Role of education - How many ways are there to get into the quant industry?

  • Thread starter Thread starter dtsomo
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Hi All,

I'm looking to switch from academia (theoretical physics postdoc, PhD 2004) into the quant industry, in London. I've been reading lately all sorts of books and online fora, and have started to form a picture of what one really needs to get into and have a successful career as a quant. So please correct me if I'm wrong, but it seems one needs:

1. A very good / outstanding first degree and PhD in physics / maths / CS.
2. Excellent programming skills, and especially in C++ or similar OOL.
3. Prepare very well for interviews (brush up various areas of math, learn about option pricing etc., and do many brainteasers) and then go for it!

My main question here is this: How much of a leeway is there in relation to these three points?

For instance, one may have a really good education, but not from a prestigious university; e.g., one may want to do postgraduate research in a particular field, which is not done in the large groups of well-funded universities (with correspondingly well-defined research programmes). Or, one may have used extensively a non-OOL for data handling, such as Matlab. Another example would be to have a solid education - although not exceptional - and then go on to do excellent research (excellent in the sense that it may have attracted prestigious awards or funding).

How much would a headhunter, or a bank's HR interview panel, be bothered by such variations on the main theme?

Many thanks - I hope I have conveyed the question as clearly as possible. I am basically looking to find out what I need to do, as I have a lot of experience in certain areas but very little in others!
 
Hello @dtsomo

The three needs you framed are reasonable and worth striving for but it seems you stated those ones as MUST which I personally don't think is right and why:

1)
A very good / outstanding first degree and PhD in physics / maths / CS.
Those fields are pure quantitative and most reasonable for quant career. But you are not obliged to hold PhD in one of those areas to become a quant. There are similar threads describing the neccessity of doing PhD in order to be a quant and this will be a helpful read for you with regard to PhD need.

http://www.quantnet.com/forum/threa...ute-to-becoming-a-real-quant.5670/#post-46434

http://www.quantnet.com/forum/threads/phd-roles-in-finance-industry.4875/

But as you have already one, it is a very good background.

But shortly, you can get into industry without PhD and having some kind of masters degree and related working experience. I'm personally planning to earn PhD not for getting into industry but rather to end up in academia. Generally as I know masters degree (MFE,MBA) is suggested as preparation for PhD programs but again, PhD is not the only way to go if you intent to get into industry. For example if you ultimate goal is not to be well prepared for research in academia, or to get a quantitative research job, then spending 5 years for PhD while you could get the other quant job with MFE is not correct right?! So you should make clear why you want to do PhD and ask yourself: Can I get the similar job with one step lower degree? Since there is a huge opportunity cost involved - TIME.

2)
Excellent programming skills, and especially in C++ or similar OOL.
The language you stated is (I think the most but at least ...) one of the most widely used by quants. Programing is the integral part of quantitative field but OOL is not the only path to follow. The combination of OOL, FL and some database skills is to be considered ideal I think. Functional languages like python, (F# but not that widely used) are powerful programming weapon you can hold while getting into industry. I'm personally more on OOL side yet, but I should disagree that especially OOL is more helpful. It is more widespread though. C++ for example => most used C-based language. You mentioned MATLAB.There is quite a big demand for MATLAB programmers also. One possible combination of languages (at least I intent to get) is =>> C++/Python/SQL. Covers very basic areas of programming and fits with many diversified needs.

3)
Prepare very well for interviews (brush up various areas of math, learn about option pricing etc., and do many brainteasers) and then go for it!
There are technical and specific details you should pay attention to. Depends on interviews, you may not even want to expose theories of option pricing while getting to unrellated job (like fixed income securities - bonds alone).

Now, as for the prestige of the university, this discussion definitely helps:

http://www.quantnet.com/forum/threa...ddicted-to-prestige-colleges.5490/#post-45052

Hope you got the point. Good Luck
 
Hope you got the point. Good Luck

That's great, many thanks indeed, I have a new-found confidence now! I'll just keep scanning suitable entry-level posts which don't mind if one has Matlab experience, and my kind of background, without also having C++ and the like under their belt.
 
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