Changes on Wall Street over the past decade have encompassed everything from increased regulation to pushes for better work-life balance. These shifting trends have rendered the finance industry almost unrecognizable from the early 2000’s and the changes aren’t over yet. Technology is recreating the way banks do business with new apps and automated investing platforms contributing to the rise of a new industry, FinTech.
With the growing influence of technology over the financial services industry, there has been a corresponding demand for a new type of talent on Wall Street — tech professionals. Hundreds of finance companies are increasingly hiring tech talent to join their team as analysts, traders, portfolio managers and more to leverage programming skills to interpret data more efficiently.
This new breed of Wall Street-er’s aren’t your typical suit and tie wearing professionals. Graduating with Ph.D.’s in Computer Science, Mathematics, Data Science and more, these ‘masters of the universe’ are taking over in ball-caps and sneakers. Quantamentals, or Quantamental Managers, are the new hiring trend among hedge funds and asset management firms. They combine financial modeling skills with number crunching algorithms to identify better investments and scan through data sets from an endless amount of sources.
A few firms in particular like Point72 Asset Management and Tudor Investment Corporation are known for building their business around quantamentals. In an interview with Business Insider, the Chief Market Intelligence Officer at Point72 Matthew Granade dives into their view on quant investing and what they look for while hiring portfolio managers and traders. According to Granade, there’s still a divide between the typical analyst and programmer, but they’re working to change that.
“In a seven- to 10-year time frame, the portfolio managers at the top of these things are going to have been trained in all the different pieces, but right now we’re still in more of a transition period where we have these two tracks.” – Matthew Granade, Chief Market Intelligence Officer at Point72
There’s no doubt that this hybrid breed of talent will become more developed in the upcoming years with a better integration of the two skill-sets. For now, programming and coding skills are still highly coveted at finance firms, pushing the battle between Wall Street and Silicon Valley to the breaking point. If you’re looking for a new job in the finance sector, you better start brushing up on those coding skills (try CodeAcademy for free classes) because if you’re ready or not, tech professionals are coming to Wall Street.