Ben Hunt

Ben Hunt

Co-Founder and CIO

 @EpsilonTheory

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:

The Third Horseman

By Ben Hunt | July 27, 2021 | 0 Comments

Will the politically-motivated slamming of Chinese ADRs pass? Sure. But that’s small comfort if you’re getting crushed in the meantime. Here’s what I’m looking at to see if this gets worse (ie, systemic) before it gets better.

ET Podcast #12 – Proof of Plant

By Ben Hunt | July 16, 2021 | 0 Comments

I think this is how crypto can change the world. Not as “money” and not as Bitcoin! TM and not as a security and not as this speculative coin versus that speculative coin. Not by facilitating a market of goods, but by facilitating a market of GOOD.

The Narrative Machine v3.0

By Ben Hunt | July 6, 2021 | 0 Comments

Today we’re releasing the first research findings from the Narrative Machine 3.0, a process for measuring the patterns of individual linguistic components of narrative archetypes that comprise narrative structure – what we call narrative DNA. Yes, we think we’ve unlocked the genetic code of market-driving narratives.

The Political Autotuning of Inflation

By Ben Hunt | July 2, 2021 | 3 Comments

The politicization of inflation into a partisan “There Is No Inflation!” TM Narrative by the nudgers and mandarins on the left is really depressing. The…

I’m So Tired of the Transitory Inflation “Debate”

By Ben Hunt | July 1, 2021 | 16 Comments

When a famous person shakes his or her finger at you, they’re not telling you a fact.

They’re telling you how to think about a fact.

Proof of Plant: A New Vision for Crypto, Pt 1

By Ben Hunt | June 23, 2021 | 39 Comments

I want to change the language of crypto from mining to growing. I do not mean this in a metaphorical sense. I mean a proof-of-plant method for literally growing cryptocurrency tokens as a representation of the value stored in the human cultivation of plants.

ET Podcast #11 – A Working Narrative

By Ben Hunt | June 16, 2021 | 1 Comment

We write a LOT about work. And the responses we get are … weird.

Once again, the most important narratives are the ones we tell ourselves.

“Yay, Stock Buybacks!”

By Ben Hunt | June 15, 2021 | 5 Comments

I saw this work of art on Twitter today, referring to Dropbox management using stock buybacks to sterilize their outrageous stock-based comp, and it made…

The Fed Won the Narrative Battle in May

By Ben Hunt | June 11, 2021 | 0 Comments

Have I changed my views about the reality of inflation? Nope.

But will that impact market world? Not until it shows up in the narrative, and I have no idea when that will be.

“Yay, Environment!”

By Ben Hunt | June 10, 2021 | 15 Comments

In Epsilon Theory-speak, we use “Yay, Good-Thing!” as shorthand for a Narrative that takes a linguistic construction that we all agree is a Good Thing…