The finance professions where hiring will be the hottest in 2020
If you want a new finance job in 2020, you will have a better chance of applying for some positions than others. This year has already started volatile, so what applies now might have changed by the time you collect your CV / CV. However, assuming some degree of consistency, recruiters on both sides of the Atlantic say these are the ideal areas for hiring this year.
1. Electronic commerce
No surprises here. Stuart Riley, global head of operations and technology for Citi’s Institutional Client Group (ICG) told Bloomberg yesterday that 75% of Citi transactions were placed electronically last year. The real hot spot this year, however, will be the electronization of bond trading.
The North American Quantitative Recruiting team at recruiting firm Selby Jennings anticipates a continued demand for electronic bond trading expertise and demand for skills in the areas of “alpha signal generation, statistical analysis, data analysis and trading technologies ”.
David Hobert of research firm Shadowhound says there is also a growing demand for middle and senior executives to fill the compliance and risk positions that support e-commerce.
2. Big data, machine learning and artificial intelligence
This too has been a trend for a few years now, but still has a way to go. North American quantitative recruiters at Selby Jennings note that some banks have struggled to implement a successful data and machine learning strategy in the past, and that banks that have integrated teams within market offices capital has been the most successful. They don’t mention JPMorgan by name, but JPM is known to take this approach after disbanding its centralized AI team in 2018. However, the US bank is also now hiring for a new separate AI company in Silicon Valley.
It’s not just banks that want data and AI expertise, Selby Jennings’ team notes that private equity funds are also getting into the game. Matt Zames has been build an AI team at Cerberus under the guidance of a former JPMorgan data expert Len Laufer. Old-fashioned consulting roles are also succumbing to the data revolution: Lazard wants to build a automated activist advocacy tool powered by artificial intelligence.
3. Alpha capture in hedge funds
If you work in quantitative hedge funds, the new buzzword is “alpha capture” or, in the words of the North American quantification team at Selby Jennings, “creating strategies by reverse engineering fundamental signals. and business decisions in systematic models ”.
As funds try to find the magic recipe for alpha generation, Selby Jennings predicts more alpha capture hires in 2020. Several companies are trying to build new teams, others (eg Fusion at Point72) are already operational.
Due to a shortage of alpha capture expertise, Selby Jennings says funds are willing to be flexible in who they hire. “We’ve seen mangaers start to consider researchers with a more general quantamental or long short equity background who can be trained as alpha capture experts.”
4. Women equity researchers on the buy side
This year, the focus will also (always) be on hiring women. Natalie Basiratpour, director of the recruitment firm Octavius Finance, says there is a steady hiring of equity researchers in the long space alone, “especially with companies looking to diversify their teams and hire women. “
Speaking unofficially, a Wall Street stock recruiter said diversity will be “in the foreground” on everyone’s mind this year. “No hiring will be approved from a self-respecting house, unless the hiring manager can prove that they have actively sought the candidate in an inclusive diversity pool. ”
5. Juniors in “quantum” funds
Recruiters say there is also a strong demand for juniors who wish to work in fundamental funds who wish to become ‘semi-quants’ by introducing systematic techniques in portfolio construction and risk, and to start using techniques. data science to support investment decisions.
“It will likely be a hot zone in 2020 for more junior / intermediate level applicants,” said Basiratpour. Established portfolio managers will be in less demand here, she adds: These funds don’t want to pay quantitative PMs or give them money to manage.
6. Most jobs at Plano
If you are looking for a finance or finance tech job in Texas, now is the time. JP Morgan is expected to move thousands of jobs there (and to Columbus and Wilmington) this year.
7. Women in private equity funds
As with women in equity research, so are women in private equity. Notably male-dominated, private equity funds seek out women to resolve their gender imbalance. Edward Chamberlain, chief executive of private equity research firm Altus, says private equity funds are hiring women under pressure to diversify their investment teams.
8. Quants in compliance
It was also a trend last year (Goldman Sachs, for example, has been busy build a surveillance analysis team in Bangalore) and should remain a thing in 2020. Matt Nicholson, director of Selby Jennings Europe, says: “Ipeople with quantitative training are recruited into historically very qualitative roles, with compliance (especially oversight) being one such area as banks seek to create and use quantitative techniques / models and manipulate large datasets to monitor their activity and stay compliant. “
9. Mid-market bankers in the United States
It is also a trend that was born in 2019 (witness Goldman’s cross markets team), but still has a way to work. Stefan Pillinger, head of US financial services at recruiting firm Pinpoint Partners, said mid-market M&A hires are expected to remain high next year and not just at the big banks: “We expect very active recruiting from top mid-market banks as they seek to challenge the largest franchises in specialist areas. “
10. Junior Vice Presidents and General Managers Producing Income in Investment Banking Divisions
Pillinger also predicts strong demand for the first and second year vice-presidents (VPs), who he says “will continue to be among the top bankers”. By comparison, he predicts that investment banking managers, “will continue to suffer from the compression of the promotion market ”because they are either promoted quickly or not at all. Managing Directors General Income Producers (DM) will still be in demand though, Pillinger predicts, both in bulge brackets and in boutiques.
11. Dealers in structured loans and mortgages
Finally, it is no coincidence that Goldman Sachs promoted so many structured credit professionals to the CEO in 2019.
Linda Petrone, former MD of Goldman and UBS and founding partner of Sage Search Advisors in New York City, says she sees, “strong hiring and a lot of movement in structured credit, including secured loan bonds and direct loans.
London-based Rosehill Search’s Kumaran Surenthirathas says structured credit is experiencing a renaissance as competition in the financing business intensifies. And Vickram Tandon, founding partner of A-Squared Search in New York, says: “We talk a lot about credit and mortgages are making a comeback. “
Finally, Hobert says US and European banks are keen to add to their expertise in credit selling and Wall Street trading, especially when it comes to selling structured solutions.
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