Exiting the Narrative Matrix: AI, Storytelling, and Markets with Ben Hunt

FEG Insight Bridge

Which pill would you take, red or blue? Today's guest shares insight into what it may mean to exit the narrative matrix of today.
In this episode of the FEG Insight Bridge, Greg Dowling welcomes Ben Hunt, the creator and CIO of Epsilon Theory and Co-founder of Second Foundation Partners as he explains the narratives in markets and intertwines game theory and artificial intelligence (AI) concepts.
We explore Ben’s transition from the world of academia to a successful foray in the investment business, all driven by his profound enthusiasm for game theory. Ben describes his journey of unravelling the enigma behind one of the world’s most prominent games, investing. His insight includes comprehending the significance of narratives and identifying underlying patterns to forecast better investment outcomes.
Epsilon Theory is Second Foundation’s principal publishing brand and a widely read newsletter and website offering unique insights into market dynamics through the lenses of game theory and history. Epsilon Theory's audience spans across 180 countries consisting of over 100,000 professional investors and allocators. Ben’s diverse background includes teaching political science, authoring academic books, founding technology companies, and working in venture capital and hedge funds before joining Salient, where he applied his expertise in portfolio management and game theory to enhance client outcomes. He holds a Ph.D. in Government from Harvard University and is a Vanderbilt University graduate.
Key Takeaways

• We are wired to respond in predictable patterns to the stories we are told.
• Our media system has changed significantly to an always-on, 24/7 information provision.
• Smartphones today allow for a continuous intake of messaging in our lives.
• Society acknowledges and accepts this higher-than-ever level of information receptiveness. It drives and impacts our world today.
• To be an informed investor (or informed citizens), it isn’t what you read, but how. Maintain critical distance from the information, and ask yourself questions including “why am I reading this now?”

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Chapters

1. Introduction (00:00:00)

2. Episode Introduction (00:00:34)

3. Ben Hunt joins Greg (00:01:02)

4. Ben's Hedge Fund Journey (00:03:35)

5. The Role of Narratives in Investment Management (00:06:32)

6. Patterns in Narratives and Scripts (00:10:12)

7. Are Narratives Intentional? (00:13:35)

8. Three Structural Changes in Messaging (00:15:12)

9. Technology and AI's Impact on Narratives (00:21:41)

10. How to Read to Stay Informed? (00:26:01)

11. The Stories of Wall Street and Language of Investors (00:29:03)

12. Epsilon Theory Explained (00:31:51)

13. Lightning Round (00:34:32)

14. Closing Remarks with Ben (00:38:09)