PhD Physics Student Seeking Quant Advice

[shoehorn]

For Ph.D. level jobs sending your resume to HR is indeed totally and completely useless.

There is, however, at least one important caveat to this. An increasingly large number of funds are focusing solely on algo/high-freq trading. If you have a PhD in physics - which is great, although not hugely uncommon these days - and if you have solid programming experience in Matlab/C++ - which is less common - and if you understand and can apply machine learning techniques to problems in finance - which is a rare skill for a physics PhD to have - you'll have very little difficulty in getting interviews by directly submitting your resume to this type of fund.

In fact, I'd be interested in talking to anyone who ticks all of these boxes, especially if they're in possession of a newly minted PhD.

 

[gdwebb85]

I have ~1-1.5 years left to finish my physics PhD. When should I start sending out resumes? Also, where does one go to find open positions?

 

[twofish-quant]

I have ~1-1.5 years left to finish my physics PhD. When should I start sending out resumes? Also, where does one go to find open positions?

Start with the www.phds.org, www.efinancialcareers.com, www.wilmott.com, www.dice.com. One way of narrowing things down is to look for jobs in NYC. Also try to get in touch with alumni.

I'd start e-mailing them out now. I think I ended up sending a 100 or so resumes on my last job search. What you are looking for right now are people that are willing to call you back, and if you have a list of a dozen people that are willing to talk to you, that's a good start when you end up with your degree. Also, it gives you a year to tweak your resume.

 

[twofish-quant]

which is a rare skill for a physics PhD to have - you'll have very little difficulty in getting interviews by directly submitting your resume to this type of fund.

Yup. But then you end up in the Kafka world in which it's not clear where to set your resume. Algo hedge funds are notorious for their secrecy which means that they will hide where to set your resume to, and in a lot of situations they will try to hide their existence (i.e. they won't even have a web site).

One funny (in a dark humor sort of way) is that financial companies are often closed-lipped for legal reasons. Making an unauthorized public offerring can get you in serious trouble, and so if you publicly post that you need people to work on trading Elbonian yak options, you may get a nasty call from the SEC asking why you are publicizing the fact that you are trading yak options.

Despite what you see in the movies, people in finance live in total fear of the regulators, and getting a polite call from the SEC is something that people would rather not deal with.

In fact, I'd be interested in talking to anyone who ticks all of these boxes, especially if they're in possession of a newly minted PhD.

Something that physics Ph.D.'s should do is to talk to anyone that even hints that they can use their resume.

 

[xepma]

I found this guide extremely useful (even though I haven't planned on switching):

http://www.markjoshi.com/downloads/advice.pdf

 

[ann3]

First let me say thank so much for this discussion. I read the whole thread and most of my questions were answered. I have some new ones though:

1. I will graduate next year with a PhD in Quantum Chemistry and MS in ECE. I know my way around numerical methods, simulations, etc. My C++ is rudimentary at best but I've done some insane things in FORTRAN (may have been "saner" if I used C... but legacy code... you know how it is). I am wondering if QC will be off-putting or unfamiliar in the quant circles? It's really basically a physics degree given by the chem dept - we do quantum theory, electronic structure, non-linear eq solvers, application is to physical chemistry and spectroscopy though. We even "live" in the physics building (instead of chem). What is the best way to explain this to the prospective employers?

2. I have a real hard time deciding what to do post graduation. My defense is rapidly approaching and so is the state of panic about the future. Having a repetitive or a boring job terrifies me more than anything. What kind of quant position type reward research-oriented people the most? Will I be given time to try out new things? even if some of these result in dead ends?

3. Not really a question but a reason. I'm a NYC native and having lived in all corners of US (HI including), I'd like to return to my favorite city - this is what gave me an idea to explore finance as a career. I considered it once as an option at CMU, I was there around the time when that major was coming together, but ultimately chose to stick with the College of Science. I like doing numerical models - so I assume I will like doing whatever quants do. And NY is a big + for me - all family and friends still there.

