Hedge Funds

[YOU]

<p>How to get into hedge funds? Thru IB like some ppl said, or thru a PhD in a quantitative field? How?</p>

[quag_mire]

<p>in addition to the OP’s question, would it be easier to break into hedge funds via S&T or IBD (my guess is S&T but i keep hearing the contrary from many people)? I understand that there are many different kinds of hedge funds, and one of these types is quantitative funds such as AQR, D.E Shaw etc. Do such funds recruit mainly from S&T or IBD?</p>

[Lacero]

<p>This is most often the best way,</p>

<p>[How</a> to get into hedge funds.](<a href=“The Times & The Sunday Times: breaking news & today's latest headlines”>The Times & The Sunday Times: breaking news & today's latest headlines)</p>

[johnnyhoward3]

<p>Ultimately I want to go into hedgefunds, but I feel I might regret doing the 100 hour work weeks in IBD that seem a pre-requisite…Can you get in after a couple years in trading?</p>

[quag_mire]

<p>eh, I was expecting a hella lot more responses to this thread lol</p>

[Lacero]

<p>Hedge funds are notoriously secretive. You may need to ask people in industry.</p>

[lakhannv]

<p>I hope Mr. Israel gets to live a little before he gets caught. I give him respect for having the balls to try this.</p>

[Lacero]

<p>idk about trading, in 10 years traders will be an extinct breed.</p>

[quag_mire]

<p>^ why is that?</p>

[Lacero]

<p>Like many things these days, computers will take their jobs.</p>

[karot]

<p>Just look at hookers.</p>

[Lacero]

<p>^^ Really?</p>

[quag_mire]

<p>this thread fails</p>

[ccviabank]

<p>lol, i would think thru IBD with MBA??? I dont know if its widespread hiring Phds over IBD MBA, I know there are firms that hire Phds but not so many</p>

[C-Revs]

<p>It depends what kind of Hedge Fund, like pretty much anything else. Some are quantitative, some are fundamental, some are a blend. You can definitely get in through IBD or S&T though. That’s not the determining factor.</p>

[Lacero]

<p>It does.
On another issue,

In 2006 at the London Stock Exchange (LSE), over 40 per cent of all orders were entered by algo traders, with 60 per cent predicted for 2007. US markets and equity markets generally have a higher proportion of algo trades than other markets, and estimates for 2008 range as high as an 80 per cent proportion in some markets. This trading method is encouraging liquidity and is driving massive volume growth, with LSE hitting 732,000 trades a day during a volatile period in March.</p>

<p>Progress Apama’s Bates comments: ‘This is the future of trading. The percentage will grow tremendously, and there are some predictions that it will reach 50 per cent in a couple of years, and eventually approach 100 per cent of the market. The use of automated algos is growing.’

</p>

<p>

The London Stock Exchange estimates that around 40% of its electronic order book is now carried out by algorithmic trading programmes. A recent study by the IBM Institute of Business Value predicted that for every 40 traders in a financial asset class only four would remain by 2015.

</p>

<p>I’m guessing those four will be quants or scientists/engineers.</p>

<p>Computers are already faster and sometimes more efficient in trading, and soon with breakthrough technologies in AI, computers will be able to make better decisions as well. Soon machines will be able to skim through a news article (text mining) and take decisions based on the information within it.</p>

<p>[FT.com</a> / Home UK / UK - City trusts computers to keep up with the news](<a href=“http://www.ft.com/cms/s/0/bb570626-ebb6-11db-b290-000b5df10621.html]FT.com”>http://www.ft.com/cms/s/0/bb570626-ebb6-11db-b290-000b5df10621.html)</p>

<p>[Artificial</a> intelligence applied heavily to picking stocks - Business - International Herald Tribune](<a href=“http://www.iht.com/articles/2006/11/23/business/trading.php?page=1]Artificial”>http://www.iht.com/articles/2006/11/23/business/trading.php?page=1)</p>

<p>[Computers</a> - the death of the trader - WhatPC?](<a href=“Computing - The UK's leading source for the analysis of business technology”>Computing - The UK's leading source for the analysis of business technology)</p>

<p>[Text</a> mining](<a href=“https://www.financialworld.co.uk/Archive/2007/2007_10oct/Features/text_mining/12876.cfm]Text”>https://www.financialworld.co.uk/Archive/2007/2007_10oct/Features/text_mining/12876.cfm)</p>

[barrons]

<p>Meanwhile the HF landscape is growing bleaker. Pretty soon you will be just as well off at a mutual fund.</p>

<p>[Shakeout</a> Roils Hedge-Fund World - WSJ.com](<a href=“http://online.wsj.com/article/SB121364877315978651.html?mod=fpa_mostpop]Shakeout”>http://online.wsj.com/article/SB121364877315978651.html?mod=fpa_mostpop)</p>