Dealing role at Hedge Fund

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Dante26

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Hi guys,

I have an interview coming up for a dealing role at a Hedge Fund. The hedge fund uses relative value trading strategies and some directional trading in futures.

From my understanding this is essentially arbitrage using established software programs and my job would be to execute trades that a computer tells me to do, then make sure the trades settle properly.

To me that sounds quite dull and I dont know whether I could learn much to progress my career with. Any advice on whether it is a good opportunity or what they are exactly looking for?

Thanks,
D
 
Dante26 said:
Also would it get me type-cast as an execution trader?
Click to expand...

May well be a monkey see monkey do type job...however...you will have no influence whatsoever if on the outside of an operation...far better to get inside and perhaps make some useful contacts. Depends what other choices you have in the jobs market.
 
Whether this 'progresses' your career rather depends on where you're sitting right now surely. Which is where?

I take it you're not heading up prop at goldies? So what are you looking for ideally?
 
Thanks for your replies guys.

Let me put this another way, I want to be a ultimately be a portfolio manager and I have CFA L1 results coming out next week. Is this job a good step for me?
 
Not working.

But Im impatient. I dont want to get tied into a dead-end job for 12 months and possibly pigeon-holed, whereby if I waited 3 months I'd get a job as a research analyst at Templeton.
 
That's a weired advert. Essentially they are going to hire you as a paper filler for a year whilst they develop some software to replace you :rolleyes: At least they're being honest I guess.

Dante, I'm guessing you have limited or no work experience so you haven't really got anything to lose but to anyone who maybe looking to leave a bank/asset manager and get into the hedge fund world, this could actually be a bit of a CV killer if they don't keep you on. Nothing like a short period of employment on a CV to raise eyebrows and questions.

Also, Harmonic have underperofrmed a bit over the last few years. If you work for a hedge fund you have to consider how likely they are to survive and if it does go under how will that reflect on you?
 
In this market the stigma of short periods of employment isn't so great imho. Not ideal, but there's lots of stuff right now that isn't ideal. Plus any job opportunity should be taken in context of what the alternative is. So I am guessing that for the OP it's a bit of a no-brainer.

But to be honest frankly I wonder about the attitude of someone who is out of work, looking to work in one of the world's most competitive industries, during probably the worst period to get hired as a relative or absolute novice in most peoples' living memory and is already worried about whether or not the experience they gain is going to box them in IF they get the job.

I think you need to sit down and have a little chat with yourself.
 
Thanks Pualo and Gamma. Appreaciate the advice.

I do have some banking experience but its in the middle office. I do understand what your saying Gamma, you give good advice on here but the markets will change at some point. & why move into something that ultimately isnt going to get me far? I'd rather spend the next 3 months reading and researching and making myself more employable to perhaps a lower ranking role but which could ultimately lead to more learning and responsibility.

I dont think the issue of just working for a year in a particular position then moving on is too much of a problem in this current market, but it may only lead to dealing/execution roles in the future and make it doubly hard to move into research/fund management and lead to only similar roles offered, that is what concerns me. I might aswell be in operations, there would be more of a career there.

Any thoughts?
 
lol... ive arranged interview time. I'll listen to what the job entails, then i'll probably be back here for more advice..!
 
I very much doubt my advice will change. For a start I have done assorted things in my time, INCLUDING senior execution trader for a very large fund. Believe me, it wasn't a mugs job at times.

And you should also bear in mind that not all execution jobs are the same. I seriously doubt that a stint as an execution trader at an (allegedly) relatively sophisticated hedge fund would be anything but positive for your career options. ESPECIALLY compared to sitting on your @rse waiting to be adored.

So I think you know where I stand on this.

Good luck. Choose well (if you get the choice - remember they get to choose first in this case).....

GJ
 
Thanks Gamma. Im not saying execution traders are mugs. I know they have to look to execute large blocks of complex trades often without being noticed in the market or affecting the price, and judge price trends and manage broker relationships to get the best prices, all this under significant pressure.

But I dont get the feeling this job involves that. Like Pualo thinks I believe this job seems like they want someone til they can computerise the job. I'd also be a junior dealer to someone else for 12 months until I get the boot, making sure their trades settle ok, its hardly inspiring, and obviously I'd rather be in a job where I personally take a view on the markets. Anyway I'll get more details.

I do appreciate your thoughts though. There are lots of guys on here who've "made it", but not many offer free and useful advice to others who are trying to.
 
I went and looked at the job ad on EfC and I genuinely think it's got some merit with repsect to your intended path. Both on a relative basis compared to, errr, nothing (which is what you have right now), and even on an absolute basis. Bear in mind that 'market facing' jobs for people at your level are like hens teeth right now. So not only would I, if I were in your position, keep a VERY open mind about it, I would actually go after it like my life depended on it. At the end of the day if you get offered the job you don't have to take it, but if you kinda slouch in there and wait for them to start polishing your shoes then you'll get nothing.

And a job can be what you make it you know. If they're saying it's a fixed term thing then ask what happens if you come to the end of it and are doing really well. Doesn't hurt to say that you're basically looking for an alpha generating role, but that the job they're offering would be a great insight into the market and that you want to be in a role that has a component of market interaction in it. At the end of the day, if they're saying it's not permament, it's not a crime for you to have a plan at the end of it. I think impress first of all them and then, if you're further along the road, you are in a good position to have an open dialogue with them.

If someone is able to have a mature, honest conversation with me when I'm in their position I think that's a much more marketable person than the one who strides in like they're doing a Kevin and Perry impression (i.e. generic sulky teenager). Which, although that probably isn't you, is kinda how your earlier posts came across, and is therefore at risk of being how your first impression goes at interview. In which case whether you want the job or not is gonna be totally moot. Believe me there's a ton of people out there who would love that job.

My $0.02. Lecture over, I promise.

GJ
 
That is so not fair, I was going to ask to be a partner or nothing!

Will talk with them tomo and see what job entails and report back.

thanks,
D
 
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