Finally, not to be too forward, but I visit NY every summer so if one of you guys (or gals) would let me buy them a cup of coffee and talk to me about their job/life/any interesting (non-secret) problems they've worked on, I would be infinitely grateful.

you can email me at melnichu at qtp ufl edu

Thanks!

 

[Robert1986]

I am beginning grad school for math in the fall. Finance has always interested me (I began college life as an econ/finance major until I took calc and liked it too much) and I am considering the possibility of perhaps getting into this field after I graduate. Now, I know lots of physics Ph.D.s go into quant stuff, but are there also math guys? And would I have a good chance of getting such a position? If this is something that I am planning to do, what kinds of classes should I take? Of course, the first year is going to be the basic foundation stuff, but I'll have to actually start choosing classes the second year.

 

[twofish-quant]

1. I will graduate next year with a PhD in Quantum Chemistry and MS in ECE. I know my way around numerical methods, simulations, etc. My C++ is rudimentary at best but I've done some insane things in FORTRAN (may have been "saner" if I used C... but legacy code... you know how it is). I am wondering if QC will be off-putting or unfamiliar in the quant circles?

People will care about your math and computer skills. What particular type of Ph.D. you get is less important, although there is a bias toward computational and applied physics and math.

What is the best way to explain this to the prospective employers?

Most of the managers in quant circles are technical people, so you'd explain it the same way you would to another physics Ph.D. In order to get to the managers, you have to get through the gatekeepers, and the trick there is to put some keywords so that they match your resume with what they've been told to look for.

My defense is rapidly approaching and so is the state of panic about the future. Having a repetitive or a boring job terrifies me more than anything.

I've never been bored. I've been frustrated, angry, terrified, ecstatic, exhausted. Everything but bored. Boredom is not a problem. The problem is when things are exciting in the wrong ways.

What kind of quant position type reward research-oriented people the most? Will I be given time to try out new things? even if some of these result in dead ends?

This is more a function of the people that you work with.

I'm a NYC native and having lived in all corners of US (HI including), I'd like to return to my favorite city - this is what gave me an idea to explore finance as a career.

That's very good. The issue here is that practically all finance jobs for physics Ph.D.'s in the United States are in the NYC-area. This is a big problem if you don't want to move to NYC. NYC has a lot of good things. However, you probably know already that you'll be paying a 45+% marginal tax rate.

 

[BrunoIdeas]

Hi, we've been talking of salaries as 90k , 135k, etc. But is that NET salary or does one have to subtract taxes, etc. ? In such case, how much does one have to subtract? About what percentage?

Thanks everyone.

 

[Locrian]

People typically discuss salary on a pre-tax basis. For 6 figure incomes, you can typically expect to lose 30%-50% of your income to taxes. However, that will depend heavily on several factors, the most important being whether you're married and what their income is, if any.

 

[AccAcc]

I'm hoping to make the transition when I graduate in five months, and I hope to live in the Chicago area. Is there hope to make that work without having a direct connection at a local finance company? I'm trying to get in touch with headhunters now, but it seems ambiguous whether or not they are interested in people that are new to the field. I'm progressing with the all of the "required" and recommended readings for making the transition, but the general stories that I hear make it seem like you won't get a job unless you have a direct connection to somebody that is in the industry.

 

[Locrian]

You should try to use the next 5 months to make those connections. I don't think they're strictly required, but some contacts in the industry can only help you.

 

[AccAcc]

You should try to use the next 5 months to make those connections. I don't think they're strictly required, but some contacts in the industry can only help you.

Do you think it is worth it to ever apply directly to a firm without connections, or should I spend my time only going through connections or headhunters? Do they hire this "early" relative to when I can start? Mark Joshi's book suggests otherwise, but I'm facing a bit of a timeline mismatch; I have a good connection to a well-paying postdoc job that interviews more than the two-months in advance that Joshi says firms hire within.

There's also exact uncertainty about when I will graduate. If I don't hit early December, then campus is closed for a month, essentially, and I'm stuck in the Spring semester with questionable funding and an advisor that has a hard time saying when is enough to submit a paper.

