I’m a high school student trying to plan my college path. My long term goal is to eventually start my own fund, either in private equity or quantitative trading.
I’m torn between two different routes and wondering which one makes more sense. The traditional finance path through investment banking seems like the standard way into PE, but the quantitative side looks more interesting with all the algorithmic trading and math involved.
From what I’ve read online, quant roles tend to have better compensation and work-life balance, while banking offers more networking opportunities and traditional exit options. The technical nature of quant work appeals to me since I’m good at math and coding.
Can anyone share thoughts on which path is better for someone wanting to eventually run their own fund? Also looking for specific college recommendations. I know about the typical target schools everyone mentions, but what about programs that are specifically strong for quantitative finance versus traditional business schools?
Hate to break it to you, but 99% of people who say they want to start their own fund end up in middle management somewhere. Both paths suck - quants get automated out every few years and investment bankers pull 100-hour weeks for sociopaths. If you’re set on this masochistic journey, pick whichever one you can actually stand doing for 10+ years before you think about running anything. Having your own fund means raising other people’s money, which is mostly sales anyway.
Both paths work, but timing’s everything. The quant hedge fund world has gotten brutal - tech costs and finding good talent make it way harder to break in. About 75% of new hedge funds crash within two years, usually because they can’t raise enough money or don’t have the right connections, not because their strategy sucks. Going the traditional investment banking route builds relationships and gives you credibility with institutional investors - you’ll need that to raise capital. But pure quant backgrounds can help you stand out with unique strategies in an overcrowded market. Check out MIT’s finance program or University of Chicago’s financial math - they mix both approaches really well. The fund managers who actually make it today combine solid quant skills with real market knowledge and the ability to work with investors.
The asset management world is changing fast - you need to see where it’s headed before picking a path. Even old-school fundamental analysis shops now use alternative data and ML models heavily. Don’t forget about regulatory stuff and investor relations when you’re thinking about running your own fund.
For school, find places with strong internship connections, not just fancy names. Columbia and Berkeley are great because they’re near major financial hubs - you’ll get hands-on experience with both quant methods and traditional finance while you’re studying.
If you want to start your own fund, nail down risk management first. Most funds don’t die from bad returns - they die from terrible risk controls or broken operations. Maybe add some actuarial studies or financial engineering to your mix. You’ll need solid skills in portfolio construction and staying compliant with regulations.
Both paths work great! You could double-major in math and finance to keep your options open. MIT, Chicago, and NYU Stern are fantastic at combining both fields. Either way, your coding skills will be huge assets.
You’re overthinking this. I did undergrad in engineering, then switched to finance - weird path but it worked. Most successful fund managers I know didn’t follow some perfect route. They just adapted when opportunities showed up. You’re already strong in math/coding, so look at schools with solid engineering programs AND good business connections. Northwestern or Duke come to mind. You’ll get the technical foundation while still having access to finance recruiting. Plus if the fund thing doesn’t work out (it’s crazy competitive), you won’t be stuck in something soul-crushing.
I made the jump from quant research to fund management, so here’s my take: don’t think of this as either-or. What kind of fund do you actually want to run? If you’re thinking systematic strategies and algos, go quant first. The technical foundation is nearly impossible to pick up later. But if you want fundamental analysis and deal-making, traditional finance gives you better exposure to valuation and market dynamics.
For schools, look at Stanford’s Mathematical and Computational Finance or Princeton’s Operations Research. Both bridge the gap well. Carnegie Mellon’s computational finance program is solid too if you want hardcore quant.
Here’s the thing - successful funds today need both skill sets. Most run systematic AND discretionary strategies. I’d lean toward starting quant because you can always learn business skills on the job. Trying to master advanced math and programming later? Much harder.
the whole “target school” thing is overrated. I’ve seen tons of people from random state schools crush it because they had the skills and work ethic. Baruch’s quant program is incredible and costs almost nothing compared to Ivy League tuition - their MFE grads get hired all over Wall Street. before you rack up $200k+ in debt, ask yourself if it’s worth it when you can teach yourself python and R.