Book Excerpt: The inside [Turtle] story has not been told to a wider audience until now because Richard Dennis is not a household name today, and because so much has happened on Wall Street since 1983. After the experiment ended, the characters, both teachers and Turtles, went their separate ways and an important human experiment fell through the cracks, even though what took place is as significant today as then. The effort to get the real story out there started to gain momentum in 2004, when I was invited to visit Legg Mason's headquarters in Baltimore following the release of my first book, Trend Following. After lunch, I found myself in a classroom on the top floor with Bill Miller, the fund manager of the $18 billion Legg Mason Value Trust fund (LMVTX). Beating the Standard and Poor's 500-stock index for fifteen years straight put him in a similar league as Warren Buffett. Miller, like Dennis, had taken extraordinary calculated risks and more often than not been proven right. On this day he was lecturing a roomful of eager trainees. Out of the blue, Miller invited me to the lectern to address his class. The first questions, however, came straight from Miller and Michael Mauboussin (Legg Mason's chief investment strategist). They were, "Tell us about Richard Dennis and the Turtles." At that moment, I realized that if these two Wall Street pros wanted to know more about Dennis, his experiment, and the Turtles, it was clear a much larger audience would want to hear the story. However, as someone not there in 1983, I knew the task of telling a complete story from an objective vantage, with so many competing characters and competing agendas, was going to be a serious challenge. Getting those who lived the experience to talk, coupled with sleuth like research to corroborate everything, was the only way to make this story really come alive. That said, behind the scenes the soap opera of those Turtles who worked hard to prevent this book's [The Complete TurtleTrader] publication is a saga in itself.
The comparisons below show how under the radar the Turtle story has been until now...
| Comprehensive Biographical Detail | The Complete TurtleTrader by Michael Covel Collins, Oct. 07 |
Turtle Secrets by Russell Sands TradeWins, 94 |
The Way of the Turtle by Curtis Faith McGraw-Hill, Mar. 07 |
Market Wizards by Jack Schwager Prentice Hall, Jul. 89 |
New Market Wizards by Jack Schwager Harpercollins, Nov. 92 |
| Complete Turtle story, a narrative from 1974 to 2007. | YES | No | No | No | No |
| Based on first hand interviews with multiple Turtles. | YES | No | No | No | No |
| Includes biography of Turtle teacher Richard Dennis. | YES | No | No | YES | No |
| Includes biography of Turtle teacher William Eckhardt. | YES | No | No | No | YES |
| Includes biography of most successful Turtle Jerry Parker. | YES | No | No | No | No |
| Includes biographies of numerous other Turtles. | YES | No | No | No | YES |
| Includes by name over a dozen Turtle traders. | YES | No | No | No | No |
| Includes biography of second generation Turtle. | YES | No | No | No | No |
| Includes discussion of Turtle backgrounds before their hiring. | YES | No | No | No | No |
| Includes discussion of what Turtles are doing now. | YES | No | No | No | No |
| Detailed first person anecdotes by multiple Turtles before, during, and after Turtle program | YES | No | No | No | No |
| Turtle Rules | The Complete TurtleTrader by Michael Covel Collins, Oct. 07 |
Turtle Secrets by Russell Sands TradeWins, 94 |
The Way of the Turtle by Curtis Faith McGraw-Hill, Mar. 07 |
Market Wizards by Jack Schwager Prentice Hall, Jul. 89 |
New Market Wizards by Jack Schwager Harpercollins, Nov. 92 |
| Includes Turtle trading rules. | YES | YES | YES | No | No |
| Includes Turtle trading rules covered from multiple Turtle perspectives. | YES | No | No | No | No |
| Reveals story of major problem with Turtle rules uncovered in 1986. | YES | No | No | No | No |
| Turtles: Before and During the Turtle Program | The Complete TurtleTrader by Michael Covel Collins, Oct. 07 |
Turtle Secrets by Russell Sands TradeWins, 94 |
The Way of the Turtle by Curtis Faith McGraw-Hill, Mar. 07 |
Market Wizards by Jack Schwager Prentice Hall, Jul. 89 |
New Market Wizards by Jack Schwager Harpercollins, Nov. 92 |
| Includes accounts from multiple Turtles about their hiring. | YES | No | No | No | YES |
