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As contrarians, The Turnaround Letter’s approach is simple: We avoid the “blue chips” and “hot” stocks that most investors are clamoring to buy—instead seeking out companies that have had some problems, and are temporarily out-of-favor, but are in the process of turning around. These stocks seem like laggards when we first identify them, but as the turnaround becomes more evident, Wall Street will jump into the stock and push the price up—often dramatically.

“Turnaround Mutual Funds: Few in Number, but Good Returns” focuses on mutual funds that emphasize turnaround situations—analyzing each funds’ performance and returns to maximize our readers' profit potential.

This headline could easily apply to Goldman Sachs today, as recently described by former employee Greg Smith. Actually, it is the title of a book written in 1940 by a former Wall Street employee named Fred Schwed, Jr. The title refers to a story about person admiring the yachts owned by bankers and brokers who asks where the customers' yachts were. Of course, the customers, who had dutifully followed the advice of the bankers and brokers, couldn’t afford yachts. This just goes to show that there is nothing new about the attitude that Goldman Sachs employees were purported (probably accurately) to have about their clients. It was just as true in 1940--and likely has been forever--as it is now.