantitative models which analyse market impact and tools that give live pricing and risk analysis etc. Speak to the market makers all day so as close to trading as i could get without taking on risk:

How important is the choice of the university and the choice of degree? So i am considering Applied maths rather than an MFE at tier 1/1.5 unis here due to cost and also because it broadens my horizon if i wanted to do something in ML or Tech. Or would settle for stats. Given some of the discourse on twitter about this, would be good to know your thoughts? So for instance would it be better to do statistics at oxford/imperial than doing applied maths/mfe at a tier 2/3 uni?

In addition, what is your take on people pursuing what is effectively a declining industry (at least in terms of opportunities relative to supply). How do you think AI would affect this decline? With your knowledge of the industry if you were in my shoes would you pursue this route, if you could have a plan B/C what industry/job would it be? I have a genuine interest in predictive modelling so would do this anyway even if i dont end up in finance but end of the day it is a levered bet on a future job market

Finally project ideas. There are some on QN which i have looked at but given your knowledge do you have 1/2 which you think would teach the person alot esp given my background. Hopefully one that would prepare me for interviews. Much appreciated!

UK quant markets are lively. There are competitive funds generating impressive PnL and keep expanding. Given your current role, you are in a great position: you're close to the markets, building analytical tools, gaining niche expertise in ETFs and microstructure. That's highly relevant and marketable.

On university and degree choice: brand and degree help at the resume screening stage. Screening is often fast and crude - relying on a few keywords like university name, degree, your ETF experience. Different departments may differ in how resourceful they are with the job market - who hosts the career fairs but limiting outsiders to join, who has more alumni connections, etc.

If we formulate career planning as an optimization problem, the inputs might be monetary return, personal interest, and how good you are at it. The last two are personal so I cannot suggest for you. For monetary return, if you know an industry is declining, my suggestion is don't go. It's fair to say that CS & AI had a stronger beta over the past 20 years, and probably still do. I don't know whether finance is declining (compared to the overall market), but yeah comparing to CS it is relatively declining.

Project ideas: if you have time, I’d highly recommend participating in a trading or data competition hosted by your target firms. Focusing on getting a good rank to impress your interviewers.

hoeneim · 5/2/25

Can you please share your experience in how you obtained your QR position?
What the interview process was like? What was tested?
Just want to have a sense of how competitive to break in at the top tier firms for many of us mortals.

James King · 5/2/25

Thanks for your sharing!
I am a senior undergraduate with no work experience in the field (major in Math and CS, 3.95GPA). I will be going to a top MSFM program after. My goal is to land a job on the buy side, and it seems very important for me to get a good buy side internship next summer. Can you provide some suggestions on how to catch up and build up my resume to get interviews?
I have been doing personal projects to strengthen my background, and I’m wondering whether it helps much or little. Do you think a resume with no work experience but several good personal projects can get an interview at the buy side firms? Is there anything else you would suggest to increase my chances? I have been practicing for interviews, so I’m worried more about how to get interviews at good firms than to pass them.

QuantCoach · 5/2/25

If you don’t mind, could you share the general salary progression of a QR at a top hedge fund as there’s not much transparency for this online outside of new grad pay.

For context, I work as a QT at a top prop shop (JS, Cit Sec, etc.) and my salary progression was 375-475k (new grad) -> 425-500k (second year) -> 600k-1MM (anticipated this year with all the trump news); all total comp in USD. I was wondering if this was a standard progression as I honestly have no clue what a 3-4 YOE QR/QT at a competitor would be making.

qn_username · 5/3/25

hoeneim said:
Can you please share your experience in how you obtained your QR position?
What the interview process was like? What was tested?
Just want to have a sense of how competitive to break in at the top tier firms for many of us mortals.

No such thing as mortals - and I don't think I'm particularly smart.

My interview process included math, stats, coding, and behavioral rounds. At the time, I felt I didn't do well, but in hindsight:

My probability & stats were solid. During one phone interview, I was too naive to prepare scratch papers, but managed to work through a multi-part problem entirely mentally - including a final proof. I ran out of my time so I wasn't confident the interviewer understood my proof. But later when I became an interviewer and used the same question, probably ~1/3 of candidates could complete the first half. No candidate got to the final part proof at all.

I did a dual master degree in stats although my PhD major was not stats. At my school's stats department there was an annual qualification exam open to all stats masters & PhDs. I came on top as an outsider.

My PhD research was solid and easy to explain. One interviewer even complimented the topic choice - which resonated with me and it's a sign he actually understood my research. However when I gave the same job talk at tech firms, not all interviewers asked in-depth questions. I was impressed by how fast & deep hedge fund interviewers could absorb new ideas. Another interviewer impressed me in that he was the first to come up with the sub-problem in my thesis - and I didn't know that. I don't think my interviewers were so chosen that their past work somehow relevant to mine. It's just they are so talented that they had various experience here and there.