The entire logistics of getting a non-postdoc job right at graduation are a mess, and something I never see people discuss good answers to. Most end up postdocs for a few months or a year, or have a temp teaching job, or have financial support for a loved one to smooth over a month or three.

 

[Locrian]

Do you think it is worth it to ever apply directly to a firm without connections,

Well sure - very low investment, but rather unlikely to get a response. What's the downside? You're not wrapping your resume around a brick and throwing it through the window, right?

It sounds as if you're not in Chicago now; if you were, the best bet would be to call a few people there and ask for informational interviews - take them to lunch. Even if you're not, you could just call a few people and see if they'll talk to you. They're likely very busy, so keep the initial contact very brief and to the point.

There's a reason the whole contacts thing works so well. People like talking about themselves. People like "discovering" new talent. They prefer hiring someone they already have a relationship with. Many people like helping other people just. . to help them. In your earlier post you made it sound as if contacts were something you were born with. The fact that you're five months ahead of schedule is great partially because it may allow you to network some.

Best of luck, and please keep us updated on what works and what doesn't work for you.

 

[AccAcc]

Well sure - very low investment, but rather unlikely to get a response. What's the downside? You're not wrapping your resume around a brick and throwing it through the window, right?

It sounds as if you're not in Chicago now; if you were, the best bet would be to call a few people there and ask for informational interviews - take them to lunch. Even if you're not, you could just call a few people and see if they'll talk to you. They're likely very busy, so keep the initial contact very brief and to the point.

There's a reason the whole contacts thing works so well. People like talking about themselves. People like "discovering" new talent. They prefer hiring someone they already have a relationship with. Many people like helping other people just. . to help them. In your earlier post you made it sound as if contacts were something you were born with. The fact that you're five months ahead of schedule is great partially because it may allow you to network some.

Best of luck, and please keep us updated on what works and what doesn't work for you.

Thanks for the encouragement!

I'm actually at one of the nearby labs, but live further out, so meeting with people on workdays takes a bit of finagling. Many have suggested aiming for informational meetings, but I don't really know who to aim for, or how to initiate, or under what context or pretense to really push it.

"Five Months Ahead of Schedule" is kind of optimistic, as that's basically "When I'm losing my job"! Things should be sorted it far in advance of that.

 

[AccAcc]

What are the "correct' answers to why I'm interested I'm interested in doing Finance when, and what should I include in my cover letters to make me seem sincere? I'm leaving a field of a physics that actually has a great job market, so I'm not doing this just because Plan A failed.

Also, should I include that I am US Citizen in either my cover letter or my resume? Where/how is the tactful way to say it?

 

[Vanadium 50]

Ah yes, sincerity. If you can fake that...you have it made.

Why are you interested in doing finance? And can't you just say that?

 

[AlephZero]

Also, should I include that I am US Citizen in either my cover letter or my resume? Where/how is the tactful way to say it?

Why do you need to be "tactful" about it?

IMO The obvious place to put your nationality and citizenship is right after your name and address at the top of your CV. If somebody doesn't want to employ a US citizen for some reason, trying to hide the fact won't change the situation!

 

[Locrian]

It can be very hard to explain why you want to work in a new career in the very brief time you have in a cover letter or initial interview. Frankly, I advise against much explanation along those lines.

For the cover letter, touch on three things: 1) That you will be working in the financial sector in the future. 2) Why you want to work for that particular firm. 3) What you'll do for them.

Not necessarily in that order. And be brief. (There's a part of me that thinks you actually state those in the reverse order - 3,2,1 - even if it sounds a bit strange).

Use similar language in the initial interview. Focus on the future as much as possible.

Keep in mind that very few employers really care why you want to change careers. They might be interested, or curious, but they don't care. What they do care about is that you want to work for them, that you bring something to the job, and that you'll stay once you're there.

If they ask more than once about the career change be sure to not say anything negative. Say something positive about finance, state clearly that you will not be working in physics in the future, and focus on what you'll bring to the job.

