Calc-based probability is sufficient for the undergrad equity level positions I am aware of. Measure-theoretic probability is usually considered more of a grad level course.
Doing well on IMO/IOI is a recognized marker for high ability in math/CS that helps in getting an interview, but they are not the only recognized markers. Other recognized markers are getting to USAMO or higher or taking “well-known” classes such as Harvard’s Math 55, or the corresponding equivalent at several other colleges, or a number of grad courses like measure-theoretic probability mentioned above. Not really familiar with the impact of iPhO or others.
Remember, all you are trying to do is get the first interview, and once you get to that point, it’s really a matter of how you do.
What’s the difference between a “prop shop” and a hedge fund? Is the former a special type of the latter, and if so, what makes the different from others?
Is there any value for a recent graduate in obtaining the Certificate in Quantitative Finance (CQF)?
It states “ Founded by Dr. Paul Wilmott, the part-time, online CQF program is designed to help established and aspiring professionals advance their quant finance careers. The master’s-level program teaches the theory and practical implementation of the latest quant finance and machine learning techniques used in industry today. ”
Piggybacking on the above question, are there any certifications that could make sense for someone with a bachelor’s degree who wants to move in quant finance or trading?
Here are some other certifications, are any of these worthwhile?
The fundamental difference is that a prop shop trades or invests using its own money, whereas a hedge fund invests using other people’s money.
Prop shops are almost always trading firms. All the profits are theirs, and all the losses are theirs as well. They buy and hold stocks for a short period of time with the anticipation of selling it within a short time for a profit. They are “market makers” in the sense that they are readily willing buyers for any security they cover if the price is right. The play an important purpose in providing liquidity in the markets because they hold inventory ready for sale to longer term investors, such as hedge funds but also traditional long-only investors.
In contrast, hedge funds are investing other people’s money with the goal of increasing it, and they take a cut of these profits.
It’s possible it has value, but I personally never knew anyone with that certificate.
None of those certifications are useful for initial hires into the most competitive quant firms, which look for evidence of raw talent and don’t care if the applicant has zero financial knowledge when hired.
However, as I said earlier, there are plenty of successful quant firms that are less competitive (a good example is Acadian Asset Management) , and that want to hire people with an understanding of the financial markets. Of the programs listed, I would give the most credence to the MFE programs listed (NYU, Columbia, and Berkeley).
Another good alternative that’s superior to anything else listed besides the MFE is the CFA program. There is a well known Boston quant shop that used to (and might still) display the CFA diplomas of their key employees in the reception area.