PhD required for Stat Arb / Energy Trading?

[snelson]

Hey guys,

I need some career advice. Here's my story. I'm 27, I've been working at a small consulting firm in energy (load) forecasting for 5 years. We do statistical consulting and deliver automated forecasting systems for the utility industry. I'm kind of stuck in a mid-level analyst position, and the work is interesting but ultimately I'm prevented from moving up in such a small company.

Right now I'm finishing up a M.S. in Statistics a mediocre school (San Diego State University), and my thesis topic is hedging basis risk in weather derivatives, which has applications in the power industry. I started the M.S. primarily to "math up" in preparation for an MFE or PhD.

So I'm trying to figure out what to do next. My options are:
1) PhD Econometrics at UCSD
2) MFE - Berkeley ?
3) Look around for a job

Ultimately I would like to work as an energy quant or move into stat arb.

What do you guys think? Do you think a PhD is necessary for get a job as an energy quant or stat arb? Is it true that all the hardcore research is done by PhDs, and MFEs work on implementation only?

 

[alain]

My advice, start looking for a job while you get ready for a PhD or a MFE next year. The option of going to school is totally yours.

 

[Yuriy]

I want to stress the option of Ph.D. vs. MFE. Its been discussed elsewhere in the forum that Ph.D. takes a lot of effort and leaves you with not much income for many years, and only those who really want it should pursue Ph.D. In your case with stats background, you might have to learn many things from scratch if you do Ph.D. in Econometrics, and that will take 4-5 years.
I think you should not consider doing Ph.D. just because you want to move up to higher ranks. MFE is a better option in addition to looking for another job.

 

[EricFleming]

it's not an apples or oranges thing

Some places will only look for quants if they have a PhD, like SIG - no PhD means no quant job.

Other places are more open minded.

It's not that black and white