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Quantitative Portfolio Management vs. Prop Trading?

FEnzo

C++ Certificate with Distinction
Joined
10/17/10
Messages
74
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268
Hey guys. I have been researching for programs and my future career.
Right now, I am kinda confused about the difference between Quantitative Portfolio Management and Prop Trading.
Since prop trading just means trading with your (or your employer's) own money. Does that make portfolio management a branch of prop trading?
Any help is appreciated!
Thanks guys!
 
It is hard to put this into words, but as I understand it:

Portfolio management connotes investment rather than trading or speculation. In that case, it will be a decision more of what assets to hold, for how long, and in what proportion. Holding periods would typically be longer, months to years, and many more assets would be considered.

Trading on the other hand connotes a shorter time horizon and focus on a few securities at a time.

So a portfolio manager will hold say 30-100 stocks over a period of several months to several years.

A prop/hedge fund trader would have open positions in say 5 securities over a period of minutes to weeks.
 
Another difference is portfolio management is a broader field looking at several aspects of forming and managing a portfolio such as trading, risk management, and attribution. Prop trading, as Yike pointed out, typically as a shorter time horizon, and focuses more on trading profits from arbitrage or speculation.
 
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