Phd in Finance or Financial Engineering?

[Tiasilverman]

Hi guys,
I would like to know what you think about taking a Phd in Finance or Financial Engineering to build a very good career in the investment banking or hedge fund companies. What's the entry position with a Phd in these two worlds? According to you what's the best Phd program between a Phd in Finance and a Phd in Financial Engineering?

 

[F.Fontana]

The importance of the name of the PhD comes after the choice of the topic of research, who is your supervisor and location. The first question is too generic and doesn't make sense to me.

For the next time, I would also suggest to spend more time formulating a question more properly rather then spamming the same topic in several section in the forum.

 

[Xiangyu Gu]

Similar comment but a bit more tender: Only do a PhD if you are serious about research. It's long and painful for people who are not really interested but only long for the title. I wouldn't trade my great time of youth just to get meaningless title. Plus it only marginally increase your chance of getting a good job (if it really does somehow). Alternatively, I would choose a good MFE program to get started with a quant career.

Btw, I don't think there exists PhD in Financial Engineering in the US. Analogous programs should be some tracks under applied math.

 

[Philip_Mitterrand]

You are clearly clueless and need to work in some peripheral area of finance to get your head out of your ass.

Hi guys,
I would like to know what you think about taking a Phd in Finance or Financial Engineering to build a very good career in the investment banking or hedge fund companies. What's the entry position with a Phd in these two worlds? According to you what's the best Phd program between a Phd in Finance and a Phd in Financial Engineering?

 

[wannabemfe]

Mean responses. Jeez!

 

[PhDWill]

Hi. I'm doing a PhD in Finance. My recommendation is to do a good MSc in highly quantitative field - PhD is only good for academia.
I was offered interviews in Hedge Fund's in London after my MSc Accounting, Finance and Strategic Investment, although I need to tell u that the employer knew I was offered a PhD (which was my main goal anyway). Ps. I didn't go to HF interviews (in the end decided that living in central London isn't for me).

Ultimately, the PhD will take vital years, which you could rather use to learn about markets, trading exotic derivatives, utilise various investment strategies etc.

If you want to know more about PhD in Finance let me know.

 

[Tiasilverman]

Thank you for your replay PhdWill. Now I'm studying management engineering and after taking my bachelor degree I want to do a Msc in Finance.
You said that Phd is good only for academia, but I've read there a lot of people taking good positions (associate, senior associate, vp...) in top firms (Mckinsey, Goldman Sachs, JP Morgan...) after their Phd in Finance (I'm talking the Phd's programs of Stanford, Yale, Columbia, Princeton, MIT).
I want to tell you about these programs and what are the possibilities offered to the students of these Phd out of the university world?

 

[PhDWill]

Thank you for your replay PhdWill. Now I'm studying management engineering and after taking my bachelor degree I want to do a Msc in Finance.
You said that Phd is good only for academia, but I've read there a lot of people taking good positions (associate, senior associate, vp...) in top firms (Mckinsey, Goldman Sachs, JP Morgan...) after their Phd in Finance (I'm talking the Phd's programs of Stanford, Yale, Columbia, Princeton, MIT).
I want to tell you about these programs and what are the possibilities offered to the students of these Phd out of the university world?

Yes, I agree. The PhD will not diminish your chances of being offered the interview at a Hedge Fund. If you do highly quant PhD, with focus on markets or HF's then u will definitely get a job. As to the high ranking generals at Goldman etc., it is extremely improbable to estimate how they ended up where they are (sometimes being smart is not enough i.e. knowing people inside matters).
Ps. You are highly ambitious if you are even considering to do a PhD at any of those (aforementioned) universities to be in par with "the generals".

 

[PhDWill]

Thank you for your replay PhdWill. Now I'm studying management engineering and after taking my bachelor degree I want to do a Msc in Finance.
You said that Phd is good only for academia, but I've read there a lot of people taking good positions (associate, senior associate, vp...) in top firms (Mckinsey, Goldman Sachs, JP Morgan...) after their Phd in Finance (I'm talking the Phd's programs of Stanford, Yale, Columbia, Princeton, MIT).
I want to tell you about these programs and what are the possibilities offered to the students of these Phd out of the university world?

Do MSc Finance or MSc Quant Finance and Risk Mngt and start applying to Hedge Funds. I recommend you to trade (live) as well, it will build your knowledge and imply that you really want this career. Financial institutions like to get people who tried trading before, even if you have failed (then they will ask you why you have failed and what you have learned, so be ready for that).

 

[Tiasilverman]

PhDWill thank you for your replay, and I want to ask you: where are you doing your Phd and what do you want to after your graduation?

