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In Battle to Recruit New Quants, Hedge Funds Outpay Banks

wsj.com

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Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#51

Post by amiga_500 »

finolex1 wrote: post #49
amiga_500 wrote: post #41

Earlier quoted context omitted.

Because the west is collapsing as rentier work dominates over true wealth creation!

Would you rather that resources be allocated blindly? The fact that some people can live comfortably off their investments does not mean that the very investments themselves do not create wealth. Hedge funds do the latter, it's up to the government and society to decide on the former - i.e. how to distribute this wealth.

Resources are being allocated into a bubble, because every time the market falls the Fed prints money via QE.

Hedge funds aren't looking for companies doing valuable work, they are trying to figure out if Powell will print more, or gaming Bank of England APIs.

The system is not functioning.

Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#52

Post by caymanjim »

fishingisfun wrote: post #40
caymanjim wrote: post #30

Not going to fight the paywall to read the article, but as a developer consultant (not a quant), hedge fund clients pay better across the board than both commercial and investment banks. They tend to be small shops, so it's not really a fair comparison. I've worked for boutique hedge funds, market makers, wealth management funds, pension funds, and two huge investment banks. The small hedge funds pay a lot more and t…

do they also work you more?

No. Working hard is almost always counter-productive.

Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#53

Post by JumpCrisscross »

candiodari wrote: post #37
JumpCrisscross wrote: post #24

Earlier quoted context omitted.

> It's a very wide category The term is historical, not functional. Before option-pricing theory, securities pricing was an art. Yes, there were capital asset pricing theories for fundamental analysts. But at banks, a phone and hustle were the tools of the trade. With Black-Scholes (and put-call parity) came the ability to (a) manufacture options out of other securities and (b) print objectively-wrong quotes. The for…

I thought now with securities with negative interest there were a lot of securities that now had to take that into account and black-scholes is just no help whatsoever there. Is there any answer to it yet ?

> with negative interest there were a lot of securities that now had to take that into account and black-scholes is just no help whatsoever there

Not really. Black-Scholes (and its variants) tend to assume log-normal rates distributions. But that’s just a default, and one chosen with the explicit assumption of positive rates.

Most practitioners have had custom curves for decades; using one that pierces zero is a trivial modification.

Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#54

Post by Scoundreller »

sukilot wrote: post #44
ajaalto wrote: post #29

Quant here. I used to be a seismologist but switched to finance one year ago. This year I earned well below 100k€.

That's likely because you work somewhere that pays in € not $.

But depending on where that is, 5k EUR/month netto goes very far.

Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#56

Post by ajaalto »

ck425 wrote: post #31
ajaalto wrote: post #29

Quant here. I used to be a seismologist but switched to finance one year ago. This year I earned well below 100k€.

Out of curiosity how did you switch to being a quant?

I worked as a software developer before I got the seismologist position. It was not too difficult to interview for various data science positions.

Re: In Battle to Recruit New Quants, Hedge Funds Outpay Banks

#57

Post by markoman »

jgalt212 wrote: post #42
JumpCrisscross wrote: post #16

> recent graduates working at hedge funds made significantly more than their peers working at banks This has always been true, for the entirety of my career. Buy side pays more than sell side for alpha-generating activities. (Sell side pays more for flow and scaling advantages.) This article strikes me as a submarine [1] for Baruch’s program. [1] http://paulgraham.com/submarine.html

seriously, no disrespect to Baruch, but if Baruch grads are making up to $1MM, are MIT grades making $5MM?

Considering that QuantNet ranks Baruch's Financial Eng program #2 (behind Princeton's) and that MIT ranks #10, I'd say you may be jumping to conclusions...

https://quantnet.com/mfe-programs-rankings/

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