# Offered role in 'operations' at a hedge fund. A good middle step?

#### watchingconan

##### New Member
hello quantNET

i work in audit and was now offered a role in operations at a hedge fund. the fund is an off shoot of a fairly well known hedge fund. the parent has $50bn+ AUM, the hedge fund i've been offered has$5bn+.

is working in ops a good way to 'learn the trade' so i can hopefully join an actual trading desk? is this common?

#### Onegin

##### Member
C++ Student
It's not the direct path; you could learn as little as trade settlement, or as much as derivative accounting and collateral management which would be very useful. People do make the hop, but its becoming less common than it once was; typically you'll have better luck the smaller the firm. . .

#### watchingconan

##### New Member
It's not the direct path; you could learn as little as trade settlement, or as much as derivative accounting and collateral management which would be very useful. People do make the hop, but its becoming less common than it once was; typically you'll have better luck the smaller the firm. . .

from what i understand the firm has about 150 staff worldwide. 60 in the office that i've been asked to join.

why is derivative acct'ng and collateral mgmt more important than settlement? also do 'operations' cover all or only some part of these topics?

#### Onegin

##### Member
C++ Student
the scope of operations varies from firm to firm, but generally covers activity related to the accounting, reconciliation, and treasury functions within a hedge fund. Sometimes you'll get performance thrown in; probably the info is in the job description.

I wouldn't say deriv acct'ng / collateral management are more important than settlement, but they do seem to align with your goals (at least as I undesrtand them). You'd learn how trades are financed, how to value the different instruments, and considerations made when choosing instruments.

#### watchingconan

##### New Member
great thanks for the info.

i understand that the fund has a sharpe ratio of above 4. is that good? the role is more operations with the view to becoming more backtesting risk p/l and volatility. i'm still in two minds whether i should take this and if it's a good step to get into quant trading.