| Includes accounts from multiple Turtles about their day to day trading. | YES | No | No | No | No |
| Includes accounts from multiple Turtles about their two weeks of training. | YES | No | No | No | No |
| Extensive Research | The Complete TurtleTrader by Michael Covel Collins, Oct. 07 |
Turtle Secrets by Russell Sands TradeWins, 94 |
The Way of the Turtle by Curtis Faith McGraw-Hill, Mar. 07 |
Market Wizards by Jack Schwager Prentice Hall, Jul. 89 |
New Market Wizards by Jack Schwager Harpercollins, Nov. 92 |
| Includes Turtle performance data from 1984 to 2007. | YES | No | No | No | No |
| Includes comprehensive endnotes. | YES | No | No | No | No |
| Includes copy of original Turtle want ad. | YES | No | No | No | No |
| Includes discussion of the unknown third Turtle class in the 1990s. | YES | No | No | No | No |
| Turtle Controversies | The Complete TurtleTrader by Michael Covel Collins, Oct. 07 |
Turtle Secrets by Russell Sands TradeWins, 94 |
The Way of the Turtle by Curtis Faith McGraw-Hill, Mar. 07 |
Market Wizards by Jack Schwager Prentice Hall, Jul. 89 |
New Market Wizards by Jack Schwager Harpercollins, Nov. 92 |
| Includes discussion of myths and misconceptions surrounding the Turtle legend. | YES | No | No | No | No |
| Details allocation/performance controversies inside Turtle program. | YES | No | No | No | No |
| Details Turtle Russell Sands and Turtle Jerry Parker. | YES | No | No | No | No |
| Details Turtle Curtis Faith's issues before and after 1988. | YES | No | No | No | No |
| Details blow-up of Turtle Curtis Faith's Acceleration Capital (2003-2005). | YES | No | No | No | No |
| Includes by name one Turtle alone. | No | YES | YES | No | No |
"If you want to beat the market, you have to do something different from what everyone else is doing, and you have to be right. In this fascinating and instructive book, Michael Covel tells how a group of novice traders used a system that generated trades that were both different and right, and which made them a lot of money. If you want to understand the real world of trading, read this book."
Bill Miller, Chairman and Chief Investment Officer
Legg Mason Capital Management
"Regarding your new book [The Complete TurtleTrader], I can say that after hearing the turtle story many times from many of the people that are part of the story and after reading many articles about such story, this is by far the most entertaining, inspiring, extensive, and honest story of the turtles I have ever read.
Dr. Francisco J. Vaca
Vaca Capital Management LLC
Turtle Paul Rabar is a principal with Vaca Capital Management LLC
"Because Covel so clearly lays out these ingredients of success, his book is relevant not just to trend traders, but to anyone who aspires to greatness in the markets. The message is clear: to win, the odds must be in your favor, and you must have the fortitude to keep playing, remain consistent, and compound your edge. That's a formula for success in any field of endeavor, which may be why the Turtle story finds universal appeal."
Brett Steenbarger, Trading Author
"I did enjoy the book...I hope it's doing well for you."
Turtle #1
"The book was wonderful..."
Turtle #2
"Liked it. Congratulations on a job well done."
Turtle #3
"Book is very good...thank you for going for the truth and objectivity."
Turtle #4
"Nice book."
Turtle #5
"All in all, not bad. I wish it had never been done and I wish I were not in it, but I know that you were definitely going to do it, so I figured I would try to get the truth out as much as possible. By and large, it worked that way."
Turtle #6
"Most beat-the-market books aren't worth my shelf space. This one is."
Bloomberg Review
"...with [The Complete] TurtleTrader, we have something really quite different from SFO's usual review candidates. TurtleTrader is a story. It's a beach-chair page-turner loaded with interesting, even offbeat, characters and, a fair dose of drama. It's part Chicago historical account and sociology text... This journalist, never a trader but on the periphery of financial markets for more than a decade and a huge fan of the genre narrative nonfiction, could appreciate such a rare snapshot into dynamic market personalities and a look at what sets apart a chosen few from many of us. My copy is dog-eared from frenetic reading on the first go-around."
