Quant Jobs Report - CMU 2025

Episode Overview

• Bob Simon, Director of Carnegie Mellon's MSCF program, discusses the program's latest employment report.
• The episode explores how CMU prepares students for top quant roles, particularly in quantitative research, a field often dominated by PhDs.
• Key topics include the program's curriculum philosophy, the importance of fundamental skills over job-specific training, and the evolving landscape of quantitative finance.
• Bob shares insights on salary expectations, industry trends, and what makes an ideal candidate for a top-tier financial engineering program.

Key Concepts

• CMU MSCF Employment Report: A detailed look at the job functions, industries, and locations where graduates find employment, with a significant 48% entering Quantitative Research roles.
• Training "Engineers, Not Electricians": CMU's educational philosophy focuses on teaching fundamental, transferable problem-solving skills. This prepares graduates for a dynamic and evolving industry by equipping them to adapt to new technologies and challenges, such as the rise of AI.
• The Role of Faculty and Curriculum: The program utilizes a hybrid model, combining tenured university professors for core theoretical subjects (like stochastic calculus) with industry practitioners for applied, cutting-edge topics. This is supported by a strong feedback loop from an extensive alumni network.
• Industry Expansion: Quantitative methods are expanding beyond traditional equity markets into areas like commodities, energy, private equity, and systematic credit, creating new opportunities for quants in less saturated fields.
• Ideal Candidate Profile: The program seeks the "best available talent" with a strong STEM background (math, stats, CS, physics, engineering) and a well-researched, genuine interest in quantitative finance, valuing diversity of thought and background.

Quotes

• At 00:23 - "I'm the director of the MSCF program, the Master of Science in Computational Finance program at Carnegie Mellon." - Bob Simon introduces himself and his role in the program.
• At 04:13 - "I always use kind of the saying that we train electrical engineers and not electricians." - Bob explains the program's philosophy of focusing on fundamental, adaptable skills that allow graduates to solve future problems, rather than just training for today's specific job tasks.
• At 09:05 - "You even see it filtering into things like investment banking." - Discussing the expansion of quantitative methods, Bob notes that even traditional finance areas like investment banking are increasingly adopting quant techniques.
• At 24:41 - "We look for the best available talent, regardless of where it sits or, you know, specifically what that training's been." - Bob summarizes the program's admission philosophy, emphasizing that they prioritize raw talent and core STEM skills over a rigid checklist of specific backgrounds.

Takeaways

• Focus on Fundamentals Over Fleeting Trends: Aspiring quants should prioritize building a deep understanding of core principles in math, statistics, and computer science. This "engineer" mindset provides a more durable and adaptable skill set than simply learning the "electrician" tasks of today's market.
• Understand the Nuances of Job Titles and Compensation: A "Quant Researcher" role and its compensation can vary significantly between a large investment bank and a small hedge fund pod. Look beyond the MBA-standard reported numbers (base + signing) to understand the full potential compensation, which often includes a substantial year-end performance bonus.
• Explore Quant Opportunities Beyond Traditional Markets: The application of quantitative techniques is rapidly growing in less-saturated fields like commodities, energy, private equity, and systematic credit. These areas may offer significant alpha and career growth opportunities for those willing to look beyond equities and derivatives.