Is it ethical to work for a hedge fund?

Feb 2 38 Comments

My main issue with them is that they don't add value really, all prediction work is profiting from the misery and fortunate of others.

I know that a lot of of the financial markets work this way, but for swe there is the factor of a purpose, a product that you provide and others find useful.

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TOP 38 Comments
  • New tLFu71
    You liberals really live in one hell of a nutty fantasy land. Ethics of making a ton of cash working at a hedge fund? Good god.

    And no you shouldn’t work there cause you’ll 100% be fired in no time from your inability to hack it in that environment based on this post alone.
    Feb 2 5
    • OP
      I was approached by a recruiter which made me think about it....
      Feb 2
    • Facebook сynica.ly
      OMG YEA LABOREALS ARE DUMB!!! xD. US CONSERVATALS ARE THE REAL INTELLIGENT!!!!!!!!!
      Feb 2
    • New / Eng / /
      I have a feeling hedge fund folks are neither LABOREALS nor CONSERVATALS. They run models 24x7 and make money and do not care much for propaganda. Propaganda is for plebs.
      Feb 2
    • Facebook сynica.ly
      ^ I was responding to the guy who made the “liberals” comment, not OP
      Feb 2
    • New / Eng / /
      fu71 made comments about liberals I can somewhat agree with. He did not say anything about conservatives tho.
      Feb 3
  • Snapchat MAGA2020!
    If you want purpose, come over to Snap.
    Feb 2 4
    • SpaceX / Eng plokjimnb
      Lol
      Feb 2
    • Is MAGA2020 a troll name or are there really trump supporters at snap?
      Feb 3
    • General Motors / Eng RCwa76
      I'm sure there are trump supporters at any company. Have you seen that article about all the secret white nationalists in Seattle?
      Feb 3
    • Snapchat MAGA2020!
      @GM how the MAGA community over there?
      Feb 3
  • Expedia Ytdj51
    Dumbest thing I’ve read in quite a while. Go work for a nonprofit if you want to change the world. Otherwise it’s all about productivity and profit
    Feb 2 4
    • OP
      Expedia provides a solution that people use, funds just bid the show!
      Feb 2
    • Expedia Ytdj51
      I don’t think you quite understand how markets work. Hedge funds absolutely provide a product that people use. Hedge funds manage money for large pension, retirement funds (many of which are pools of people that aren’t rich), provide liquidity for IPOs. Many make markets which gives you and everyone else liquidity so you can instantly sell your shares of stock whenever you want. They buy fed government and municipal debt that helps everyone. Investment funds are not worthless entities that are morally wrong and hurt people. You can make a case that high frequency trading firms do not really add anything, just scalp but even that has holes. All I’m saying is, they provide value also and it’s not all evil/immoral people as many politicians like to argue.
      Feb 2
    • OP
      I see what you are saying, my mental image of HFs is that the are just fancy high frequency traders that focus on short term gains, but I see your points
      Feb 2
    • Microsoft / Eng Dr. 13
      @expedia, for those people who hire them to manage their money... Couldn't those people just buy a total stock index fund from Vanguard since like 98% of professionals can't beat the market? Or maybe I'm just thinking of professional managers who have some weird fund that they claim can beat the market?
      Feb 2
  • Two Sigma mQzQ05
    Think of hedge fund as providing another way for people to invest their money. A lot of educational institutions, pensions funds, and companies invest a portion of their money in hedge fund to diversity. And at the end of day, you can always donate a portion of your income if you as so inclined.
    Feb 2 4
    • Bloomberg / Eng
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      To be fair, when hedge funds are good when everyone else is bad and bad when everyone else is good.
      Feb 2
    • OP
      A good point, pension funds do invest in many HFs. How is work in TS? What kind of things SWEs do?
      Feb 2
    • Two Sigma mQzQ05
      Shuffling data.
      Feb 2
    • Two Sigma icReWI
      SWEs make sense of the chaos that is financial markets and bring stability to it here through our ability to build platforms that trade fast and see the future.
      Feb 2
  • Chase / Mgmt grizzlyed
    yeah man, go work at Facebook of you are worried about ethics....oh wait...shit
    Feb 2 1
    • New / R&D zorkan
      😂😂😂
      Feb 2
  • LinkedIn hhoomm
    I don't know what you're talking about. Ethics are about the consequences of your actions and choices. "Profiting from" things isn't unethical, unless you're causing harm.

    Further, hedge funds do create positive value for the world. They help allocate capital to its most productive uses. But if you don't find the mission compelling, don't work there.
    Feb 2 1
    • OP
      Good points! This is the first sane answer so far
      Feb 2
  • Uber CCompany
    What value would you add increasing the ad click rate for Facebook or Google? Or even bringing the driver income down at Uber?
    Feb 2 0
  • E*Trade zhavn
    Hedge funds, traders, HFTs do add value in the form of transfer of risk (look up futures contracts for example) and providing liquidity (market makers take both sides of trades, profiting on the spread)
    Feb 2 1
    • OP
      Thanks for these pointers
      Feb 2
  • Two Sigma icReWI
    The Nobel foundation invests their money in our funds, so if you like the Nobel prizes then working for a hedge fund should feel pretty noble.
    Feb 2 1
  • Two Sigma ms1000001
    I had this question to myself before joining a hedge fund. My answer is that many non-profit organizations and pensions rely on those hedge funds to operate. Hedge funds can be considered as financial “services” to help those organizations. This is the bright side of thinking
    Feb 2 1
    • Bloomberg / Eng
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      Personally, If I ran real hedge fund (not one that just bilked fees), I would out my money where my mouth is and not charge a penny in management fees and take a tiny cut of gains for nonprofits.
      Feb 2
  • New Duwop
    Blind is not the place to ask this kind of question. As you know, TC or GTFO
    Feb 2 2
    • OP
      TC 120 yoe 3
      Feb 2
    • New Duwop
      What I meant is all people care about here is $$$
      Feb 2
  • Genentech elffy
    Go where your opportunity and development can be. If you don't like it, find another job
    Feb 2 0
  • Wells Fargo techgeeksf
    Give your job to me.
    Feb 2 0
  • Bloomberg / Eng
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    Hey, if it means helping some filthy rich person unload a few percent in my pocket, why not? Clearly they don't need it.
    Feb 2 0

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