Sandeep Bhutani, University of California at Berkeley

Abstract

In an interview, Sandeep Bhutani answers various questions, such as: 1. Why did you choose to pursue a master's degree in finance, and why did you choose the University of California at Berkeley's program? 2. What is your math background? Do you have any prior programming experience? 3. What classes are you taking that will be essential to helping you be more prepared for a job on Wall Street?

Vital Stats

Hometown: Bangalore

Master's Program: University of California at Berkeley (Haas School of Business), Master in Financial Engineering

Additional Graduate Work: Master of Science in computer engineering from the University of Southern California

Undergraduate Degree: Bachelor of Technology in electronics and communications from the India Institute of Technology at Madras, India

Honors: I'm currently in the top 20 percent of the class.

Internships: I will be doing an internship at Standard & Poor's in New York in October.

Mentor: I don't have a direct mentor, but a few years ago I read a lot of books on economics. The book "Fortune's Formula," by William Poundstone, which goes into detail about financial engineering and talks about the first financial engineers, got me interested in this. So the book became a mentor, of sorts.

Q&A

AT: Why did you choose to pursue a master's degree in finance, and why did you choose the University of California at Berkeley's program?

Bhutani: When I was working in electronic design automation, I was good at coming up with models. I was working to program and develop mathematical models for electrical engineering. I realized I wanted to contribute on a more complete level and decided on a master's program. The main reason I chose the Berkeley program was the very strong faculty - everyone is a leader in their fields. It's a top program and very exciting.

AT: What is your math background? Do you have any prior programming experience?

Bhutani: In math, I have an undergraduate degree from the India Institute of Technology at Madras in electrical engineering, which gave me exposure to a large number of applied math techniques, such as signal processing, Laplace transform-based analysis techniques and numerical analysis. Then I had the opportunity to build on this when I was working in the electronic design automation (EDA) industry, where my primary responsibility was in mathematical modeling of circuits. I developed several unique models, which I later patented.

In programming, my master's degree is in computer engineering from USC, where I learned my first level of programming. As a software engineer in the EDA industry, I did a lot of programming in C/C++/MATLAB, etc. We were one of the first few to move to STL when it was still sold by ospace. I was also responsible for pioneering the use of Boost at my previous employer.

AT: What classes are you taking that will be essential to helping you be more prepared for a job on Wall Street?

Bhutani: Definitely classes in econometrics, derivatives and fixed income. What I actually found very useful was a project that makes you define a problem and then solve it. Normally the problems in the real world don't come out nicely packaged, but I found the project useful to get experience. But I've learned so much in econometrics and also stochastic calculus.

AT: Why did you choose to pursue a career on Wall Street?

Bhutani: I had been reading about economics and finance for a long time, and I read "Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street," by William Poundstone, and thought I might actually fit in here. It gives me the opportunity to do more mathematical modeling.

AT: What first interested you in Wall Street?

Bhutani: When I read "Fortune's Formula" and discovered - to my surprise - that I have two out of three essential skills for a position on Wall Street and the work on Wall Street was in line with my interests. That motivated me to explore the field further.

AT: In what type of role would you like to start?

Bhutani: There are two areas I'm focused on - one is algorithmic trading, specifically in platform development and mathematical modeling; and also quantitative development and the analysis of platforms for credit or exotics.

AT: What do you see yourself doing in two years? In 10 years?

Bhutani: I think my career growth will be in terms of the scale of the project and the responsibilities that I handle. In two years I'd like to be completely responsible for a large piece of software - such as mathematical models. Then at the 10-year mark I'd like to have contributed to every aspect of a product, from implementation to algorithms and innovations in mathematical models and developing trading strategies.

AT: Name three firms you'd like to work for.

Bhutani: Barclays Global Investors, DE Shaw and Renaissance Technologies.

AT: What sets you apart from other quant candidates?

Bhutani: I have done a lot of hands-on work and have a lot of experience in mathematical modeling. I also hold 10 U.S. patents. I think one of the big differentiators is my programming experience and the fact that I've managed and worked on many large projects.

AT: How would you rate your knowledge of the business of financial services, on a scale of 1 to 10?

Bhutani: I would say about 7 or 8. I've definitely learned a lot since coming to school and attending the financial practice seminars here at Berkeley. I had some knowledge before I came - I was a regular reader of the Wall Street Journal - but now I know much more.

AT: Discuss your training in statistics and your ability to analyze data.

Bhutani: I've done a lot of data analysis in my previous position. I also have experience in statistical analysis of data - looking at histograms, outliers and moments of the data to make sure they make sense. In signal processing analysis I also used various filtering techniques to look for patterns in data. There is also the axiomatic approach, which requires interpretation of equations to get a feel for the immediate results of data processing and see if they make sense - are there any patterns that the theory tells me should exist, etc.

AT: Do you trade at all? Have you ever built any algorithmic models for trading?

Bhutani: I consider myself an investor. I haven't really traded, though; never had the time. I did learn portfolio analysis a while ago and do a mean variance analysis on my portfolio every so often. I also did a team project in econometrics to link movements in FX data to movements in the equity market, the idea being that movement in FX caused by hedging by a big company would result in a move in its stock price.

AT: What do you enjoy doing in your spare time?

Bhutani: I love playing squash, hiking, biking, running - any physical activities.

AT: Name one thing you did this summer for fun.

Bhutani: I went on a cruise to Alaska for a week and had perfect weather. I also did a long mountain-bike ride.

AT: Describe one of your personal goals beyond a career on Wall Street.

Bhutani: My more near-term goal is to get to a new level in squash. I want to get back to an A level, where I was three years ago.

AT: Choose one word to describe yourself.

Bhutani: Persistent.

What three questions would you ask a prospective employer?

My first question would be: What do you think happened to Lehman Brothers? How are firms going to evolve in light of these big disturbances in the market?

Also, what kind of career path is there for the position I'm interviewing for?

I'm also keen on continuing my education, so what kind of educational assistance does the company provide? I'd like to complete my advanced degree in applied mathematics at some point.

-Interviewed by Cristina McEachern

http://www.advancedtrading.com

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