 

[AccAcc]

Thanks for all the help and responses:

Why do you need to be "tactful" about it?

IMO The obvious place to put your nationality and citizenship is right after your name and address at the top of your CV. If somebody doesn't want to employ a US citizen for some reason, trying to hide the fact won't change the situation!

I'm not entirely sure if it is taboo, as it is to include your clearance status when applying for jobs that require security clearance. For things that Ph.D.s in Physics apply to, citizenship status wouldn't seem out of place, but I'm aiming fairly broad with my job hunt.

Ah yes, sincerity. If you can fake that...you have it made.

Why are you interested in doing finance? And can't you just say that?

I think that is sufficient, but I know that many of the Physics->Finance people kind of bounce out of the interview process when flubbing that question. Many make the transition because of money, or because it is there, but it is something that I'm genuinely interested in.

It can be very hard to explain why you want to work in a new career in the very brief time you have in a cover letter or initial interview. Frankly, I advise against much explanation along those lines.

For the cover letter, touch on three things: 1) That you will be working in the financial sector in the future. 2) Why you want to work for that particular firm. 3) What you'll do for them.

Not necessarily in that order. And be brief. (There's a part of me that thinks you actually state those in the reverse order - 3,2,1 - even if it sounds a bit strange).

Use similar language in the initial interview. Focus on the future as much as possible.

Keep in mind that very few employers really care why you want to change careers. They might be interested, or curious, but they don't care. What they do care about is that you want to work for them, that you bring something to the job, and that you'll stay once you're there.

If they ask more than once about the career change be sure to not say anything negative. Say something positive about finance, state clearly that you will not be working in physics in the future, and focus on what you'll bring to the job.

Sounds like good advice.

 

[meanrev]

What are the "correct' answers to why I'm interested I'm interested in doing Finance when, and what should I include in my cover letters to make me seem sincere?

I don't know if there is any 'correct' answer and I realize when you're truly sincere about it, you'll never actually think about the question! I'm not in exactly the same position as you since you've gone much further in physics than I have. But I've been asked the question many, many times - by MDs at fund administration firms, accounting firms, prime brokerages, investors, funds of funds; other institutional traders, so maybe my response is relevant in this thread.

I don't have a coined answer.

I simply elaborate the circumstances. I talk about my passion in physics, the research I've done to demonstrate this, then I explain why finance came across as a natural extension to what I was already doing and how I didn't know about that if not for coincidence of attending another person's research presentation. I give examples of how I was using the same techniques in both fields; I also contrast both fields and how finance is marginally better than the field of physics I was in (at this point I make it sound that I assume that finance is really a branch of what I was already doing). I also explain how I've been flip-flopping between different kinds of strategy games since I was a kid, and there was a part in what I do that feels like a game I've played before. Generally, depending on the situation, there's a piece of finance trivia that I know and I point it out. I tell them what's interesting about my job.

Generally, the interaction does the rest of the talking. Someone will bring up, "Recently, many firms seem to be hiring [people from a particular field]... what do you think of [techniques from particular field] for [improving what you do]." I usually have a very opinionated, emotive, but also substantiative answer for the question. It's difficult to have that kind of answer unless you genuinely enjoy your field.

Sometimes I get the question semi-accusingly - this typically comes from people outside of the financial industry - as though I need to defend some kind of conviction to money. My answer is again quite circumstantial: I point out that I live a very modest life, I give examples.

Lastly, I'm pretty risk-averse and slow-paced... I know a few other prop firm owners who are like this. So I get the feeling that someone is BS-ing about his passion for finance when he brings up his attraction to the opposite.

 

[AccAcc]

I don't know if there is any 'correct' answer and I realize when you're truly sincere about it, you'll never actually think about the question! I'm not in exactly the same position as you since you've gone much further in physics than I have. But I've been asked the question many, many times - by MDs at fund administration firms, accounting firms, prime brokerages, investors, funds of funds; other institutional traders, so maybe my response is relevant in this thread.

