The $140k side hustle that helps get a hedge fund job
There are many ways to impress quant hedge funds. They include maths Olympiads, working on open-source software, and trading competitions. One of the most notable competitions, run by Millennium spinoff WorldQuant, can do more for you than stuff your CV.
Click here to follow our new WhatsApp channel, and get instant news updates straight to your phone 📱.
WorldQuant has just announced its fifth annual International Quant Championship (IQC), a three-stage team-based competition with a prize pool of $100k. The first stage takes place between now and May, with top scoring teams being invited to a final in Singapore. Teams must be made up of students from the same university and are tasked with generating 'alpha' (mathematical signals predicting the price movements of financial instruments) via the hedge fund's market simulation platform, BRAIN.
Participating students with interesting trading strategies are offered a job as a BRAIN consultant. WorldQuant has over 5,000 of these 'consultant' quants. They work independently and test strategies on the BRAIN platform. They are also paid. WorldQuant doesn't disclose precisely how compensation works for BRAIN. Nor does it provide any indications how much people earn, but it can be a lot.
One consultant, speaking on Reddit, said you can earn up to $120 on a daily basis, while quarterly performance bonuses can be worth up to $25k. This would make maximum earning potential as a BRAIN consultant ~$144k.
Of course, not everyone is making that kind of money. One consultant writing on Reddit made only $100 in four month. Another made $2.5k in two months. Pay varies massively from consultant to consultant. It's based not only on the signals they generate, but the amounts of time on the platform. There are also thought to be quarterly performance bonuses for top consultants.
It's not only about the money, however. One Singapore-based consultant, speaking anonymously, told us BRAIN "is more of a side hustle," and that the real benefit is that it "has opened the door to many networking opportunities thus far."
Top tier BRAIN consultants also have the opportunity to join WorldQuant full-time, but that doesn't happen much. Over 60 consultants have achieved full-time roles at the fund, but it's not clear how many of those were students or participants in an IQC.
There are alternatives. Other quant trading firms also run competitions, including Qube Research, Point72 and Citadel. IMC's trading competition, Prosperity 3, opened this month. It has a smaller prize pool than the IQC ($50k), but top candidates are put in contact with recruiters and winners frequently obtain internships at firms like Jane Street.
WorldQuant declined an opportunity to comment.
Have a confidential story, tip, or comment you’d like to share? Contact: Telegram: @AlexMcMurray, WhatsApp: (+1 269 237 3950). Click here to fill in our anonymous form, or email editortips@efinancialcareers.com.
Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)
