trader vs portfolio manager

[jessezhang]

Hi, all,

I am new here, and hope to get your guys' help.

I know this could be wrong, but I consider that the main role of both trader and portfolio manager is to analyze the derivatives and handle with price, strategy and risk, etc.

Since I am new to this field and wish to pursue the MFE in the future, I am deadly to know these two types of jobs. What are the essence and differences of these two?

Thank you in advance. And happy new year to you all ^^

 

[Andy Nguyen]

If you are a trader and have your own book(s) to manage, you are de facto portfolio manager. Portfolio managers and traders both trade to make a profit for their book/desk/firm.
PM have more managerial duties to tend to such as meeting with clients, risk managers, others. Some traders only have to trade as part of a group.
Differences can be in compensation. It's typical for PM to get salary and a percentage of the P&L while most traders get salary + bonus.

It's very misleading to try to generalize the differences using these titles. It depends on each individual's specifics.

 

[jessezhang]

If you are a trader and have your own book(s) to manage, you are de facto portfolio manager. Portfolio managers and traders both trade to make a profit for their book/desk/firm.
PM have more managerial duties to tend to such as meeting with clients, risk managers, others. Some traders only have to trade as part of a group.
Differences can be in compensation. It's typical for PM to get salary and a percentage of the P&L while most traders get salary + bonus.

It's very misleading to try to generalize the differences using these titles. It depends on each individual's specifics.

Thank you, Andy. I will do more researches and really appreciate your help.

 

[Shweta]

If you are a trader and have your own book(s) to manage, you are de facto portfolio manager. Portfolio managers and traders both trade to make a profit for their book/desk/firm.
PM have more managerial duties to tend to such as meeting with clients, risk managers, others. Some traders only have to trade as part of a group.
Differences can be in compensation. It's typical for PM to get salary and a percentage of the P&L while most traders get salary + bonus.

It's very misleading to try to generalize the differences using these titles. It depends on each individual's specifics.

Andy Nguyen - "If you are a trader and have your own book(s) to manage" --> Does this refer to a prop trader (both buy-side & sell-side prop trader ?)

Thanks !

 

[Andy Nguyen]

Andy Nguyen - "If you are a trader and have your own book(s) to manage" --> Does this refer to a prop trader (both buy-side & sell-side prop trader ?)

I should have clarified that the context of my post was on a "sell-side quant prop trading" environment which I had some familiarity with. Flow desks are different from prop desks.
Things on the buy-side institutions are different where portfolio manager is responsible for all aspect of specific portfolio(s). He will have traders working for him to executing trades.
And then there are hedge funds.
It's clear the functionalities and roles for each position are different from firm to firm. There is no clear cut answer for a specific role across the industry.

 

[Shweta]

Is there a thread which talks about the general responsibilities AND exit opportunities for:-

1. Flow trader in investment bank
2. Prop trader in investment bank
3. Trader in hedge fund
4. Trader in prop trading firm
5. Trader in an asset management firm

Thx !!

 

[kuwantfin]

I should have clarified that the context of my post was on a "sell-side quant prop trading" environment which I had some familiarity with. Flow desks are different from prop desks.
Things on the buy-side institutions are different where portfolio manager is responsible for all aspect of specific portfolio(s). He will have traders working for him to executing trades.
And then there are hedge funds.
It's clear the functionalities and roles for each position are different from firm to firm. There is no clear cut answer for a specific role across the industry.

Andy, it seems that traders at Asset management(AMs) and hedge funds have different roles. So does the role of a trader at AM involves just doing what the PM says or can traders they take there own views also?