I don't have a coined answer.

I simply elaborate the circumstances. I talk about my passion in physics, the research I've done to demonstrate this, then I explain why finance came across as a natural extension to what I was already doing and how I didn't know about that if not for coincidence of attending another person's research presentation. I give examples of how I was using the same techniques in both fields; I also contrast both fields and how finance is marginally better than the field of physics I was in (at this point I make it sound that I assume that finance is really a branch of what I was already doing). I also explain how I've been flip-flopping between different kinds of strategy games since I was a kid, and there was a part in what I do that feels like a game I've played before. Generally, depending on the situation, there's a piece of finance trivia that I know and I point it out. I tell them what's interesting about my job.

Generally, the interaction does the rest of the talking. Someone will bring up, "Recently, many firms seem to be hiring [people from a particular field]... what do you think of [techniques from particular field] for [improving what you do]." I usually have a very opinionated, emotive, but also substantiative answer for the question. It's difficult to have that kind of answer unless you genuinely enjoy your field.

Sometimes I get the question semi-accusingly - this typically comes from people outside of the financial industry - as though I need to defend some kind of conviction to money. My answer is again quite circumstantial: I point out that I live a very modest life, I give examples.

Lastly, I'm pretty risk-averse and slow-paced... I know a few other prop firm owners who are like this. So I get the feeling that someone is BS-ing about his passion for finance when he brings up his attraction to the opposite.

Thank you for the reply. Yes, I know a lot about the bolded #2. People have often seemed shocked when I say I'm interested in leaving for Finance, as if it is a bottom rung of the ladder, but to me it seems like it is focused on the aspects of my current research that are the most interesting to me, and I've always been interested in Econ and financial stuff. A speaker at Fermilab (in a talk organized by both Fermilab and Argonne), highlighted "It's all modeling", and I think that is the right attitude to have; while the context may be different, the skills are mostly the same, and that's something all Physicists should remember when they face leaving physics for good.

 

[AccAcc]

Another question:

I'm in Chicago. I prefer to get a job here, even knowing that they pay less. I would be willing to move to New York. I don't want to have to pay to fly to interviews. Would interviews for quant jobs allow for some reimbursement of travel, or should I expect to have to move to New York before having a job lined up, so I can interview?

Also, with regards to what places would actually higher in Chicago. I've gone down a list of Prop Shops, checked for openings, and applied to them. Next up is Hedge Funds (which there aren't many of). What other class of business should I be applying to? Which type is the easiest to get your foot in the door at? There aren't that many banks HQ'ed in Chicago.

 

[fmfnog]

First I would like to thank everyone that replied to this thread.

I am in a similar situation as most people who were asking questions here. I am about 1 year away from finishing my Ph.D. in string theory, and have used numerical methods and programming tools such as Mathematica, Maple and Matlab in my research. I am in the process of improving my C++ abilities, haven't really touched it since undergrad, and I am also collecting material on math applied to finance so I can start studying it soon.

With that being said, the questions that remain after reading this thread are regarding internships, their value, importance and how much effort should be put into getting into one.

For context I am an international student in Canada (english is not a problem). Where I live that are a few firms that develop code and / or deal directly with trading. I have reached to a former postdoc, who now works to one of these firms, and was able to get some information regarding what they were looking for, interview process, and he mentioned that they do hire paid interns. Should I get in touch with them, maybe apply to an intern position? I must also add that I work as a T.A., so some days of the week are taken.

 

[Locrian]

I have reached to a former postdoc, who now works to one of these firms, and was able to get some information regarding what they were looking for, interview process, and he mentioned that they do hire paid interns. Should I get in touch with them, maybe apply to an intern position?

Why not? How do you plan to do contact them? Brick through a window? Skywriting? Singing telegram?

If you're planning on sending an email with your resume attached and then following up with a phone call, I don't think you have anything to lose. Having a contact there could be a huge help.

However, I do think the TA will present some significant issues. Contacting them may help for when you get your PhD down the road.