Stocks, Futures, Options Magazine
"Mr. Covel, my compliments. I found your work on the Turtles admirable in so many ways...As a 8 year commodities position trader, now retired pathologist, I kept asking myself how could you have observed, interviewed and then written a book that not just captured a complex technical story but at the same time said so much truth about trading and life. But somehow, there it was every time I turned the page. My son and I are carefully reviewing those pages to see what we can add or adapt to our trading approach. Along the way we are re-living our journey together. Thanks for having the talent and toughness to tell the tale so well.
Reader in Vermont
"For my staff at Hite Capital, Michael Covel's Trend Following is required reading."
Larry Hite
CEO, Hite Capital Management
"For investors willing to engage in some insightful discussion of their core investment philosophy, the book will challenge long-held beliefs. Perhaps the most controversial argument is that Wall Street's great effort of analysis and projections of the future are of little or no use to the serious investor. According to Covel, if the objective is to have a defined strategy to put capital to work for a profit, then investors are traders and the difference is more than a parsing of semantics...Investment books that have a lasting appeal offer insight that resonates with a large number of investors. We believe Michael Covel's Trend Following will be such a book. Importantly, Covel makes the case that investors are likely to benefit from having a portion of their portfolio invested in a non-traditional approach that adapts to whatever stock or asset class is exhibiting definable trends. While this 'trader' mentality may strike some as inappropriate, this approach is becoming modus operandi for some of the most sophisticated and successful long-term investors."
Richard E. Cripps, CFA
Legg Mason Chief Market Strategist
Michael Covel's book, Trend Following, is a great read. If you haven't already bought it and studied it, you should. It discusses the rationale for trend following, the tremendous long-term track records of many prominent trend followers, like Bill Dunn, John Henry, and Ed Seykota, and explains how those track records were generated."
Dorsey, Wright
"A mandatory reference for anyone serious about alternative investments."
Jon Sundt
President and CEO of Altegris
"Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor."
Christian Baha
CEO, Superfund
"Michael Covel's Trend Following: Essential."
Ed Seykota
"Michael Covel's book is the definitive guide to trend trading. Backed by real world results from some of the biggest and best money managers in the United States, his book will put you on the path to successful trend trading."
Larry Connors
"Covel has created a very rare thing - a well-documented and thoroughly researched book on trend following that is also well-written and easy to read. It touches on a wide variety of the principles and practices which make for successful trend following. This is one book that traders at all levels will find of real value."
John Mauldin
Millennium Wave Investments, Arlington, TX
"I think the book did a superb job of covering the philosophy and thinking behind trend following (basically why it works). You might call it the Market Wizards of Trend Following."
Van K. Tharp, Ph.D.
"Michael Covel's Trend Following is a breakthrough book that captures the essence of what really makes markets tick. Diligently researched and comprehensive in scope, it will replace Market Wizards as the must-read bible for a new generation of traders."
Jonathan Hoenig
Portfolio Manager, Capitalistpig Hedge Fund LLC
"...I can safely say that this book is a classic and a must-read for anybody involved with the markets -- even those of you who are just blindly plowing money into your retirement accounts...Covel takes no prisoners in showing why trend following is the superior trading methodology. He lays waste to all other styles of investing/trading -- 'buy & hold' (Warren Buffett fans will just love chapter nine...The book illustrates how that methodology [Trend Following] has allowed them to make huge profits from some of the greatest financial disasters of modern times such as the Enron debacle, the collapse of Long Term Capital Management, the 1997 Asian Contagion, the 1987 stock market crash, or the popping of the NASDAQ bubble."
Michael Seneadza
TraderMike.net
"This is an excellent book that I highly recommend...No, there are no secrets in it, but it's extremely well written and contains many nuggets of knowledge from a multitude of top traders. I enjoyed it more than the Market Wizard books. It earned a spot in my 10 all-time favorite trading books."
Dave Goodboy's EliteTrader Review
Purchase from Amazon The Only Complete Book on Richard Dennis and His Famous Turtle Trading Experiment!
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