Linear QR at JP Morgan

contradanza · March 17th, 2011, 6:06 pm

Hi. Has anybody worked for or heard about the linear quantitative research team in JP Morgan? They seem to be far from the typical quant work at investment banks and closer to hedge fund type of culture. How good are they compared to the other quant departments at JP and to rival top-tier banks (I am also interested whether other banks have such teams)?Any opinions highly appreciated.

frenchX · March 17th, 2011, 7:32 pm

I have met them in London,one my interviewers was from this group. It's more algorythmic trading and optimal portfolio allocation. It's not derivative related, it's more implementing automated trading strategies. The guy described the position as being very code type (they research more CS guys than math guys). that's the only return I can give you .

contradanza · March 18th, 2011, 5:04 pm

Thanks, FrenchX. I am trying to assess a potential offer from them versus the perspective to work on the derivatives pricing side (I am fortunate to have skills in both areas). Doing econometrics seems to be less of an interest for a mathematician, but the key argument they put forward is that they are "closer to the business", which is probably true. It is a very difficult choice. I am not a money-seeker, but I saw too many of my peers who got dissappointed by the pay in analytics and eventually went into trading.

ArthurDent · March 19th, 2011, 1:13 am

go to trading, you can go to research later if you don't like it. the other way around is difficult.

GaleMartin · March 20th, 2011, 4:47 pm

To the best of my knowledge, your understanding is right. They are "close to the business", and it's nothing like derivative pricing.

spv205 · March 20th, 2011, 6:31 pm

I think you should decide on the area you like. I suspect it will be relatively hard to switch from one to the other (algo trading vs derivatives). There is little crossover in experience/maths as far as i can see, so your experience in one area will count for little in the other.derivatives pricing can also be close to the business ( so called desk quants).I would say those derivatives quants that move into trading do it because they like trading and taking risks, using/understanding the models rather than implementing them.