algorithmic trading - BB vs. HF? Help!

jalapringle · March 6th, 2006, 9:26 am

Hi all,I am in a quandary, with two offers from great firms. One would be an algorithmic trading position with a great BB firm, essentially doing optimized trade execution stuff, aka taking over what equity flow traders used to do. The other would be an algorithmic trading position with a hedge fund aka more stat arb stuff. I am coming out straight from school - what should i do?thanks.

DominicConnor · March 6th, 2006, 10:30 am

Hard to call.There is persistent long term value in having a grounding at a BB firm.However the work that HF sounds better, being more portable and more "quanty". Thing about optimisation is that your work is to continuously refine a few things. That means you become expert in a very narrow domain. This is great until that domain becomes mined out. You may end up with illiquid skills.How big is the HF ?From that little info I'd got for the HF, though only just.

farmer · March 6th, 2006, 11:20 am

I go with the BB. It sounds like a real business. This hedge fund, who knows what kind of dumb old idea they are trying to copy over there.

JohnJackson · March 6th, 2006, 5:29 pm

It really does depend.In my view they are two entirely different jobs and the considerations are pretty vast. Drop me a PM and I will give you more info.

hedgeQuant · March 6th, 2006, 10:30 pm

I would agree with DCFC. Another thing you have to consider is the future of the field itself. Right now execution is a well mined area with a lot of competition. I beleive the opportunities are likely to diminish. Without knowing about the working environment at the HF it is hard to give any concrete suggestions. However the training and exposure are likely to be broader and, as DCFC mentioned, more portable.- hedge Q.