How to get a hedge fund quant researcher job: 11 routes in

The market for graduate quants in finance is arguably hotter than it has ever been. For top hedge funds, the acceptance rate for graduate roles is often less than 1%, even for top applicants. And yet, funds are constantly hiring for graduate jobs: how do you get one?

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The answers may lie on a recent AMA from quant job forum QuantNet. A quant researcher involved in recruitment for a "tier-1 hedge fund" dispensed career advice to prospective quants, unveiling 11 potential ways to enter the industry. You'll likely need to try multiple methods at once, so find your favorites below:

1. Get a hedge fund quant job through an internship

The quant said that he had not completed any internships in finance but said that having one would have been "hugely beneficial." He said that having an internship is even more important now than when he first joined the industry, "considering how competitive the job market has become today." 

The quant said that, at undergraduate level, funds are looking for "outstanding skills in mental math and puzzle-solving" in their interns. You can check out a guide to quant interviews here that show you the hardest (and weirdest) questions that might pop up.

That being said, he said getting a quant internship "can be tough, mainly because what you've learned at school is limited." There are multiple things you can do to help secure one further down.

2. Get a hedge fund quant job after a PhD

The quant didn't have an internship in finance, but he did have a PhD. It can be a huge help, depending on what you study and where you apply.

For one, a PhD gives you more opportunity to find an internship, as well as access to internships exclusive to PhDs (which have a tendency to pay better). Doing a PhD will make you attractive to incumbent funds and investment banks but be warned: it might also be a turn-off for the younger electronic trading firms which prefer impressionable undergraduates.

Your PhD has to be something that will interest interviewers; the quant said one of his interviewers "complimented the topic choice" and asked in-depth questions. He admits there may be some survivor's bias to this route though, as he was "also rejected by multiple firms" who presumably didn't find his thesis as compelling. The quant said that successful PhDs have to be "passionate about real-world feedback, not just academic impact."

3. Get a hedge fund quant job after an MFE

Master's in financial engineering (MFE) programs and their adjacent alternatives are designed specifically to get you a job in quant finance. Naturally, then, they're a viable route into a hedge fund quant job, if you attend the right one. 

The quant said MFEs are common on the buy-side, and that the strongest MFE candidates "demonstrate persistence, intellectual curiosity, and strong problem-solving abilities." For employers, they come with the added bonus of not having to teach candidates the domain knowledge necessary to excel as a quant. PhDs have previously told us that they struggled to find a job in finance until after they acquired an MFE.

That being said, not all MFEs are equal. The two best options are Baruch College's MFE and Princeton's Master in Finance, but you can find a list of alternatives here.

4. Get a hedge fund quant job after a co-op

This route isn't technically mentioned by the quant as it's very niche, but can be a massive help in securing an internship. A select few schools run co-op programs, in which internships are mandatory as part of the course, which matches you with relevant employers based on your profile and preferences. 

For buy-side jobs, the only co-op worth knowing seems to be at the University of Waterloo in Canada, which has strong relationships with not just hedge funds, but algorithmic trading firms like Jane Street and Citadel Securities. It will also give you the opportunity to intern at big tech firms and fintechs, giving you more variety if your heart isn't set on a quant job yet.

5. Get a hedge fund quant job by attending a 'target' school

Where you're studying can matter just as much as where you're studying. While there's a growing notion that great talent can come from anywhere, it's a quiet truth that top talent primarily congregates at top schools.

The quant said that "[CV] screening is often fast and crude" when applying to hedge funds, so attending a school and program with a valuable "brand" will help at this stage. These schools also usually provide access to a more comprehensive alumni network or more established campus hiring pipelines.

6. Get a hedge fund quant job after a sell-side quant research job

The tried and tested method of going to the sell-side and awaiting a buy-side exit opportunity is as true for quants as it is for investment bankers. The quant said transitioning from the former to the latter "is definitely feasible and relatively common." Working for a bank before a hedge fund can "expose you to relevant skills" otherwise untouched in academia.

There are differences in mentality between banking quants and hedge fund quants, however. Both prioritize results, but hedge fund quants have "an entrepreneurial mindset" and a tendency to seek out and "maintain a competitive edge." When one bad strategy can be grounds for termination, that kind of mindset is somewhat compulsory.

7. Get a hedge fund quant job after a buy-side quant development job

If your background is that of a computer scientist rather than a mathematician, you'll find quant development jobs much easier to come by than quant research roles. Quant developers are unsung heroes compared to researchers, the Samwise to their Frodo, but you can leverage your development experience for a research role down the line if you prefer the spotlight.

The quant said that developers "can keep learning on the job and transition into quant research, trading, or even portfolio management." You can also stick around in quant development; senior developers make a less money than researchers on average but are generally more stable in their roles.

8. Get a hedge fund quant job after a quantitative risk job

There are more quant roles in finance than just research and development. Risk is another key area for quants to enter, which the quant said "seem[s] quite transferrable" to a quant research role. It doesn't have to be a hedge fund risk job either; the quant said "both sell-side quants and exchange quants" have crossed over to the buy-side via risk.

The poster child for this path is Giuseppe Paleologo, Balyasny's enigmatic head of quantitative research. He spent eight years in risk analytics at IBM before becoming a quant researcher at Citadel. He then transitioned back to risk for senior roles at Citadel, Hudson River Trading and Millennium before returning to quant research with Balyasny. Paleologo has said before that quant risk can be "extremely intellectually satisfying," and warned that quant research can burn you out by your early 30s if you're not careful.

Risk quants also have a bit of power over quant researchers. The team can influence how a hedge fund allocates resources, both for trading and for hiring. 

8. Get a hedge fund quant job by winning a trading competition

If you're dead set on a hedge fund quant job as a fresh graduate, you'll need some CV stuffers to give you an edge. The quant said that he would "highly recommend participating in a trading or data competition hosted by your target firms," and that a good rank will "impress your interviewers."

There are a lot of these competitions out there, but the quant noted that high performance in Prosperity, a relatively new competition ran by algorithmic trading firm IMC, is "quite impressive." Some, including Prosperity, have a direct hiring pipeline for high performing contestants. 

Funds like Citadel and Schonfeld also run multiple datathons across the year; winning these will be similarly impressive.

9. Get a hedge fund quant job by winning a Math Olympiad

You can also impress interviewers by winning competitions unrelated to finance. Olympiads are, by and large, the most widely respected competition by the industry. The quant said that firms are looking for "genius" level talent at undergraduate level, and Olympiad medalists are among the most common successful profiles.

Case-and-point, the most successful Olympiad contestant of all time: Zhuo Qun Song. He interned twice at Jane Street, then got a graduate quant research job at Citadel. The quant also said that competitions on data science platform Kaggle are also highly regarded. 

10. Get a hedge fund quant job by contributing to other data-based projects

The quant said that "projects tied to real data and measurable results tend to stand out." Points 8 and 9 are examples of this, but there are further opportunities to prove your worth. He highlights "open-source projects" as a possible alternative; hedge fund executives have also praised this route, but noted that it can be a "double-edged sword" as a GitHub repository full of subpar code might harm your chances.

If not open-source, the quant said, "independent signal research can also help." You could try to do so through a simulated environment such as WorldQuant's BRAIN platform. Or you could prove your appetite for risk by trading with your own money... feeling lucky?

11. Get a hedge fund quant job via referral

Quant finance is still finance, which means who you know is arguably more important than anything else. The quant said that, while mass-applying can "sometimes work," utilizing your connections "has a much higher chance to get interviews." This can be via careers fairs, networking events, alumni networks or social media. He advises that you "fully utilize your school's resources." Happy hunting.

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