Quant Traders: Real Rocket Scientists? Magic? Rulers Of Wall Street

Known as the “the Rocket Scientists of Wall Street” (as initially labeled by Investopedia) Quant traders or analysts –  “Quants” – maybe understandingly intimidating to many. However, as their returns increase, more are becoming aware of their power. Quants are a specialized set that cannot be ignored…

Quants apply mathematical and statistical methods in order to create algorithms to solve financial and risk management problems. Their tech solutions are replacing humans in the investment set. As David Siegel, Founder of Two Sigma Investments put it (2014):

“No human investment manager will be able to beat the computer”

Despite his cynicism, recent years have proved Siegel’s thesis correct. In May 2017 Two Sigma’s assets under management reached $45 billion, up from $32 billion at the start of 2016. This brought it up to the number two spot (behind Renaissance Technologies, also a quant fund) as the nation’s second-biggest hedge fund firm.

With these returns, those outside the Quant- niche are taking notice. In 2017, CNBC headlined “‘Quant:’ the buzzword hedge fund workers can no longer afford to ignore.Forbes, also, published “Quants Are Eating Away at Wall Street’s Edge” this past March. In June Bloomberg published “ Robots Are Eating Money Managers’ Lunch” focused on a similar theme.

While no media outlet wants to blatantly tell their audience that tech’s stronghold on the finance industry means that their subscription readers’ jobs are dead, headlines continue to draw attention. Depicting a monarchy, this May Wall Street Journal published “The Quants Run Wall Street Now.”  The Journal named Quants as the “New Kings of Wall Street” the same month.

Think you want to join their rankings?  Check out Byte Academy’s Intro To Quant Algos and Quant Algos part-time courses (no experience required).

Are #Quants: Rocket Scientists of #WallStreet? (Do you need to protect your lunch?) Click To Tweet

Thanks for the comment
No Comments

Other Suggested Reads

  • Student Interview: From Aerospace To Blockchain CTO

    Meet recent grad Stephane Gallet, whose background includes founding a travel company (based in Brazil) and aerospace.  Even before  graduating Byte's immersive blockchain  bootcamp program, Stepha...
  • 5 Things Employers Look for in a Graduate

    Looking for a job after graduation? With more and more students graduating every year, employers have a huge choice when it comes to selecting the most highly skilled and qualified candidates. Therefo...
  • Blockchain is passé (It’s All About DLT)

    The SEC and Goldman Sachs have recently tackled the over-and often misleading-usage of the word “blockchain.”  To remedy this perhaps, companies are banning the use of the word “blockchain,” ...