Ben Hunt
Co-Founder and CIO
Ben Hunt is the creator of Epsilon Theory and inspiration behind Second Foundation Partners, which he co-founded with Rusty Guinn in June 2018.
Epsilon Theory, Second Foundation’s principal publishing brand, is a newsletter and website that examines markets through the lenses of game theory and history. Over 100,000 professional investors and allocators across 180 countries read Epsilon Theory for its fresh perspective and novel insights into market dynamics. As Chief Investment Officer, Ben bears primary responsibility for determining the Company’s investment views and positioning of model portfolios. He is also the primary author of materials distributed through Epsilon Theory.
Ben taught political science for 10 years: at New York University from 1991 until 1997 and (with tenure) at Southern Methodist University from 1997 until 2000. He also wrote two academic books: Getting to War (Univ. of Michigan Press, 1997) and Policy and Party Competition (Routledge, 1992), which he co-authored with Michael Laver. Ben is the founder of two technology companies and the co-founder of SmartEquip, Inc., a software company for the construction equipment industry that provides intelligent schematics and parts diagrams to facilitate e-commerce in spare parts.
He began his investment career in 2003, first in venture capital and subsequently on two long/short equity hedge funds. He worked at Iridian Asset Management from 2006 until 2011 and TIG Advisors from 2012 until 2013. He joined Rusty at Salient in 2013, where he combined his background as a portfolio manager, risk manager, and entrepreneur with academic experience in game theory and econometrics to work with Salient’s own portfolio managers and its financial advisor clients to improve client outcomes.
Ben is a graduate of Vanderbilt University (1986) and earned his Ph.D. in Government from Harvard University in 1991. He lives in the wilds of Redding, CT on Little River Farm, where he personifies the dilettante farmer that has been a stock comedic character since Cicero's day. Luckily his wife, Jennifer, and four daughters, Harper, Hannah, Haven and Halle, are always there to save the day. Ben's hobbies include comic books, Alabama football, beekeeping, and humoring Rusty in trivia "competitions".
Articles by Ben:
Our directional equity narrative signals have switched from bullish to bearish, and our equity trend narrative signals now point to a 0% allocation to directional trend-following strategies, their lowest possible state.
The rest, as they say, is commentary.
There is an uncontained spark in the financial world today, a spark that emerged from the unlikeliest of places, a federal courthouse in Florida.
It’s a spark with the potential to light a searing bonfire under Robinhood and Citadel.
#BITFD
Labor inefficiencies are so bad for FedEx that their return on invested capital (and FedEx has a LOT of capex) is, like, maayyybe greater than their weighted average cost of capital during the most insanely cheap financing period in the history of man. I mean, FedEx margins are SO BAD that this was actually a detailed point of conversation.
This is insane.
Is Evergrande a systemic risk? Is this China’s Lehman moment?
I don’t know. Could be. But unless and until the market loses confidence in China’s response to Evergrande, it’s not a Lehman moment. It can’t be.
Banks have a problem. Deposit growth is too high and loan growth is too low.
It’s all just another signal that real economic growth is struggling, even as inflation becomes more embedded.
From the ET Forum … Yesterday, the 20th anniversary of 9/11, I read and heard several mainstream references to “the Widening Gyre”. It makes sense…
In 1937, in the midst of a Great Depression, we started building a mighty bridge, not for a war effort, but for a popular movement based on wonder and progress.
We really did that.
Can we do it again?
The Green Protocol is a set of rules for the tokenization of symbolic betting markets in positive social good.
I think this is how crypto saves the world.
Our first step on this new path? Let’s plant one billion new trees in North America over the next ten years.
For the past several months our Narrative Monitors have been quite bullish on risk assets, despite all of the Fed-related and Delta-related and China-related and inflation-related concerns that have been on my personal radar screen. Rusty’s, too. The fact is, though, the Monitors have been spot-on and I’ve been dead wrong, which is … well, it’s exactly why we’re so excited about this research program!
From the ET Forum … An Australian Pack member living abroad published what I think is an outstanding review of the depths to which Australia’s…