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:

Bear Stearns and the Narratives of Systemic Risk

By Ben Hunt | April 23, 2020 | 15 Comments

The systemic risk question you need to ask yourself today is the same question you needed to ask in 2008.

What is the micro-level truth of the potential real-world shock, and does that micro-level truth threaten the Common Knowledge surrounding a levered business model and securitized asset class of enormous size?

The Bear Stearns Bounce

By Ben Hunt | April 23, 2020 | 2 Comments

In 2008, the market came roaring back after Bear Stearns was sold for parts to Jamie Dimon. Why? Because Narrative. Because with Bear’s elimination, “systemic risk was off the table.”

That’s the question you need to ask yourself today. Is systemic risk off the table?

Through No Fault of Their Own

By Ben Hunt | April 20, 2020 | 17 Comments

I, for one, am delighted to learn of the “Through No Fault of Their Own” exemption to stock market risk.

One day, and soon, there will be a reckoning. Time to choose a side.

Inception

By Ben Hunt | April 14, 2020 | 15 Comments

We’re going to change the world, you know … you and me. We’re going to create points of failure for the system of sociopathic oligarchy AT SCALE.

Our Finest Hour

By Ben Hunt | April 2, 2020 | 15 Comments

There is no country in the world that mobilizes for war more effectively than the United States. And I know you won’t believe me, but I tell you it is true:

This will be #OurFinestHour.

But Barry Sternlicht Says …

By Ben Hunt | April 1, 2020 | 0 Comments

I honestly have no idea what the world is going to look like in six months! I’m sure I’m not alone. And if you honestly have no idea what the world is going to look like in six months, are you going to live up to your commercial obligations (like a lease) over the next six months as if the world is still spinning as always on its axis?

Once in a Lifetime

By Ben Hunt | March 29, 2020 | 39 Comments

We are led by high-functioning sociopaths, in our politics and our economy, and nowhere is this more apparent than in our war against COVID-19.

How do we protect ourselves? Not by allying with the sociopaths, but by finding our pack.

Getting PPE to Healthcare Workers and First Responders

By Ben Hunt | March 23, 2020 | 3 Comments

This is our personal effort to help identify *need*, *sources*, and *money* for personal protective equipment distributions to healthcare workers and first responders.

Do The Right Thing

By Ben Hunt | March 19, 2020 | 29 Comments

Bailout the airlines and their rank-and-file employees? You bet.

Bailout the CEOs? Not a chance.

But that’s what we’re gonna do.

The Python and the Pig

By Ben Hunt | March 13, 2020 | 2 Comments

The NYC healthcare system – one of the finest in the world – is about to be slammed beyond anything they have ever seen. ER visits and patient testing is where it begins. It moves from there through the system, ending in ICU wards. The process is like a python swallowing a pig, except this isn’t a pig. It’s a whale.