Sorry, I know this is a real newbie question, but as a current PhD probability student with no financial experience whatsoever who wants to get into quant finance, I wonder if it is best to concentrate on obtaining a junior position in either a hedge fund or a bank. Is there a difference in profile or skillset between a stereotypical hedge fund quant and a bank quant?

Hi,Sort of asked this question in an earlier thread. Mainly because I had some feedback from an IB saying they were not looking for people from hedge funds (ie myself). Which I thought was totally meaningless to me! Just wanted to know what others thought the diffence was.I had worked in an IB for 6 years and a hedge fund for three now. I would say certainly start with a big bank. The exposure would be better all round. (They would move you around departments). This sounds a good thing seen as you are new and maybe a bit unsure as to what you really want to do. You might find something you like that you never thought about. Use the big bank as a training ground. learn all your skills there. There are other benefits of course. On the downside there are a lot of politics - steer clear if you are not good at that stuff though. Going to a hedge fund is something that comes or doesnt. If you feel you are good enough to manage risk carefully and with good returns and you have something exceptional talent, then the rewards are higher than an IB. Some people stay in IB for years and do well. Really depends on your chose path,Hope this is some help.

Custard, have you observed much difference in the corporate culture / quality of life between h funds and i banks?

Happy wearing my own clothes rather than a suit! Seriously though it just depends on where you go. I was brought up on a main course of Europeans and for dessert I am much happier with Americans. It depends on what you, yourself fit into. Work out what your real values are before you jump. Employment basically depends on on three things.1. Can he (she) do the job?2. Will he do the job?3. Will he fit into the culture?all just as important.

Know someone who moved from an IB to HF, more on the trading side than Quant. However he says it is the best thing he'd ever done, better money, hours, general environment etc. Granted it is a big, well est. HF.

'big investment banks aren't going to go bust, hedge funds might wipe out'and'it's a lot easier to go ib-> hf than hf ->ib' (why?)are two quotes from a hedge fund manager who interviewed meat a big bank they have a lot of roles and if you don't fit the first one you're in quite right, they can always shuffle you about a bit, whereas at a hf there's less time or room for people to develop.that said, at a decent hf the learning curve should be steeper and rewards are probably better, and there's the buy-side vs sell-side question as well

'it's a lot easier to go ib-> hf than hf ->ib' Generally that is the rule. Depends on the HF, large & established vs. small & relatively young firm.Also depends if, whilst at that HF, you screwed the IB. ; )

bit of a sweeping statement about big banks. Tell anyone who worked for Barings that. Also some former bank workers in Argentina and Japan! Enron, Parmalat huge institutions that no one thought would go under either.Takeover risk is something else to think about. Banks are looking to continue cut costs. Hedge funds are looking to grow organically more often than not.

yes and of course even the banks that have not gone bust have axed lots of people over the last few yearsi should add that one of the guy's collegues said that spending the day spotting which market makers have misquoted was much better than being the mm who only gets the trade the 1 time in 20 he misquotes.

sounds a good place to miss

Tripitaka, I feel that making markets upon request and getting agressed on your own misquotes is not allways fun, especially having a whole bunch of greedy, maybe informed, jackals against you; but extracting value from the market requires a lot of talent.Sorry tronc, this does not really answer young question.

not to mention market making over the past three years would have cost you a fortune!