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Quant PM offer vs Senior QR offer

wanderful

Joined
5/13/23
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2
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Helping my brother to ask an offer choice question (Since he doesn't use the platform.)

He previously worked at a smaller quant fund for 4 years and was quite successful with 2 to 3 mature quant strategies produced by him. But that fund does not have good compensation, so he decided to interview for larger fund. He recently got an offer from a multimanager platform as a quant PM.(Think of Millenium or Balyasny,) Another offer is a senior quant position from a quant firm (Think of Citadel Securities or DE Shaw).

Both offers have roughly the same package. But each has pros and cons:

  1. The PM offer can initially offer him 1 Headcount, and if he is successful, headcounts can expand to around 7-8. In that way, he has a group of quants working for him and certainly has a faster cycle for producing new strategies. However, if he cannot produce solid PnL within one year or two, then potentially he will be fired. And past good performance does not necessarily indicate the future, so there is such a possibility that strategies are not working for the one year period. There is much pressure but also large upside.
  2. The Senior QR offer can allow him to participate in quite different projects, and may have wider asset class exposure. He can also collaborate with much more senior quants to hone up the skillsets. If he generate PnL, he will also be compensated accordingly. And even if no PnL in first or second year, likely he will not be fired easily. However, there is no such a concept of having a group working for him in such a scenario. So even if he did well, he will be working on his own and producing strategies on his own. The cycle of producing strategies can be slower.
He has thought of the pros and cons, but still hesitating. Given such scenario, what will you choose and why? Much appreciated!
 
I was presented with the same choice a few years ago and picked #2. I think it comes down to my asset class (equities--which is becoming a rat race) and my own risk appetite at the time.

Would I have picked 1 if I could go back in time? Yes, my strategies made a killing in the last few years 😂.
Am I content with what I picked knowing the counterfactual? Yes, I enjoy the full range of responsibilities and learning since then.
Would I still want to be a pod PM in the future? Probably not. I personally think the business model work well for Ken Griffin and not necessarily at the PM level unless you are the top of the crop. I would rather spin out on my own.

Would be happy to continue the conversation in DM.
 
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