The Advantages of Becoming a Quant Analyst

The Advantages of Becoming a Quant Analyst




With the economic downtown of 2007/2008 nevertheless looming over the financial centres of the globe, the outlook for quant jobs has changed dramatically. A career in quantitative finance now method a heavier emphasis on implementation (and consequently programming), with regulation causing a shift towards private funds, away from large edges. The advantages and disadvantages of a typical quantitative role have remained comparatively similar, however. This article studies those advantages, helping you to decide if a quant job is right for you.

A quantitative role is often highly rewarding, from an intellectual standpoint. No doubt you picked mathematics, physics, engineering or computer science (the shared routes into quantitative finance) because you enjoy numbers and working on problems. A financial engineering role is complete of interesting, stimulating challenges right the way from statistical research all the way by to form implementation and optimisation. Traders will be using your models every day in their work and so your contribution will have a direct effect on the firm’s bottom line. If you are PhD trained, you will find those years of grad school highly applicable, as a quantitative role needs individuals who are self-starters and can tackle a problem independently, if necessary.

The shift towards private fund employers has meant that many roles now exist in more casual settings than the typical investment bank trading floor. For individuals who come from a background in research, this can be extremely attractive. The air can be “collegiate” and highly meritocratic. Clocks are not often watched as much as longer-term results, which method more freedom and creativity to pursue models than you might find in a larger corporation.

Many funds tie their operations/implementation departments very closely to their operational research. Execution optimisation is a highly important part of the trade lifecycle within a fund, often requiring teams of PhDs to “get it right”. If you’re more statistically inclined, there are plenty of opportunities within funds to analyze new models. Funds and Commodity Trading Advisors follow myriads of strategies, including Trend examination, Short Term average Reversion and Statistical Arbitrage, to name a few. There are plenty of opportunities to jump directly into these trading opportunities, which can rule to highly lucrative locaiongs.

There is the also the assistance of a high “compensation package”, often in the form of a large base salary (already for juniors) and a substantial bonus. In edges, this remuneration procedure may be more opaque than a fund, but it will often nevertheless be high. The possible for career development is also strong, with many quants entering trading or already upper management. Risk and regulation are huge areas of growth for many firms these days and many quantitative roles are opening up in these areas, so quants are nevertheless considered a “growth market”.




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