Preparing the Next Generation of Quants
uantitative finance, which uses data-driven mathematical models to analyze securities and markets, is experiencing an impressive surge in hiring. The U.S. Bureau of Labor Statistics has projected overall employment for financial analysts—an occupation that includes large numbers of quants—will grow by 9% from 2023–2033, while more specialized roles, like financial quantitative analyst, will grow an estimated 5.55% over the next five years. This trend is being driven, in large part, by machine learning, AI, and data analytics, which are opening vast opportunities for professionals in quantitative trading, automated market making, as well as quantitative portfolio management, and investment research across diverse asset classes such as equity, fixed-income, credit, cryptocurrency, commodities, and private markets.
The MSQF program prepares students to thrive in this competitive field. It builds a firm foundation in mathematics, while immersing them in the field of data intelligence and equipping them with the knowledge base and tools to capitalize on evolving trends in the industry. As the availability and volume of data increases exponentially and the processing capabilities of computers continues to advance, the program is honing students’ skills in assessing and analyzing data with ever-greater agility, speed, and proficiency.
Students are also learning how to think beyond the numbers to fill in gaps and draw informed conclusions. “Machines are not good at abstract thinking. This is where mathematics is critical. You need quants to come and tell you what the data says,” explained Clinical Professor Qing Sheng, Ph.D., faculty director of the MSQF program. Also, as data is not perfect, students are trained to question their underlying assumptions, determine the quality of the data and, if necessary, come up with new models to give them a truer picture of markets and securities. “In quantitative finance, you first have to see a pattern that others have not realized. Then you have an advantage,” Sheng asserted.
In addition to developing the skills to succeed in an environment of infinite data and futuristic technology, students are also learning about market trends like the shift in market players. According to Associate Professor Andrey Ermolov, Ph.D., small individual investors with some quantitative background have bypassed larger organizations to be part of the market themselves. This has led to an array of new tools, such as a zero date to expiration (0DTE)—an options contract that expires within a day, but which offers the potential for making a quick profit, or loss, on a small price change in a security. Ermolov said that students who have the skills and expertise to manage these short-term options will be in demand.
It’s not always easy to get students to break out of silos and see the value of learning fundamentals. Professor Ren-Raw Chen, Ph.D., relayed that when he taught a lot of math in his AI class, some students just wanted to focus on programming and leave mathematics to the mathematicians—but Chen made sure that his students “coded from scratch and knew the math so that they can show the quantitative finance knowledge they possess.”
In response to the seismic changes artificial intelligence is having on quantitative finance, the Gabelli School is introducing a slate of new courses. AI in Asset Management and Blockchain, Cryptocurrency, and Crypto Algorithmic Trading, along with a forthcoming course called Agentic Portfolio Management, “reflecting our commitment to ensuring students gain both a rigorous foundation and exposure to emerging technologies that are reshaping the financial industry,” Sheng said.
In addition to ensuring the curriculum is at the cutting edge, bringing industry leaders into the classroom offers students real-world perspectives on the day-to-day reality of the markets and the workplace. For example, Ermolov invites Fordham alumni and other professionals from JPMorgan Chase, Citibank, Wells Fargo, and other financial organizations to his classes for learning and networking.
Giving students hands-on experience that complements classroom instruction is a hallmark of the MSQF program. Students have opportunities to participate in a wide range of projects designed to develop specialized skills. For example, Chen connected five of his students with Gabelli School alumni from Credit Suisse and the Bank of Nova Scotia to work on AI projects. The relationship resulted in a research paper that was published—one of many papers through the years that has given students practical experience and exposure. “The purpose of these programs is to prepare students for the job market of the future. We’re not teaching them general knowledge. These are specific skills they need to master,” Chen said.
FOR WHAT’S AHEAD…
The annual QuantVision conference hosted at Fordham’s Lincoln Center campus, features a series of high-powered presentations combined with many networking opportunities. First held in 2024, QuantVision was a joint effort between the MSQF Program and Rebellion Research, a global machine learning think tank, artificial intelligence advisor, and hedge fund. QuantVision connects students with recruiters, hedge fund founders, and thought leaders in the quantitative finance field.
“It’s a job fair meets a learning place meets networking,” noted Alex Fleiss, CEO of Rebellion Research, an MSQF program advisory board member, and research instructor at the Gabelli School. The 2024 QuantVision conference featured eight hedge fund recruiters—giving invaluable access to students, Fleiss commented. “You need to know people in this industry to really have a much better chance of getting a job. A [student] from [the Gabelli School] can leave the conference with a dozen connections. We’re [putting] students face-to-face with people at hedge funds and banks that they want to work with.” he said.
With a curriculum that hones students analytical and technical skills, courses designed to encompass the latest industry trends and technologies, and a wealth of career-building and networking experiences outside of the classroom, the Gabelli School is educating top talent to excel and become leaders in the quantitative finance field.