Quant trading comp
What is the vague rough range of peak/maximum comp at the peak of a quant's career? What's the probable long-term career NPV of quant trading comp in London, and how does it compare to private equity?
What's the riskiness (of the firm failing due to not making profit / job security) of a London quant career in comparison to a more "conventional non-quant Hedge Fund career"? Are bonuses & P&L successes more consistent & guaranteed / "less volatile"—in comparison to more conventional Hedge Fund investing (how much is relative career downside risk in most lesser quant shops as compared to Hedge Funds?)?
Are u looking at quant PM at hedge fund or quant from the market makers?
Could you tell us the difference in their roles please?
Market makers are liquidity providers (S&T, Jane Street, SIG) whereas Quant HF uses quantitative tactics for prop investing
So you can separate them into 4 large categories 1) Banks s&t div, this is pure market making. Banks are there to provide liquidity to the market they shouldn't be taking prop risk (they will but they have to hide it behind hedging activities/anticipating order flow). 2) prop market makers such as Jane street, these are still market makers but they make the majority of their money taking prop risk using statistical techniques informed by their knowledge of market making activities so the order flow. 3) High frequency trading (HFT) can be market making or pure prop but this is just doing thousands of trades a second where you have a very small edge that gets useful when doing the trade lots of times eg you know at Strat is going to profitable 52% of the time, if you do this a million times a day u should see the edge this is very similar to how casinos make money. 4) quant hfs, they take outside capital to make money on outright bets on the direction of the market but instead of using discretionary decisions eg management team etc they use data to make the decisions.
What about quants in systematic market making desks at banks ?
Quants at banks are different than quant traders (more like quant research). Traditional bank quants will generally help out the trading desks with pricing models, mapping risk, etc. These will usually be PhDs.
How much would most quant PMs earn? And how much is the comp range at the peak of a career at a market maker?
Bump
I have heard SIG Dublin is €150k base. Not sure on bonus
Peak comp, conditional on survival (big condition), is ~$1.5-$2M. You'll have some outcomes that fall on either side of this, but this will be about average. You'll reach peak comp in about 7-10 years. Assuming a 20-year career, and discounting at 3%, that would imply a lifetime NPV comp (starting at $300K and assuming linear growth) of ~$20M.
Most such careers end after 10 years. In that case, the NPV of comp is only about $8M.
Careers in PE have lower comp for the first 10-15 years. But they last much longer - think 30-35 years. Some partner-track positions have NPV lifetime earnings of ~$75-100M.
Why exactly would careers end after 10 years?
This comment hurts my head, why comment if you're this ill informed...
Only speaking for QT at top MMs here. PE figure is mostly just finger in the air.
Please could you be more detailed on what's wrong? I'm here to learn as I know extremely little about this area
What computer/coding/software languages are the bare minimum to get recruited into quant
If you are a good quant, sky is the limit.
You have to be the biggest clown in the world if you think this is a positive development. This will results in similar expected payouts and but higher variance in comp and more tilted towards discretionary bonus vs base pay (which is not good, ceteris paribus you would rather be paid in base).
Don't think a single banker is happy about this except the underperforming MD who hasn't closed a deal in 2 years and know he won't be able to leech off his colleagues as much.
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