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:

Taiwan is now Arrakis

By Ben Hunt | July 27, 2020 | 33 Comments

“He who controls the spice controls the universe.”
The world’s principal supplier of semiconductors – the spice of OUR global empire – is now Taiwan.
Thanks a lot, Intel. Thanks a lot, Bob Swan. Thanks a lot, Jack Welch. Thanks a lot, all you Wall Street wizards of financialization.
Taiwan is now Arrakis. And we WILL fight over it.

Is This The Real Life?

By Ben Hunt | July 22, 2020 | 1 Comment

The more I see these midday mysterious reversals in the growth/value relationship, the more I think that there is a Common Knowledge shift happening and not just a month-by-month shift in the Wall Street drum-beating for this sector or that sector.

A shift in Wall Street drum-beating is good for a trade. A shift in Common Knowledge, though … that’s a Big Deal.

Overserved

By Ben Hunt | July 20, 2020 | 14 Comments

Everyone is in a tizzy about day traders and Robinhood. “Ooooh, they’re going to have such a hangover when the bubble pops.”

Pffft. They’ll be fine.

The investors facing a hangover are small family offices, plied with endless offerings of fee-heavy SPVs and SPACs by multi-billion dollar asset managers.

The New Monitors Are Here!

By Ben Hunt | July 16, 2020 | 0 Comments

I don’t expect everyone to be as excited about the arrival of the new ET Professional Narrative Monitors as Steve Martin was about the arrival…

Snip!

By Ben Hunt | July 16, 2020 | 4 Comments

Both Trump and Biden have proposed $2 trillion spending plans for next year, confirming exactly what we wrote last December. To the dollar. To the word.

We can’t always write tomorrow’s headlines today. But we do try!

We the People? We the Pack.

By Ben Hunt | July 14, 2020 | 21 Comments

I still believe this will be our finest hour.

Not of the America that was. But of the America that can be.

As the creeper that girdles the tree trunk, the law runneth forward and back;

For the strength of the pack is the wolf, and the strength of the wolf is the pack.

The Anti-Anarchist Cookbook

By Ben Hunt | July 8, 2020 | 45 Comments

Defund the police? No.

Demilitarize and Deunionize? Yes.

Police reform is just the start.

Sideways: Observations on Pain and Privilege

By Ben Hunt | June 29, 2020 | 25 Comments

A sideways moment is when your life becomes a probabilistic exercise, where you are at the mercy of one of two merciless social institutions: hospitals or the police.

My life went sideways a week ago, and here’s what I learned about pain and privilege.

Another Brick in the Wall

By Ben Hunt | June 16, 2020 | Comments Off on Another Brick in the Wall

The Fed completes its transformation of the credit market into a political utility, the EU tops the US in economic growth prospects for the first time in living memory, and Americans are losing faith in “America”.

No Country for Old Men

By Ben Hunt | June 12, 2020 | 16 Comments

We all know someone who is in urgent-but-not-emergency need of some medical procedure that can’t be scheduled while Covid-19 is storming the hospital ramparts.

I’m one of them.