And I was dead wrong.

4. Russell quit trading in for a while, saying the system didn’t work any longer because things had changed

The Pacific Turtle Fund (my major trading Fund) was closed down by agreement by the directors. The reason behind that was as follows:

1. The Fund had high administration fees
2. Government Tax policies changed so that investors in Cayman Island Funds lost their anonymity
3. The largest investor in the Fund accounted for over 80% of the investments.
4. That investor decided they needed the money back
5. To maintain a smaller Funds Under management size on the fee structure with not much
chance of new funds would have meant a drag on the returns of the existing Investors
6. Richard Dennis had closed down his fund (more on this later)
7. Because of point 7 I did think that something had gone wrong, and I did say that, and I did quit.

And I was dead wrong. Hey, first of all, everybody is entitled to an opinion, no matter how silly it may be, and second of all, everybody is human, and makes mistakes. I said what I thought at the time, wound up making a big mistake, and I have seen the light and since changed my mind. I was influenced by the opinions of others, including that of my original teacher, during a time when trend following was going through a long and extended drawdown period. I was tired, and burned out, and lost my tenacity. I should have known better, but I guess I didn’t realize it at the time.

A year later, I saw how wrong I had been, and in fact, wrote a very lengthy report (free to any of you
for the asking) in the beginning of 2003 explaining all of this. I have always had a reputation of being very outspoken about things.

Not everyone likes me for this, but I always say what’s on my mind, and don’t pull any punches. I said what I believed at the time. And if and when I’m wrong, which sometimes does happen, even to me, I admit it, and correct myself.