That said, I was also rejected by multiple firms. The above experience has survivorship bias. My average performance for sure is worse.

qn_username · 5/3/25

James King said:
Thanks for your sharing!
I am a senior undergraduate with no work experience in the field (major in Math and CS, 3.95GPA). I will be going to a top MSFM program after. My goal is to land a job on the buy side, and it seems very important for me to get a good buy side internship next summer. Can you provide some suggestions on how to catch up and build up my resume to get interviews?
I have been doing personal projects to strengthen my background, and I’m wondering whether it helps much or little. Do you think a resume with no work experience but several good personal projects can get an interview at the buy side firms? Is there anything else you would suggest to increase my chances? I have been practicing for interviews, so I’m worried more about how to get interviews at good firms than to pass them.

Great question. I think many students are in a similar position.

While mass-applying can sometimes work, I feel having a connection has much higher chance to get interviews. You should fully utilize your school's resources: alumni networks, career fairs, and faculty connections to the industry. Network on LinkedIn with thoughtful greetings, etc.

If you have time, I recommend participating in a trading or data science competition, particularly those hosted by your target firms. Good rank can lead directly to interviews and sometimes even making the process easier for you.

qn_username · 5/3/25

QuantCoach said:
If you don’t mind, could you share the general salary progression of a QR at a top hedge fund as there’s not much transparency for this online outside of new grad pay.

For context, I work as a QT at a top prop shop (JS, Cit Sec, etc.) and my salary progression was 375-475k (new grad) -> 425-500k (second year) -> 600k-1MM (anticipated this year with all the trump news); all total comp in USD. I was wondering if this was a standard progression as I honestly have no clue what a 3-4 YOE QR/QT at a competitor would be making.

Your salary progression looks pretty good to me. Compensation largely depends on firm's performance, your team's performance, and your individual performance.

If you're wondering whether your comp is in line with market standards, you can check with headhunters - just keep in mind they tend to over-sell numbers for their own interest. At the end of the day, comp is tied with your PnL contribution, although some firms' formula is less transparent (or discretionary).

Andy Nguyen · 5/3/25

Lately, there’s been a growing trend of students building side projects and showcasing them on GitHub to demonstrate their interest in the quant finance space. While this initiative is great in principle, many students — especially those who haven’t yet started an MFE program — struggle to come up with meaningful project ideas beyond basic ones like an option pricer.

Could you share some project ideas that would be suitable for both pre-MFE and current MFE students?
And from your perspective as an interviewer, do you have any general advice on how candidates can identify or develop project ideas that are both relevant and impactful?

qn_username · 5/3/25

Andy Nguyen said:
Lately, there’s been a growing trend of students building side projects and showcasing them on GitHub to demonstrate their interest in the quant finance space. While this initiative is great in principle, many students — especially those who haven’t yet started an MFE program — struggle to come up with meaningful project ideas beyond basic ones like an option pricer.

Could you share some project ideas that would be suitable for both pre-MFE and current MFE students?
And from your perspective as an interviewer, do you have any general advice on how candidates can identify or develop project ideas that are both relevant and impactful?

Hi Andy, very good question! Here are my two cents:

I agree when someone is new to the area, it's hard to come up with project ideas on one's own. If I were to draw an analogy with PhD training, it's like a first-year PhD student (without help from their faculty advisor or senior PhD students and postdocs) trying to come up with an original research idea that's good enough to publish. This is only doable if the student has read intensively in the field and understands the publication process, or if they get lucky and stumble upon something novel, which is super super rare.

Now, reading and understanding the literature is part of a PhD's job, but it's not expected from undergrads or master's students. So I guess my suggestion is: do a research assistant project with a professor, participate in a well-organized trading or data science competition, or pick a solid course project (check in with TA to make sure it's reasonable). These ensure the project is well-thought-of and may be able to avoid common pitfalls. If a project is flawed at the setup stage, any conclusions drawn will be meaningless - and interviewers may lose interest immediately.

Nelkshake · 5/5/25

qn_username said:
Hi Andy, very good question! Here are my two cents:

I agree when someone is new to the area, it's hard to come up with project ideas on one's own. If I were to draw an analogy with PhD training, it's like a first-year PhD student (without help from their faculty advisor or senior PhD students and postdocs) trying to come up with an original research idea that's good enough to publish. This is only doable if the student has read intensively in the field and understands the publication process, or if they get lucky and stumble upon something novel, which is super super rare.

Now, reading and understanding the literature is part of a PhD's job, but it's not expected from undergrads or master's students. So I guess my suggestion is: do a research assistant project with a professor, participate in a well-organized trading or data science competition, or pick a solid course project (check in with TA to make sure it's reasonable). These ensure the project is well-thought-of and may be able to avoid common pitfalls. If a project is flawed at the setup stage, any conclusions drawn will be meaningless - and interviewers may lose interest immediately.

