Is it possible to move from trading at a bank to a hedge fund?

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    Can one move from a trading role in say commodities or rates and then move to a hedge fund, gain experience and become a portfolio manager? Or is this role only for former analysts from IBD?

    The reason I'm asking is because I often see hedge funds mentioned as an exit opportunity for IbD analysts.
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    anything is possible
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    (Original post by gr8wizard10)
    anything is possible
    But seriously, is it?
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    (Original post by Ladbants)
    But seriously, is it?
    http://news.efinancialcareers.com/uk...-traders-fail/

    http://news.efinancialcareers.com/uk...tment-banking/
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    The first article is complete dog poo.
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    (Original post by Ladbants)
    Can one move from a trading role in say commodities or rates and then move to a hedge fund, gain experience and become a portfolio manager? Or is this role only for former analysts from IBD?

    The reason I'm asking is because I often see hedge funds mentioned as an exit opportunity for IbD analysts.
    Yes.

    There are different types of hedge funds. Not all hedge funds are based on value investing.

    gr8wizard does something in IB so his answer was luke warm like that - he wants to believe that hedge funds only hire from IBD - which is nonsense.

    If you can prove yourself to be a consistently excellent prop trader you'll be extremely attractive to certain types of hedge funds. eg. macro

    Regarding those two articles - look, the truth is that to be a good trader is extremely difficult no matter where you are. The harder something is, the more people fail, the more articles you get like this. If you're really good, you'll succeed anywhere.
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    (Original post by Ladbants)
    Can one move from a trading role in say commodities or rates and then move to a hedge fund, gain experience and become a portfolio manager? Or is this role only for former analysts from IBD?

    The reason I'm asking is because I often see hedge funds mentioned as an exit opportunity for IbD analysts.
    Yes.

    There are different types of hedge funds, there is not just one almighty 'HF'. Bankers usually end up in funds that focus on value based investing strategies (ala deep value, fundamental, merger arbitrage, L/S equity etc) where analysis skills and experience with trawling through financials is paramount.

    Traders in specific desks will tend to map to funds that trade a strategy which incorporates their product (i.e. rates/FX to global macro) or where the fund only focuses on the product they trade.

    The shops that take traders on tend to be more risk management/trading heavy than the value funds.

    Ofc, it's not easy to branch into HFs but so long as you've got what it takes don't see why you can't.

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    (Original post by MFStarboy)
    Yes.

    There are different types of hedge funds. Not all hedge funds are based on value investing.

    gr8wizard does something in IB so his answer was luke warm like that - he wants to believe that hedge funds only hire from IBD - which is nonsense.

    If you can prove yourself to be a consistently excellent prop trader you'll be extremely attractive to certain types of hedge funds. eg. macro

    Regarding those two articles - look, the truth is that to be a good trader is extremely difficult no matter where you are. The harder something is, the more people fail, the more articles you get like this. If you're really good, you'll succeed anywhere.
    (Original post by Princepieman)
    Yes.

    There are different types of hedge funds, there is not just one almighty 'HF'. Bankers usually end up in funds that focus on value based investing strategies (ala deep value, fundamental, merger arbitrage, L/S equity etc) where analysis skills and experience with trawling through financials is paramount.

    Traders in specific desks will tend to map to funds that trade a strategy which incorporates their product (i.e. rates/FX to global macro) or where the fund only focuses on the product they trade.

    The shops that take traders on tend to be more risk management/trading heavy than the value funds.

    Ofc, it's not easy to branch into HFs but so long as you've got what it takes don't see why you can't.

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    Thanks to both of you! Very helpful
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    These days more and more hedge funds use algorithms so you should deffo not get your hopes up. I'd advise learning a programming language, going for a Maths/CS/Engineering degree, MSc, PhD and then applying for quant trader jobs if you still have a huge urge to do trading
 
 
 
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