Path to hedge fund from an exotics derivative trader?
Hi Everyone
I am an analyst in exotics derivative trading(Think of autocallables, Variable maturity swaps, barrier options, Asian options) in a BB, mainly covering equities as underlyings. My main career objective has been to land into a hedge fund/prop trading firm as an analyst/portfolio manager/trader/quant. Went to a prestigious school but only with the undergrad degree.
Recently I learnt that exotics trader do not usually have great exit opportunities compared to Rates/FX/Vanilla options, since our products are more complex , OTC and less liquid. I have configured the following ways to break into HF from my position:
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Leverage my quantitative skills to land in a quant researcher/trader position
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Leverage my knowledge in options to land a option trading hedge fund/prop firm
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Lateral into some asset management position in companies like blackrock and work towards getting accepted into a PM type role in HF.
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Lateral into Macro desks in my bank or other BBs and find opportunities later on.
What do you think of these 4 strategies? Can you suggest other strategies to me?
Much appreciated
much easier for you to get to a hedge fund in the rates space...so learn the rates math and get a job as a desk analyst for a rates options desk (this should be easy for you if you know the math...if not, learn the math...most courses are online and free...or get an exec masters nights and weekend).
Then, after 1-2 years as a rates options desk analyst, you'll most likely get promoted into a trading role on your rates options desk...and after a couple years trading, you'll be in a position to move to a hedge fund, if you perform.
Hi Thanks for your comments
How easy is it to lateral into other banks' rates options desks? Who to network with if you want to make the move? (Seniors or Juniors?)
i always see rates options desks looking to hire a desk analyst. guess why? because a senior trader leaves to a hedge fund, the junior trader gets promoted to senior trader, the desk analyst gets promoted to junior trader, and now the desk needs to hire a new desk analyst...ahh the circle of life.
Ahh That lucky desk!
Anyways, in your opinion, are there any other great desks other than rates options? In case I cannot get into it
Bump! Any new comments ?
Bump! In the recruitment process for exotic equity derivatives trading at one of the global leaders for non-flow products, but I would love to go into prop trading. Why aren't there prop trading firms dealing in exotics?
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