Power & Gas Risk Manager - Quantitative Researcher

Paragon Alpha - Hedge Fund Talent Business; New York (NY); On-site; USD 200,000 - 320,000; Full time

Job summary

Paragon Alpha - Hedge Fund Talent Business seeks a Quantitative Researcher to join its Commodities Risk Management team in New York. The role focuses on building quantitative models for US Power, Natural Gas, and FTRs, working with PMs, Risk, and Tech to enhance risk analytics and pricing frameworks.

The candidate will develop forward curves, volatility surfaces, and scenario analyses while contributing to the risk framework and production risk infrastructure.

Qualifications

• 10+ years of experience in quantitative research, quantitative risk, or related fields.

Responsibilities

• Develop, maintain quantitative models to price and analyze physical and derivative commodity products across US Power, Natural Gas and FTRs.

Skills

Python

SQL

NumPy

Pandas

Quantitative modelling

Statistics

Communication

Education

Master’s or PhD in a highly quantitative discipline

Tools

Python

SQL

Job description

We are seeking an exceptional Quantitative Researcher to join our Commodities Risk Management team, reporting directly to the Head of Commodities Risk Analytics & Risk Advisory. This is a highly visible role partnering closely with Portfolio Managers, Trading, Risk Management and Technology to develop industry‑leading quantitative models supporting our US Power, Natural Gas and FTR businesses. The successful candidate will play a key role in advancing the firm’s risk analytics framework, enhancing portfolio risk transparency and developing innovative modelling solutions across complex physical and financial commodity markets.

The position offers the opportunity to influence investment decisions, improve risk infrastructure and contribute to the continued growth of a sophisticated global commodities platform.

Key Responsibilities

• Develop, enhance and maintain sophisticated quantitative models used to price, value and analyse physical and derivative commodity products across US Power, Natural Gas and Financial Transmission Rights (FTRs).
• Design and implement robust methodologies for constructing forward curves, volatility surfaces, correlation structures and other market inputs used across pricing and risk management frameworks.
• Partner closely with Portfolio Managers and Risk Managers to provide quantitative insight into portfolio construction, position sizing, hedging strategies and relative value opportunities across complex commodities portfolios.
• Build and enhance risk analytics covering market risk, scenario analysis, sensitivities, P&L attribution, factor decomposition and portfolio exposure reporting.
• Develop comprehensive historical and hypothetical stress testing methodologies, assessing portfolio performance under extreme market conditions and identifying key sources of portfolio vulnerability.
• Apply advanced statistical and quantitative techniques to evaluate market liquidity, transaction costs, liquidation risk and broader portfolio risk characteristics.
• Support the implementation, calibration and ongoing enhancement of enterprise risk systems, ensuring accurate representation of complex commodity products and trading strategies.
• Conduct detailed quantitative analysis on new trading strategies, products and portfolios, working alongside investment teams throughout the onboarding and implementation process.
• Contribute to the development of the firm’s broader commodities risk framework, identifying new analytical techniques and improving existing risk methodologies.
• Produce insightful analysis for senior management and Risk Committees, clearly communicating key market developments, portfolio risks and emerging investment themes.
• Collaborate with Technology teams to automate research workflows, improve data quality and integrate analytical models into the firm’s production risk infrastructure.
• Drive continuous improvement of reporting capabilities through the development of scalable, automated tools that increase efficiency and provide deeper portfolio transparency.
• Provide ad hoc quantitative analysis supporting investment teams across both commodities and broader multi‑asset portfolios where required.

Required Experience

• 10+ years of experience within quantitative research, quantitative risk, commodities strategy or commodities analytics at a leading hedge fund, investment bank, commodity trading house or physical energy company.
• Deep expertise across US Financial Transmission Rights (FTRs), Natural Gas and Power markets, with extensive experience supporting FTR trading businesses.
• Strong understanding of physical commodity markets and the quantitative modelling of energy assets, structured transactions and derivative products.
• Experience developing pricing models for physical assets including gas storage, oil storage, power tolling agreements, transmission assets and other structured commodity transactions.
• Broad knowledge across multiple commodity sectors including electricity, natural gas, crude oil, refined products, agricultural commodities, shipping and energy infrastructure.
• Strong understanding of seasonality, curve dynamics, basis risk and volatility modelling within commodity markets.
• Advanced knowledge of statistical modelling, portfolio risk analytics, optimisation techniques and quantitative research methodologies.
• Excellent programming skills in Python and SQL, with extensive experience using scientific computing libraries including NumPy, Pandas and related analytical frameworks.
• Strong academic credentials with a Master’s or PhD in Mathematics, Physics, Engineering, Statistics, Computer Science, Economics, Finance or another highly quantitative discipline.
• Exceptional analytical, problem‑solving and communication skills with the ability to explain complex quantitative concepts to both technical and investment stakeholders.