Masters Vs FT

Hi I go to a target in the UK and have an upcoming internship at BB but also a grad offer from a small prop shop in APAC. I've also received an offer for the mathematical finance course at Imperial for the upcoming year. My end goal is hopefully to end up at a hedge fund or somewhere on buy side as trading (maybe even more quant like) and I was wondering if this masters was useful, and if it's even realistic to think of jumping to a more quant like role in those funds or should I just focus on a macro fund if I end up going FT trading at BB? Thanks

 
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Small prop firm in APAC is not very informative so it's going to be difficult to give good advice. Profitability of small prop firms varies massively which has a major impact on the firm economics and pay/career although most firms don't disclose that information.  Presumably the offer from the prop firm gives some indication of initial comp which you can compare with BB comp (typically more standardized and easier to find online or via classmates). If you want to live in APAC where the small prop firm is that is one advantage of going there directly but if you prefer staying in UK it's likely much more difficult to come back after working in a small APAC prop firm. In APAC I think there are a reasonable number of small trading firms/hedge funds that are competitive/well known in their local markets but not elsewhere which makes  moving internationally tough. 

 

I'm not very familiar with HK options markets but including warrants and other similar derivatives I think it's a sizable market. To the extent hedge funds trade those products they may look to hire traders from prop trading with that sort of expertise although many of those hires may be mostly execution related. Unless the small prop firm has a lot of client flow to trade these products the firm probably has some expertise pricing these products which is different from pure market making. 

 

Thanks for your insight. One last thing, would you think a masters would help at all in the prop shop or help with jumping to some fund in the future? Would you say it's probable someone who has just purely trading experience to be accepted to a more quantitative role in these funds because of education background?

 

I think for experienced hires whether they have a masters or not makes little difference. Often the lines between trading and quant work are kinda blurry in prop shops and I would think for most people trading or somewhat quantitative trading is at least as attractive as more pure quant work. If you want to do more statistical quant work in equities this prop firm is likely a poor choice but depending on the structure of the firm and your role you may get to do a fair amount of options pricing/modeling which is similar to options quant work 

 

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