PhD Physics Student Seeking Quant 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.