Demand for Aussie quants no longer quite so quiet
Demand is building for quantitative analysts on the back of improved market conditions, according to investment experts and recruiters.
In the years leading up to the global financial crisis, quant strategies enjoyed a level of success. "However then those strategies got smashed with the market in general, so now it's fair to expect demand for quants to be picking up," says Greg Canavan, a financial analyst with investment newsletter Sound Money. Sound Investments.
John Coles, CEO, Executive Group International, confirms that quants are more sought after now. "When there is a downturn, quants along with small cap and proprietary traders always get it in the neck. But as we've regularly seen over the past 25 years, as the market picks up, there is a mad scramble to employ quants again," he adds.
The big investment banks are in the recruitment market for quants and have a preference for senior ones. "However it's difficult to get experience in quantitative analysis," says Coles.
As for earning capacity, it's a case of how long is a piece of string? However, Coles can confirm salaries depend on experience and market-cycle timing. "New graduates can expect to earn $40k to $50k, while a five-to-eight-year veteran, depending on his or her expertise and previous success, can earn between $200k and $300k."
That said, demand for quants isn't about to skyrocket, with one recruiter who asked not to be named, suggesting that the i-banks employ one quant for every 10 equity analysts.
Generally speaking, to break into quantitative analysis, candidates need a bachelor of science with a mathematics or computer science major. "As they move up the ladder, often they'll get additional qualifications such as a PhD," adds the anonymous headhunter.
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