/sci/ - Science & Math » Thread #10879904

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Do buy-side quants use a lot of stochastic calculus, functional analysis?

Anonymous Sun 11 Aug 14:09:37 2019 No.10879904 View Reply Original Report

Quoted By: >>10879933 >>10879950

Rather, what sort of math gets used at investment banks that don't get used in hedge funds?

Anonymous

Anonymous Sun 11 Aug 2019 14:28:01 No.10879933 Report

Quoted By: >>10879965 >>10879974 >>10879978

>>10879904
Investment banks don't really use any math, and hedge funds don't necessarily use any math either.

Anonymous

Anonymous Sun 11 Aug 2019 14:36:42 No.10879950 Report

Quoted By:

>>10879904

I don't know if they use functional analysis

But time series analysis, SDE, SPDE, Stochastic calculus, optimization, multivariate statistics, and other areas can all be used

Anonymous

Anonymous Sun 11 Aug 2019 14:44:15 No.10879965 Report

Quoted By: >>10880341

>>10879933
Investment bankers such as the product groups ECM, DCM, M&A or the industry groups wont use much math but there are other areas of an investment bank tho use math.
Some groups within an investment bank such as the strats group or financial modeling group and other groups at goldman sachs will use a lot of math They hire many quant phd's

Anonymous

Anonymous Sun 11 Aug 2019 14:47:03 No.10879974 Report

Quoted By: >>10879984

>>10879933
Two sigma, Ren tech, jane street, Citadel, D.E Shaw and many other hedge funs are all quant or mostly hedge funds they hire quant phd's

Anonymous

Anonymous Sun 11 Aug 2019 14:48:06 No.10879978 Report

Quoted By: >>10879984

>>10879933
Idk how you came up with this false information

Anonymous

Anonymous Sun 11 Aug 2019 14:50:46 No.10879984 Report

Quoted By:

>>10879974
>>10879978
Those are all specifically quant hedge funds. And even then you should know the math they use is not particularly sophisticated. Certainly not functional analysis. It's more about knowing probability, statistics and programming but it's not like you need to know measure theory.

Anonymous

Anonymous Sun 11 Aug 2019 18:19:00 No.10880341 Report

Quoted By: >>10880351

>>10879965
yeah but those dont pay as much as hedge

Anonymous

Anonymous Sun 11 Aug 2019 18:23:57 No.10880351 Report

Quoted By: >>10880356

>>10880341
Nothing pays as much as hedge. Also nothing sucks your soul as much as hedge.

t. Goy that worked at a hedge fun for a year, became insane, and now is a reformed good goy working at a bank

If you know how to trade, trade for yourself. Honest advice tbqh.

Anonymous

Anonymous Sun 11 Aug 2019 18:27:47 No.10880356 Report

Quoted By: >>10880369

>>10880351
what was your job? Also what was your degree?

I was looking to try and get a hedge fund job but this makes me want to reconsider

Anonymous

Anonymous Sun 11 Aug 2019 18:31:19 No.10880369 Report

Quoted By: >>10880667

>>10880356
>what was your job?
Quant.

>Also what was your degree?
Pure math.

>I was looking to try and get a hedge fund job
If you are the particular kind of person that can do it go for it. When I was there, I noticed there were very particular people there. People who could take bad news and not even flinch, people who could lose tons of money and not even feel it. Meanwhile, even though I did overall well (one of my accounts even doubled in value), every time something bad happened I would really feel the hit and it would deteriorate my state of mind. I quit literally because I broke. I was not the kind of person to be in that environment. But if you are detached/psychopath maybe it is for you.

Anonymous

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Anonymous Sun 11 Aug 2019 18:42:33 No.10880386 Report

Quoted By:

>be PhD working on funky field
>after uni go to risk management job at bank and extend and maintain Visiual Basic forecasting simulators
I shiggydiggi

For practical purposes, stochastic integration theory was exhausted 10 years after it arrived. The pure math - unless you want to find semi-classical limits of some quantum field theory - is just trying to find the right spaces that the fragile object it's made from can inhabit.

Anonymous

Anonymous Sun 11 Aug 2019 20:31:32 No.10880667 Report

Quoted By: >>10880680

>>10880369
very interesting anon thank you.

I always thought it was the traders that managed accounts, while quants did modeling and risk management? But it seems like you were handling an account as a quant

Anonymous

Anonymous Sun 11 Aug 2019 20:37:12 No.10880678 Report

Quoted By:

Lots of different strategies for time series forecasting. ARIMA and stuff.

Anonymous

Anonymous Sun 11 Aug 2019 20:37:34 No.10880680 Report

Quoted By:

>>10880667
Hedge funds tend to be smaller operations, most don't have more than 12 employees, and really most people have to do whatever is needed to be done. But even bigger funds like Jane Street with 900 employees say in their job descriptions that they'll need you to do anything and everything. Because really that's the name of the game, you are making money. If something needs to be done, you have to do it.

> But it seems like you were handling an account as a quant

If I had a system, funds would be allocated to it and it would be my account.

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