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    What's the most common route into fund management...

    Research analyst route, or trading route. I understand it depends largely on what you trade, and obviously the requirements of the fund.

    For entry into say fixed income, do banks usually seek those with an exclusively quantitative background econ, maths grads? and does the same go for currencies and commodities as they often come under the FICC heading...

    cheers for replies, as at the moment am trying to weigh up a huge decision.
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    Alot that go into hedge funds are ex - prop traders, as it is a role..... although many traders and analysts do end up in hedge funds, just need to show (if trader) a good track record and positive p&L.........and alot of Funds hire people who have traded the specific securities for a number of years, I.e global macro fund may hire an currency trader.
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    (Original post by CityTrader)
    Alot that go into hedge funds are ex - prop traders, as it is a role..... although many traders and analysts do end up in hedge funds, just need to show (if trader) a good track record and positive p&L.........and alot of Funds hire people who have traded the specific securities for a number of years, I.e global macro fund may hire an currency trader.
    yep, but you can't just start up as a prop trader...plus a lot of banks have disposed or severely reduced their prop activities.
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    (Original post by gangst)
    yep, but you can't just start up as a prop trader...plus a lot of banks have disposed or severely reduced their prop activities.
    Yer to be a prop trader, you do have to work your way up.........and the prop traders that have been laid of under new regulation have set up their own hedge funds....still the best route of getting into a fund depending on what you want to do is 10+ or so years working for a tier 1, having a good track record, having a basket of contacts and networking big time.
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    (Original post by CityTrader)
    Yer to be a prop trader, you do have to work your way up.........and the prop traders that have been laid of under new regulation have set up their own hedge funds....still the best route of getting into a fund depending on what you want to do is 10+ or so years working for a tier 1, having a good track record, having a basket of contacts and networking big time.
    nah you don't work your way up become a Prop Trader, there are numerous prop firms that will employ you provided you put down some Capital. As for the top Banks, if your making money they will not hesitate to place you amongst there 'prop casino'. it seems that most top Banks will be starting up there own Prop firms anyways.
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    (Original post by A_clizzy)
    nah you don't work your way up become a Prop Trader, there are numerous prop firms that will employ you provided you put down some Capital. As for the top Banks, if your making money they will not hesitate to place you amongst there 'prop casino'. it seems that most top Banks will be starting up there own Prop firms anyways.
    I was referring to banks tho, where you DO have to work your way up!
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    (Original post by gangst)
    What's the most common route into fund management...

    Research analyst route, or trading route. I understand it depends largely on what you trade, and obviously the requirements of the fund.

    For entry into say fixed income, do banks usually seek those with an exclusively quantitative background econ, maths grads? and does the same go for currencies and commodities as they often come under the FICC heading...

    cheers for replies, as at the moment am trying to weigh up a huge decision.
    you point out the problem in answering this question...there are so many variables. where you work, who you work for, what they do, who their customers are, how big they are, who works there already...with banks, you could say that they broadly look for more quantitative backgrounds but that is because they operate in a different area. if you work in fund management in a bank, it is likely it won't be in the same division as commod/curren as your doing something completely different to trading as your selling something to someone (someone isn't going to buy a fixed income/commod fund). however, there are as many exceptions some banks may offer niche funds (altho thats fairly unlikely) maybe like a "all-in-one" asset allocation fund (AQR offers ones like these and I think GS global alpha did this as well) or they may do prop (more unlikely) or they may do something like Goldman Special Situations Group which is a bit like prop but not really...so it depends...the only thing you need is enthusiasm.
    but broadly more institutional areas are moving towards more numerical areas whilst retail money is staying more qualitiative (in the UK) however, if you look at the US this has begun to change with funds like AQR and I would say this is eventually going to happen here too although slowly as management at most retail areas outside of banks is probablly pretty incompetent in these new areas. its not so much quant as computers tho in my opinion.

    (i would say characterizing HFs as mostly like Brevan Howard or SAC (i.e as a group of prop traders runnin their own books) is probablly unhelpful. fund management, in terms of assets under management, isn't really like this)
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    (Original post by crcr)
    you point out the problem in answering this question...there are so many variables. where you work, who you work for, what they do, who their customers are, how big they are, who works there already...with banks, you could say that they broadly look for more quantitative backgrounds but that is because they operate in a different area. if you work in fund management in a bank, it is likely it won't be in the same division as commod/curren as your doing something completely different to trading as your selling something to someone (someone isn't going to buy a fixed income/commod fund). however, there are as many exceptions some banks may offer niche funds (altho thats fairly unlikely) maybe like a "all-in-one" asset allocation fund (AQR offers ones like these and I think GS global alpha did this as well) or they may do prop (more unlikely) or they may do something like Goldman Special Situations Group which is a bit like prop but not really...so it depends...the only thing you need is enthusiasm.
    but broadly more institutional areas are moving towards more numerical areas whilst retail money is staying more qualitiative (in the UK) however, if you look at the US this has begun to change with funds like AQR and I would say this is eventually going to happen here too although slowly as management at most retail areas outside of banks is probablly pretty incompetent in these new areas. its not so much quant as computers tho in my opinion.

    (i would say characterizing HFs as mostly like Brevan Howard or SAC (i.e as a group of prop traders runnin their own books) is probablly unhelpful. fund management, in terms of assets under management, isn't really like this)

    cheers for your reply, very informative.

    basically...i'm trying to assess the potential of taking an offer which i hold from lse for economic history.

    trading/ fund managemet is what appeals to me, however, i fear that career progression would be severely limited by the lack of quantitative nature of the degree....

    is there a glass ceiling for BA's? theoretically would working for SAC, GLG, Citadel etc, be highly unlikely with BA econ History from LSE?

    sorry to bombard you with q's but your reply was intriguing.
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    (Original post by gangst)
    cheers for your reply, very informative.

    basically...i'm trying to assess the potential of taking an offer which i hold from lse for economic history.

    trading/ fund managemet is what appeals to me, however, i fear that career progression would be severely limited by the lack of quantitative nature of the degree....

    is there a glass ceiling for BA's? theoretically would working for SAC, GLG, Citadel etc, be highly unlikely with BA econ History from LSE?

    sorry to bombard you with q's but your reply was intriguing.
    to be simple...i do economic history at uni, its the best degree for "fund management" in the UK, its the perfect combination of quant/qual and deals with the interesting questions in economics without getting bogged down in theory. its not as cool as finance tho so some employers might be funny but i wouldn't work for anyone who was that moronic so everyones happy (LSE "name" will get you far). the job thing is complex tho...i got rejected from everywhere apart from GS GIR...altho tbh there was only one place i actually wanted to work at and that wasn't it.

    your still confusing me a bit...AM/trading...they couldn't be more different...GLG, SAC, Citadel couldn't be more different... if you want to do trading, econ hist obviously is not right. trading is becoming more quantitative as the computers take over. AM in the UK is probablly gonna stay in the freezer for a long time so its perfect for that but it still depends, buyside jobs vary far more. if you have any more questions about Econ Hist or AM, PM me but you clearly need to work out what your best at.
 
 
 
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