Are Quants Really All That? Downsides?

[Jobo]

Hi everyone!
I’ve been hearing more and more about “quants” and how some of them make 250k-400k straight out of undergrad and how it’s so many people’s “dream job.” I’ve looked a bit at what a quant does and most of the time it’ll entail a ton of math, including stochastic calculus and Brownian motion. If I’m good at programming and good at math, then is this the career path I should be trying to go for? What are the downsides of being a quant? Why are quant guys the smartest people in Finance?

All I would like are some opinions (even if you've never been a quant) and experiences.

 

[Ahududu]

I have never heard of a someone being a quant straight out of college. It usually does require masters degree obtained related to statistics applied maths CS or Financial engineering

 

[ZFL]

Choose an industry that is booming in the place where you will be working, choose an area that interests you or choose to work on something that you're good at. That's what people say. I chose to work in quantitative finance because I found myself interested by the math and programming specifically in finance and there seemed to be a lot of opportunities in the city I live in. All in all, it is a viable choice.

 

[AppliedMath]

There's definitely a lot of hype. The hype is also coupled with elitism around post-grad training. The big number are for select few. Find the normal numbers. Also, define for yourself why you like math, what you like about it, and how you'd like to use it. Quant is amazing you want to be one. It sucks otherwise, especially since there are many adjacent careers to use the same/similar skills in.

 

[Jobo]

There's definitely a lot of hype. The hype is also coupled with elitism around post-grad training. The big number are for select few. Find the normal numbers. Also, define for yourself why you like math, what you like about it, and how you'd like to use it. Quant is amazing you want to be one. It sucks otherwise, especially since there are many adjacent careers to use the same/similar skills in.

I am a European student interested in becoming a quant researcher because I am a passionate of Math and Finance. The intellectual stimulation, the mathematical problems and working on projects attract me a lot.

I am very curious, analytical and I have good problem solving skills. I love to investigate Datas like a Detective to get the answer of the question.
In spite of having a heavy STEM background, I'm pretty decent with people and I'm a strong communicator. I want something intellectually rewarding and satisfying. I want to work with similarly smart and driven people. Hence, I really want to take on some type of leadership position later in my career. Do you have any insight into how that could work out? Basically, what’s the hierarchy like in the quant world? Considering that would you recommend me to pursue an quant researcher career? Or are there better options out there? What are the downsides of being a quant?

 

[tailrisk]

Do you have any insight into how that could work out?
Yes, you could end up replacing Jim Simons at RennTech or you could end up auditing risk models. Or somewhere in between. It's all on your own aptitude.

Basically, what’s the hierarchy like in the quant world?
Fairly flat, I'd say. Usually you have a head quant and a few folks reporting to him/her. Usually you don't see much of a hierarchy of 3 or 4 layers of management. So an MD Quant working with a second-year associate on some exotic option model at a sell-side firm is very normal.
On the Quant Trading side, its even flatter. You'd have small teams of quants working together usually and as long as you are belting out good signals, you are rewarded with good comp. Folks usually don't care about titles in these roles. You want % cut of what you generate.

It's hard to generalize all sell side and buy side roles across the board but I think most people would agree that it's a fairly flat structure with the good guys keeping afloat at a role for years and getting promoted every few years, and the lesser candidates jumping shops more regularly to find a better fit.

Considering that would you recommend me to pursue an quant researcher career?
Very strange question this. You want to pursue quant researcher career for your own sake, not on someone's recommendation. If you do indeed know enough Math and love the markets, sure..go for it. But don't do it so that you can "take on some type of leadership position later in my career". Don't want to generalize but the leaders in the quant team are usually folks with PHD who are highly specialized in their field because of their extensive research and not necessarily folks who wanted to lead a team of quants some day.

Ask yourself what you really want to do. Look through these forums for people sharing their experiences and get a sense of what makes sense to you. And if it excites you, move forward. When someone gets into Stanford to get a PHD in String Theory, they don't ask themselves, whats the downside of being a String theory scientist in 10 years from now, they do it because it excites them.

Or are there better options out there?
...

What are the downsides of being a quant?
Same as any wallstreet job...

1. When the economy aint too hot, you gonna get to spend a lot of time with the family
2. The hours aren't exactly a cakewalk either
3. You'll be surrounded by very high IQ folks who might not necessarily care about your feelings when they give you an honest opinion
4. Almost always the pressure to perform is going to be high