QuantFeed: Q1: Quarterly Review

Welcome to the first edition of our quarterly review, and thank you to all who have subscribed thus far. In this edition, our focus is to provide insights into current trends in hiring activity, spotlight notable products and strategies, and offer recruitment tips derived from observations made during the first quarter of 2024.

General Hiring Activity

The year commenced with vigor, witnessing numerous people moves and the inauguration of new office spaces as companies persist in their pursuit of gaining a competitive edge within their respective markets.

We anticipate this heightened activity to persist, particularly as prominent prop and hedge fund entities continue to diversify. Whether it's historically discretionary-focused funds venturing into quant/systematic approaches or traditional HFT firms expanding into mid-frequency trading strategies, the landscape remains dynamic.

As remarked in our previous article (https://www.dhirubhai.net/pulse/quantfeed-navigating-market-landscape-2024-ryan-pelham-yau6e/?trackingId=DdoTBDk6SCqjMEIvVIpQzA%3D%3D), firms remain focused and disciplined in the market, exercising high selectivity in their hiring decisions.

However, amid this activity, some firms that exhibited aggressive hiring practices over the past 6-18 months have, as widely reported, initiated cutbacks before the close of the quarter. This trend appears consistently across the hedge fund and prop sectors historically, with further reductions anticipated as certain strategies encounter challenges in capital allocation, resource management, and overall performance.

Products and Strategies

As seasoned headhunters, we pride ourselves on offering a comprehensive and well-informed perspective on the products and strategies that key firms are strategically pursuing. Here are some noteworthy observations:

• Index rebalancing is experiencing a resurgence, with many firms seeking to invest in this strategy following a tumultuous period between 2020 and 2022.
• Equities Stat-Arb remains a focal point, attracting attention from established hedge fund entities and traditional HFT firms keen on talent acquisition in this domain.
• HFT players continue to diversify, placing emphasis on developing mid-frequency trading strategies, supported by robust technology and infrastructure (and more flexibility around setup and percentage payouts).
• Mid-frequency intraday equity strategies and event-driven approaches are experiencing high demand across the spectrum.
• Firms are intensifying efforts to strengthen their execution platforms as they bolster their investment professionals' headcount.
• A polite nod to crypto as they experience a resurgence with many firms better positioned to strategically invest following valuable lessons learned.

Furthermore, alongside products and strategies, we have noted a specific demand for experienced traders and quantitative researchers. This trend emerges as the hiring season for senior PMs subsides, and these professionals assume positions after fulfilling non-compete obligations.

Recruitment Analysis

In our interactions with candidates, inquiries regarding the timing of interview processes have been prevalent.

We've observed a shift towards extended interview processes becoming the new norm, encompassing both the number of interviews conducted and the duration between application and offer acceptance. While several factors contribute to this trend, most are beyond the candidate's control.

Nevertheless, candidates do have power over their choice of roles and representation. It is vital to select recruiters who uphold high standards and possess a deep understanding of the industry landscape.

We previously outlined (https://www.dhirubhai.net/pulse/quantfeed-navigating-market-landscape-2024-ryan-pelham-yau6e/?trackingId=DdoTBDk6SCqjMEIvVIpQzA%3D%3D) the minimum information candidates should expect from recruiters and reiterate the importance of this criterion.

In an environment where firms exhibit heightened selectivity in recruitment, aligning with experienced recruiters with established client relationships is paramount. Such partnerships facilitate streamlined interview processes and effective management of multiple offers.

Thank you for your continued support, and we look forward to providing further insights in our next edition.

Live Roles:

Risk Manager - Fixed Income - London

Senior Quantitative Researcher - Options - New York and Chicago

US Head of Risk - Prop-Trading Firm - Chicago

Quantitative Researcher - Index Rebalance - North America or Europe

Quantitative Researcher - FICC - Geneva or London

Quantitative Researcher - Equity Stat-Arb - New York and London

Quantitative Researcher - Stat-Arb (Machine Learning) - North America, London, or Dubai

Quantitative Researcher - Equities Execution - North America or Europe

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