Why a Masters in Finance Won't Make You a Quant Trader

[CN Chen]

http://www.quantstart.com/articles/Why-a-Masters-in-Finance-Wont-Make-You-a-Quant-Trader

Mike's argument makes a lot of sense to me. Quant funds hire candidates who can perform independent research, not simply regurgitate well-known methods within the quant trading community. The best way to get into quant trading is to do a PhD. Thoughts?

 

[seanchen]

I talked a guy working at Bloomberg yesterday, and he told me that from his experiences of dealing with his HF/QT clients, he didn't see as many PhDs as masters. The reason according to him is that firms want ppl who not only can do the work, but also have good people/teamwork skills, which some PhDs might lack due to spending too much time in the academia..

He might not be right, but at least this offers an alternative view on career path in QT.

 

[Andy Nguyen]

@quantstart is based in UK so I don't know if his views are influenced by the specifics of the market there. There are certainly a bigger market for master grads in the US.

 

[quantstart]

@quantstart is based in UK so I don't know if his views are influenced by the specifics of the market there. There are certainly a bigger market for master grads in the US.

Indeed, the post was mostly directed at specific quantitative trading positions (where a PhD is essentially a must), rather than general quant jobs. IB hiring has picked up quite a lot recently in London, although funds still seem to be "consolidating"!

 

[Daniel Duffy]

I talked a guy working at Bloomberg yesterday, and he told me that from his experiences of dealing with his HF/QT clients, he didn't see as many PhDs as masters. The reason according to him is that firms want ppl who not only can do the work, but also have good people/teamwork skills, which some PhDs might lack due to spending too much time in the academia..

He might not be right, but at least this offers an alternative view on career path in QT.

People skills has nothing to do with a PhD. It's got more to do with your upbringing. But with PhD thesis you learn more and more about less and less. These analytic skills can be used in other areas if you are flexible. Many academics are unable to make the shift.

 

[martinbutler]

http://www.mergersandinquisitions.com/quant-hedge-funds/

This looks more US focused and it says basically the same thing.

 

[GoIllini]

http://www.mergersandinquisitions.com/quant-hedge-funds/

This looks more US focused and it says basically the same thing.

There are PhDs in every country. And there is a mild tension between MFEs and PhDs everywhere.

Not everyone who does a PhD is cut out for quant research. Not everyone who does an MFE is cut out for it either. But an MFE or PhD who can also program can sit in a lot of different seats in industry. Some of these seats may pay more than quant research.

An Econ, CS, or Finance PHD is pretty versatile. So is an MFE. Especially if you're not an asshole. Stop worrying.

 

[MNRC]

I had gotten to a first round interview for a "Citi Quantitative Trading and Analysis" summer internship with a master's in computer science. The person who interviewed me only has a bachelor's in math, so it doesn't seem like you need a PhD to be a quant trader--at least not at Citi.

Does anyone know why? Seems very unusual when everywhere else no one seems willing to talk to you if you don't have a PhD or at least an MFE...

Update: just realized this is probably a sales & trading role where they want you to know a little more math.