As a preschooler, math whiz Eric Liu could compare packages on supermarket shelves and determine the best value by estimating the price-to-volume ratio.
“That’s not too different than what I do now with stocks,” says Liu, 26. As a quantitative research analyst at Cubist Systematic Strategies, a division of the hedge fund Point72 Asset Management in New York City, Liu analyzes data sets to forecast trends in stocks, bonds, currencies and other financial derivatives in today’s increasingly complex financial market.
Banks and hedge funds need people to guide their investing who both understand finance and who can also use big data, computer science, statistical analysis and computational modeling to spot and anticipate what’s ahead. Engineering grads are uniquely qualified for the job.
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Liu, who grew up in Vancouver, spent three years developing startups with friends after graduating from the University of British Columbia with a combined bachelor’s in mathematics and economics, then entered the Stanford University School of Engineering‘s new two-year master’s program in computational math and finance.
After a summer 2015 internship at a hedge fund, he was hooked on data science and modeling in finance, where analysts typically work with everything from satellite images of parking lots to data on retail store openings. Liu ended up at Point72, where he is tasked with developing “the story behind the models” so as to boost the odds of upping profits. More often than not, he says, the models get it right.
Now that big data has begun influencing the financial world in a big way, says Emanuel Derman, director of Columbia University‘s master’s in financial engineering program, grads are increasingly taking their data analysis and modeling skills to hedge funds.
[Understand how big data is being used by education and health care startups.]
Another popular landing spot is the financial technology “fintech” sector, where technology is driving innovation in financial services with companies and apps like PayPal, Venmo and Mint.
Jobs for quantitative analysts are projected to grow 12 percent in the next several years as investment portfolios and securities become more complex. Due to the unique blend of math, finance and computer skills needed, quantitative analysts command high salaries. Entry-level positions usually require a master’s , and average starting salaries top $100,000.
Quantitative analytics isn’t the only hot career track for engineering grads. These are a few others.
–Biomedical engineer: Combining engineering with the medical sciences, these cutting-edge designers help create artificial organs and prosthetic limbs, often working closely with doctors to replicate biological systems. An aging population in need of hip and knee replacements and rapid innovations in medical technology like 3-D printing are driving demand for talent. Employment is expected to grow 23 percent from 2014 to 2024. Median salary in 2015 was $86,220.
[Explore hot jobs for future engineers.]
— Computer software engineer: In the quickly evolving software sector, engineering graduates with mobile and cybersecurity skills are highly sought after. Companies are developing new systems and apps and are relying more on cloud and mobile computing, spurring the need for skilled professionals. Expert projections estimate 10-year job growth will be 32 percent, especially in the health care and security industries. Median salary was $105,570 in 2015.
–Mechanical engineer: These pros help develop engines, products and machines using the latest design tools and technology. Opportunities abound in a range of expanding sectors like hybrid-electric car design, alternative energy and nanotechnology. While job growth may not be as dramatic as in other fields, a solid increase of 5 percent is expected from 2014 to 2024. Median salary in 2015 was $83,590.
This story is excerpted from the U.S. News “Best Graduate Schools 2018” guidebook, which features in-depth articles, rankings and data.
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