Feb

26

What do hedge funds look for in a proprietary trader?

Independent, entrepreneurial team-players. Aggressiveness, with the ability to integrate information quickly. Essentially, the ability to make quick decisions on incomplete information.

The longer the track-record the better. Consistent profitability with low volatility of profits, where "low" will depend on the fund. Some will look askance at "too low" volatility, figuring there isn't enough risk, or that you're afraid to put it on. Be able to explain the scalability of your trading, and how you can increase or decrease volatility, i.e., risk. Maybe you had to play it safe because of margin constraints, broker constraints, etc. They'll want to know how quickly and how much you can scale up whatever it is you want to do.

As to education, the traditional degrees, Finance, MBA, etc., are easier only because you don't have to explain yourself. People know what you know. An ex-scientist or ex-engineer will constantly be asked why he switched careers and the applicability of his background to trading. A different degree helps you stand out, but it also moves you from being a safe, and easily defensible choice, to a risk.

Your cover letters should be short and to the point. No one is going to sit and read a long essay from someone he's never met. Generally, funds are looking for junior people from groups they know at banks they know.

Everyone is hiring, to a certain extent. They may not be publicizing it. Almost any fund will listen to someone they find intriguing. There are recruiters all over the place, playing up their hot contacts and jobs.


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