Bluepoint daily market view – October 21, 2011
Want a big time hedge fund job? Here’s a shocker: a student enrolled in a joint MBA/JD program at Harvard, armed with an economics degree from MIT and work experience at McKinsey & Co., had trouble getting an interview to intern at a hedge fund. Surprised? You shouldn’t be. It’s actually slowly turning into the norm, said John Pierson, president and CEO of 10X Capital, a search firm specializing in hedge funds. Even with such an impressive candidate, gaining entry into the elitist and secretive hedge fund world would be a challenge, Pierson said. Especially so in the unnamed candidate’s case because the internship he coveted was one where he would essentially be working in the role of an analyst – taking positions on strategies and stocks and reporting to a portfolio manager. Such an internship at a hedge fund would in all likelihood lead to full-time employment, Pierson said.
We here at Blue Point Trading get a fair amount of contacts each week, with many a trader looking for the big trader job on wall street at a big wall street firm. Likewise we at Blue Point Trading would love to have a big fund of funds come to us to talk to us about giving a small portion of their funds for us to manage. First of all Blue Point Trading is not a big hedge fund, we are a start up, we are not even really set up to handle the regulatory commitment. The point is that we must grow. You can not expect to walk in and start at the top. You can see with this blog, that even people with the best credentials have a hard time. This is why we focus on recruiting start up traders to trade out our start up firm. We must understand our place in the market and be realistic on what we can achieve, us as a firm and you as a potential prop trader.
So yes I know you may believe you are a good trader and have some stats to prove it. This simply is not good enough for us and our investors – let alone a big wall street hedge fund. A new prop trader must be proven through a reasonably strict Trader Programme or your career as a prop trader will simply not happen. For us a trading firm, we must demonstrate our ability to recruit, train and bring to profitability a team of traders to sell Blue Point Trading capabilities to other larger firms. We both have got a lot of work to do.
Bluepoint daily market view – October 21, 2011,