Trading in a Hedge Fund

Sep 17, 2007

A bit of advice, if you don't mind :)

I am working in a top tier investment bank in technology. I have gained a strong interest in the business, having gained the IMC qualification in the UK.

This week, I have been offered a position as an execution trader in a small hedge fund.
The question I have is, in terms of moving into the business side (trading in this case) of investment banking, is this a good direction? Is it a good foot in the door, or merely a dead end?

I'd really appreciate any insights/advice on this.

(BTW, I have First Class academic background, so that's not a problem going forward... if that means anything).

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Jack o'Clubs

Well-known member
Sep 7, 2005
For what it's worth...

Without a professional trading background you're going to find it difficult to get a step on the ladder better than this. I'd take it if trading is the direction you want to go. What's the worst case scenario? You end up back in banking tech - you guys are always in demand and the money's good. Before you resign though, you might want to have a word with the head of trading and/or your boss where you are and say - look I'm a good guy, want to trade, have an opportunity to trade with one of our clients, is there anything you can do to give me an opportunity to trade here? Again, worst case scenario they say no, best case scenario you start your trading career at a big bank, which is a few steps higher than a small hedgie.

I had a friend who was in equity research a few years back who went in to resign to go to another firm (same job) and when the senior management said is there anything we can do to keep you, he said 'yeah, I've always wanted to do prop trading'. So they gave him a shot at it rather than lose him. Don't ask, don't get!
Likes: Directional
May 27, 2004
All good advice from the above poster , I would like to add the following as well.

In a small place you get to see all facets of the business going through the motions,not just your own little world.

This sometimes can add great weight to your CV in the "oh yes I have experience of that" department later on down the line.

I would almost certainly take the position you have been offered, but its worth putting in a word in your place of employment at the you pointed out earlier,nothing to lose.

Good Luck


A Dashing Blade

Well-known member
Jul 9, 2004
downside risk is negligable given you can always move back to IT having gained serious front office exposure.

It's a no-brainer imo