How much prop trading experience do hfs normally consider good enough for a low level PM role?

Albertsons rvUd7211
May 4 10 Comments

Normally, becoming a PM requires 20 years of rising through the analyst ranks. If you have a successful quant prop trading strategy that has been working for a few months or years, does that qualify you for a PM role? And, related question: is prop trading going away and getting replaced by hedge funds?

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TOP 10 Comments
  • Google Aphrodite
    Portfolio manager is based on dealing with client flows, whereas a top prop trader becomes desk head. Also, size in prop is entirely different from large hedge funds in the multi-billion AUM range. Yes, risk management is similar, but the strategies may not scale as well.
    May 4 6
    • Albertsons rvUd7211
      OP
      Is there any mobility within prop trading? Can I start with these guys https://mavericktrading.com/ppc/?gclid=CjwKCAjw8LTmBRBCEiwAbhh-6Ok4lxHGlMVrjI-w5B5Vd4Q_QSOnxmqshRH5lqcND_rTn6DbkP_qYRoClR0QAvD_BwE and move to a real firm?
      May 4
    • Google Aphrodite
      (Risk-adjusted) PnL is the only measure of success as a trader. Of course, you would want an educational environment with the best infrastructure possible to maximize chances of survival. I highly recommend staying away from arcade/bucket shops. The base salary you are paid is proportional to the firm's estimate of a new hire's likelihood of making it through.
      May 4
    • Albertsons rvUd7211
      OP
      Are there any real companies that accept people with non-relevant (programming) experience? How much experience?
      May 4
    • Google Aphrodite
      Yes, experience is generally not needed for entry level trainee/analyst roles - e.g. at Jane Street, Optiver, SIG. You need to be able to solve quick undergrad level probability questions, fermi problems, brainteasers, and mental math.
      May 4
    • Albertsons rvUd7211
      OP
      The point is to avoid analyst roles and become a trader, and bucket shops seem the only way for that.
      May 4
    • Google Aphrodite
      You can trade as an analyst as well, but usually only after some training and in smaller lots. Sent you a DM.
      May 4
  • Two Sigma fJSt37
    FWIW, none of this really applies to Two Sigma - we don’t really have PMs like you’re thinking. While it might help a bit in an interview,I don’t think we’d especially care a ton about a few months or years of a tiny prop strategy.
    May 4 2
    • Albertsons rvUd7211
      OP
      How big would it have to be for you to care? Aren't the prop traders who make $5m desired by hf?
      May 4
    • You can try the “arcade” style firms like meillenium or something. But you can kiss two sigma and jane st goodbye.

      Also if you make $5mn net, why are you still looking for a job? Lol
      May 5

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