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 Donkey of Guizhou

By Ben Hunt | July 7, 2014 | 0 Comments

There were no donkeys in Guizhou until an eccentric took one there by boat; but finding no use for it he set it loose in…

The Dude Abides: China in the Golden Age of Central Bankers

By Ben Hunt | July 1, 2014 | 1 Comment

Today, however, the Chinese State faces two existential threats, each stemming from or accelerated by the Great Recession and Western policy responses to that crisis of market confidence.

First, QE and other “emergency” Western monetary policies of the past five years threaten the grand political unification of Deng Xiaoping from without. 

Second, massive wealth inequality and concentration driven largely by those same monetary policies threaten it from within.

Long Term Parking

By Ben Hunt | June 16, 2014 | 0 Comments

And I don’t want to hear about the freaking economy, either! Sil, break it down for ’em. What two businesses have traditionally been recession-proof since time immemorial?

Certain aspects of show business … and our thing.

Risk Analysis in the Golden Age of Central Bankers

By Ben Hunt | June 9, 2014 | 0 Comments

When I was a little kid we had a sand box. It was a quicksand box. I was an only child … eventually. – Steven…

The Minsky Moment Meme

By Ben Hunt | June 8, 2014 | 0 Comments

That’s not how it works. That’s not how any of this works. – Esurance “Beatrice” commercial There’s a wonderful commercial in heavy rotation on American television,…

When Does the Story Break?

By Ben Hunt | May 25, 2014 | 0 Comments

Margaret Bourke-White took this photo of the Garment District in 1930. Every single person on the street is wearing a hat. How did THAT behavior change over time? How did the Common Knowledge that All Men Wear Hats change?

Answer: the Common Knowledge Game.

Equity Volatility-of-Volatility Falls to All-Time Low

By Ben Hunt | May 12, 2014 | 0 Comments

1M implied volatility on the VIX fell to an all-time low last week. Generally speaking, this means that options on short-term market volatility increasing have…

All that Glitters

By Ben Hunt | May 9, 2014 | 0 Comments

I’ve received a lot of questions over the past few weeks about Russia and the Ukraine, and why I don’t include this flashpoint in my…

The Risk Trilogy

By Ben Hunt | May 4, 2014 | 0 Comments

A trilogy is a pretty abstract notion. You can apply it to almost any three things.  – Jonathan Demme Mozart: So then you like it?…

Core Curriculum

By Ben Hunt | April 28, 2014 | 0 Comments

I distributed this Epsilon Theory reading list last summer, but it never made it to the website. Given the volume of requests I receive for…