 

[PhDWill]

PhDWill thank you for your replay, and I want to ask you: where are you doing your Phd and what do you want to after your graduation?

I'm doing it at Newcastle University (UK). NCL is 196th best University in the world (with triple accreditation), it's also a red-brick and in the Russel group. I've done my MSc here as well.

I'm intending to stay in academia, do research in finance and eco (my PhD focuses on Hedge Funds properties and portfolio construction). (y)

 

[Tiasilverman]

Thank you PhDWill for your replay. I have an other question for you: what's the career path (career progression) in the hedge fund firms and in the investment banking firms for a Phd graduated (in Stanford, Yale, Harvard, Priceton)? What's the entry position in these 2 worlds? How is the job condition and the salary in these two worlds?

 

[DavidHilbert]

The progression is roughly as follows.

You will first apply for a Ph.D. programs at Stanford, Harvard, Yale and Princeton. You will say you have no idea what you want to study or what you want to do and you want to do a Ph.D. only because it sounds super cool to have a Ph.D. Also don't forget to say that you are not interested in academia and you only want Ph.D. to get into a top brand name hedge fund afterwards. They will be deeply impressed by your story and all of them will give you the offer with 500K dollars per year scholarship, so you can get used to what life as a hedge fund manager will be like after you finish the degree.

Once you effortlessly finish the degree, be prepared to receive multiple offer from the top hedge funds in the world. In the entry position, you will work maybe 8 hours per day (usually not that much though) and earn 10M dollars in good years and only 5M dollars in bad years. But given the fact that you will have a Ph.D. from top school, you will most likely skip the entry level position and they will make you a managing director right after school. As a MD you will be earning few hundred million dollars every year and your main responsibilities will be flying your private jet between your mansions all over the world, meeting top models, partying and so. If you saw Wolf of Wall Street, you can get a good idea of what your life will be like.

Once you are in this position, don't forget about all the people on this forum who helped you and occasionally invite us for a party in one of your mansions!


... seriously, get your head out of the clouds and get a real life game plan.

 

[PhDWill]

The progression is roughly as follows.

You will first apply for a Ph.D. programs at Stanford, Harvard, Yale and Princeton. You will say you have no idea what you want to study or what you want to do and you want to do a Ph.D. only because it sounds super cool to have a Ph.D. Also don't forget to say that you are not interested in academia and you only want Ph.D. to get into a top brand name hedge fund afterwards. They will be deeply impressed by your story and all of them will give you the offer with 500K dollars per year scholarship, so you can get used to what life as a hedge fund manager will be like after you finish the degree.

Once you effortlessly finish the degree, be prepared to receive multiple offer from the top hedge funds in the world. In the entry position, you will work maybe 8 hours per day (usually not that much though) and earn 10M dollars in good years and only 5M dollars in bad years. But given the fact that you will have a Ph.D. from top school, you will most likely skip the entry level position and they will make you a managing director right after school. As a MD you will be earning few hundred million dollars every year and your main responsibilities will be flying your private jet between your mansions all over the world, meeting top models, partying and so. If you saw Wolf of Wall Street, you can get a good idea of what your life will be like.

Once you are in this position, don't forget about all the people on this forum who helped you and occasionally invite us for a party in one of your mansions!


... seriously, get your head out of the clouds and get a real life game plan.

Very good points. (y)

 

[Tiasilverman]

PhDWill are you agree with the DavidHilbert's post?

 

[PhDWill]

Thank you PhDWill for your replay. I have an other question for you: what's the career path (career progression) in the hedge fund firms and in the investment banking firms for a Phd graduated (in Stanford, Yale, Harvard, Priceton)? What's the entry position in these 2 worlds? How is the job condition and the salary in these two worlds?

First of all, finish your Masters (it will be difficult) and if u want to go further, then come back here. For a PhD you need totally original idea that hasn't been researched/invented before and given the profile of those universities, it better be a good fit in either 4 or better yet 4* journals. Check the publications in Journal of Finance and see if you are capable to produce something like that (PS. My abilities allow me for a publication in 3 star journals, I wouldn't even dream about 4 or 4*).

 

[PhDWill]

PhDWill are you agree with the DavidHilbert's post?

He used an irony, a metaphor, and a pretty good one. Read my previous post and do the research. (y)

 

[Tiasilverman]

PhDWill do you that the associate (not managing director) is the entry level in a hedge fund for Phd graduated?

 

[PhDWill]

PhDWill do you that the associate (not managing director) is the entry level in a hedge fund for Phd graduated?

The entry level in a hedge fund is "Junior Investment Analyst", that's what you would get in London.

 

[Tiasilverman]

PhDWill and after that position? How is the progression and salary? Are there any difference between England and USA for the Hedge Fund firms?