JPMorgan on the skills most likely to get you into a hedge fund


If you’re wondering how to hone your skills for maximum employability on the buy side at this point in the cycle, two trading veterans from JPMorgan can give you the steer you are looking for.

Joanna Martin, Head of Global Liquidity Solutions and Co-Director of Execution Services for EMEA, and Sarah Heffron, Co-Director of Global Electronic Client Solutions and Equity Trading Programs, surveyed their buying clients. The hottest skills are always data science, or “quantitative data scientists” to be precise.

Quantitative scientists are a special breed. The term is used to refer to coders who trade or vice versa – apparently clients “can’t afford to have someone sitting there looking at data”. Machine learning also remains a hot topic; These days, JPM tends to run machine learning models alongside their traditionally “calibrated” model in order to better understand the occasions when the two models say different things.

But while “we get more and more automated every year,” Martin and Heffron said that doesn’t necessarily mean robots are taking over. All algorithms need a “100% supervising” human being because “things change, and you may inadvertently import something in the middle that may sidetrack you”. In other words, AI is just another participant in the endless group chat that is the modern trading floor.

And at JPMorgan, it seems people will be back on the floor. Everyone on the team is ready to come home, either from home school fatigue or (in the case of younger employees) to getting personal space from their roommates, Martin and Heffron said.

When they return, however, things will be different. In London, there have been moves to Paris and local hires, so the new office environment cannot be the same as the old one. Over time, the JPM team expects everything to be determined by decisions made by exchanges regarding the location of their data centers – because electronic execution is a game of microseconds, the Commercial center of gravity will always be determined by the infrastructure and connectivity that determine competitive advantage.

They also said that “the close as a liquidity event is much bigger now,” meaning up to 20% of daily stock market volume spends in the last five minutes of trading. Any minor technology failure or operational difficulty at this time can have a disproportionate effect and investors are increasingly afraid of them. No wonder JPM traders want to be in the same room as each other.

Elsewhere, commercial and commercial bankers are often extremely suspicious of internal relocation offers. While anyone who wants to reach the highest ranks will often need a wealth of experience, bankers know that the security lies in having a personal franchise, and a personal franchise depends on sticking with clients who know you. Taking the step “in management” is a leap into the unknown, a decision to commit to a single employer and a career risk that many people regret taking every year.

Of course, like Parshu shah Might be thinking, there are worse things that can happen than leaving all of your best customers behind. Sometimes they follow you. As a salesperson at Credit Suisse’s swap office, he was partly responsible for establishing and maintaining the bank’s relationship with Archegos Capital. After being promoted to the head of services ‘main risk, Archegos’ exposure and the resulting losses mean he was forced to leave.

The losses at CS have been the occasion for quite a bit of commentary on the dividing line between revenue generators and risk managers, not all of which are necessarily relevant. Trying to make money and trying not to lose money are complementary activities, and there can be a surprising degree of variability between the banks on which the teams report to the trading manager and the managing manager. risks. The important thing is not to maintain a rigid divide between Church and State, it is for everyone maintain an objective view and an appropriate risk tolerance. Mr. Shah’s misfortune is ironic, not outrageous.

Elsewhere …

A score against the course of the game; Deborah Stine, Senior Director at Element Capital, lost a sex discrimination case in arbitration and had to pay approximately $ 128,000 in legal fees. (Bloomberg)

JPMorgan already has hired 90 bankers and he wants to hire another 100 to relieve burnout. (Financial news)

The New York Stock Exchange would like to allow TV cameras to return to its floor for marketing reasons, but with few traders seeming interested in returning so soon, they fear the sight of new issuers will be ringing a bell with enthusiasm. Silent reception in a cavernously empty room may seem odd rather than exciting. (Fox Company)

Although Andrea Orcel is now at Unicredit, the Spanish government is still on the populist track when it comes to criticizing the pay of senior bankers (Bloomberg)

“Started and adapted” is just a figure of speech, Lex (FT)

A London Divorce Court judge said “every unhappy family is unhappy in its own way” knowing he was unlikely to see another case in which the son of an oligarch claimed to have lost $ 50 million in day trading rather than hiding it in his father’s name to avoid paying his mother for it.

There is the drift of style and then there is that… Two Sigma has launched a real estate fund. Tom Hill, the head of private markets there, explains that it’s just a matter of “taking data, modeling it and predicting what’s going to happen in the next hour, next day, or next week. … Three, four, five years ”. The team so far has a data scientist and five real estate agents, including Rich Gomel, formerly of WeWork. (Business intern)

photo by Matt Artz at Unsplash

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