Stephen Wu, a 29-year-old from New York, made a significant career shift, leaving behind his tech roots to build a hedge fund. His move highlights a growing trend of professionals leveraging skills from one sector to find success in another. This essay, based on a conversation with Wu, delves into his journey from software engineering to finance, revealing how his experiences at Amazon and Microsoft equipped him for this new challenge.
From Software Engineer to Hedge Fund Manager
Wu’s career began in the tech industry after studying computer science and philosophy at Carnegie Mellon University. He started at Amazon Alexa, building the music recommendation system. Reflecting on his time there, Wu said, “If you ask Alexa to play Taylor Swift, my team built the system that recommends similar songs to listen to afterward.” This role allowed him to blend his passion for music with his engineering skills, a combination that proved valuable.
“I loved working at Microsoft and worked there for about three years. In my free time, I dabbled in hedge funds, which are any fund using a non-traditional investment style,” he explained. It was during this time that he began to explore the world of finance.
His time at Amazon taught him efficiency and the importance of prioritizing tasks. He explained that, “Instead of building it right the first time, Amazon allowed me to create the minimum viable product usable to meet the deadline. While working there, I learned a lot about prioritization and efficiency.”
Leveraging Tech Skills in Finance
Wu emphasizes that his tech background provided him with a unique perspective on trading and financial markets. “Because I built statistical models and AI algorithms recommending songs to users at Amazon Alexa Music, I understand the statistical behavior of price movements. This allows me to take a more data-driven, probabilistic approach to trading, while most fund managers focus on financials.” His understanding of technical debt, a concept he learned at Microsoft, also proved incredibly valuable.
His time at Microsoft gave him the opportunity to work in an engineering heavy business role. He was involved in building and planning the machine translation system used by Microsoft Azure. This blend of business and technology would be a key factor in helping move forward with his new project.
Building a Hedge Fund
Armed with this knowledge, Wu started his hedge fund, raising nearly $10 million from a diverse group of investors. “I raised almost $10 million from friends, family, high-net-worth individuals, influencers, and others in the hedge fund space that first year,” Wu stated. He focuses specifically on options trading, particularly after periods of market volatility. “Fundraising was difficult initially, but I allowed investors to try with a small amount first and see the returns for themselves. The minimum amount to invest is $100,000.”
Wu expressed how much he loves his career change and his passion for trading. “Trading is more fun and more money than tech.” He aims to grow his fund to $100 to $200 million in the coming years, a goal he believes is within reach, given the success he has experienced so far. “I love trading. It’s fascinating because it’s like solving a puzzle every single day.”
His journey underscores the transferable skills gained in the tech industry and highlights the possibilities of finance for those willing to take a risk and make a career change. The fast-paced, dynamic environment of trading provides Wu an opportunity to combine his analytical skills and passion for problem-solving in a way that aligns with his career goals.