Can you recommend any reputable trading/data science competitions to join, or ways to find them? You've consistently mentioned those as a way to impress, and it makes sense especially for master's students. For context, I'm entering the Columbia MAFN for Fall 2025 and looking to work as a buy side researcher in statistical arbitrage, though I am open to pursuing a Ph.D in statistics as well.

Thank you so much for being so open here!

qn_username · 5/5/25

Nelkshake said:
Can you recommend any reputable trading/data science competitions to join, or ways to find them? You've consistently mentioned those as a way to impress, and it makes sense especially for master's students. For context, I'm entering the Columbia MAFN for Fall 2025 and looking to work as a buy side researcher in statistical arbitrage, though I am open to pursuing a Ph.D in statistics as well.

Thank you so much for being so open here!

Here’s a long (not comprehensive) list of quant/trading/data competitions:

List of quant trading events and competitions for students

Do you want a job in quantitative trading? I compiled a list of college quant trading events and competitions. If I’m missing any, please comment below.

www.linkedin.com

Hope this helps. You need to check whether those events are recurring.

jando · 5/5/25

Have you seen many QRs with a MSc in applied math? I’m currently working in quant risk at a consulting firm and I’m trying to transition to QR using a masters. Considering doing part iii in Cambridge or MSc in mathematical modelling in Oxford. Unsure if it’s common or even feasible.

MikeLawrence · 5/5/25

jando said:
Have you seen many QRs with a MSc in applied math? I’m currently working in quant risk at a consulting firm and I’m trying to transition to QR using a masters. Considering doing part iii in Cambridge or MSc in mathematical modelling in Oxford. Unsure if it’s common or even feasible.

Part iii is one of the best in the world for this- it would be very feasible. Not quant focused, but signals all the right things.

Tigga · 5/6/25

There has been some weird obsession with buy-side roles lately. I don't know if it comes from online influencers who are selling scammy bootcamps. Maybe people are attracted by the money or the perceived prestige.
90% of all the posts from newbies are asking how to get a buy-side QR or QT roles. I think is this very unhealthy and very distortion of the reality of job distributions between sell-side vs buy-side vs the rest.
I think @qn_username would do the community a great service if he can talk about the unglamorous side of his job. Or clear up any misconception so that people can enter this industry with the right attitude.
Some common myths or misconceptions I see people repeating:
Sell-side pays way more money than buy-side, people are smarter, work-life balance is better, competition is tougher, work is more complicated, etc.
Thanks OP.

qn_username · 5/6/25

Tigga said:
There has been some weird obsession with buy-side roles lately. I don't know if it comes from online influencers who are selling scammy bootcamps. Maybe people are attracted by the money or the perceived prestige.
90% of all the posts from newbies are asking how to get a buy-side QR or QT roles. I think is this very unhealthy and very distortion of the reality of job distributions between sell-side vs buy-side vs the rest.
I think @qn_username would do the community a great service if he can talk about the unglamorous side of his job. Or clear up any misconception so that people can enter this industry with the right attitude.
Some common myths or misconceptions I see people repeating:
Sell-side pays way more money than buy-side, people are smarter, work-life balance is better, competition is tougher, work is more complicated, etc.
Thanks OP.

Great point. I personally don't have a bias toward buy-side vs. sell-side roles. The title of this post was largely borrowed from a previous sharing thread (I'm a senior buy side Quant Researcher. AMA), so perhaps that affects the distribution of the discussion. I agree making "buy-side" a goal in itself is a bit odd. More importantly is to understand what actually motivates you: the kind of work, the impact you want to have, the environment you thrive and enjoy.

One distinction I mentioned earlier here, is that a successful buy-side strategy can decay or lose profitability more quickly, compared to a sell-side business model. Would you agree with that? Beyond that, things like compensation, prestige, or difficulty are all driven by supply and demand.

Tigga · 5/6/25

Thanks for the response. I allured to the sentiment of many new comers believe sell-side is the be all, end all goal. This is a new phenomenon just in the last few years I see here and online. If you look back on QuantNet only 10 years ago, most people would be happy to be a quant in the big banks. Now, as the young kids would say "if you don't make it as a buy-side QT/QR at CitSec/JS, it's a bust". I think social media distorted their reality and they are too naive to realize.
I, as many experienced members on QuantNet, have worked on Wall Street long enough to know a career only good if you enjoy what you do everyday. The moment you hate going to work, no amount of money or prestige will ever make up for it.

I know many members here have a great career on the sell-side and enjoy their work. I think the trick is to find what you are really good at. There are very smart people and plenty of interesting projects on both sell-side and buy-side roles.
A lot of people don't realize how cutthroat the environment on the buy-side is. You already answered in length how to break in but the work starts when you are in. There is a long learning curve to catch up on the buy-side, more than sell-side I would say. The race for research alpha is intense, knowing decay is real. You can prototype and test your models all you want but you only know if it's profitable when it goes live. Then back to drawing board.

I'm a buy side Quant Researcher at a top hedge fund (Jane Street/Two Sigma/AQR/etc). AMA

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