UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 13F

Form 13F COVER PAGE

Report for the Calendar Year or Quarter Ended:	December 31, 2008
Check here [ ] if Amendment; Amendment Number
This Amendment (Check only one.):	[ ] is a restatement.
					[ ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:			Telluride Asset Management LLC
Address:		1000 Parkers Lake Road
			Wayzata, MN 55391

Form 13F File Number: 28-11432

The institutional investment manager filing this report and the
 person by whom it is signed hereby represent that the person
signing the report is authorized to submit it, that all information
contained herein is true, correct and complete, and that it is
 understood that all required items, statements, schedules,
lists, and tables, are considered integral parts of this form.

Person Signing this Report on Behalf of Reporting Manager:

Name:		Mark Kuper
Title:		Authorized Agent
Phone:		952-653-6446

Signature, Place, and Date of Signing:

	Mark Kuper	Wayzata, MN  January 13, 2008
	[Signature]	[City, State]	 [Date]

[X]	13F HOLDINGS REPORT.  (Check here if all holdings
 of this reporting manager are reported in this report.)

[ ]	13F NOTICE. (Check here if no holdings reported are in
this report, and all holdings are reported by other reporting
manager(s).)

[ ]	13F COMBINATION REPORT. (Check here if a portion
of the holdings for this reporting manager are reported in this
report and a portion are reported by other reporting manager(s).)




FORM 13F SUMMARY PAGE

Report Summary:

Number of Other Included Managers:	0

Form 13F Information Table Entry Total	75

Form 13F Information Table Value Total	27912
					(thousands)

List of Other Included Managers:	NONE






1		2	3		4	5		6	7	8
					VALUE	SHRS OR	SH/PUT/	INV	OTHER	VOTING
NAME OF ISSUER	CLASS	CUSIP		(x$1000)PRN AMT	PRN CALLDESC	MGRS	S SH N
Neub Berm Hi Y 	COM	64128C106	68	SHRS	10700	SOLE	NONE	X
ALPHA NAT RESO	COM	02076X102	162	SHRS	10024	SOLE	NONE	X
AMERN STRATEGI	COM	030099105	739	SHRS	87442	SOLE	NONE	X
ANNALY CAP MGMT	C	035710409	1049	SHRS	66100	SOLE	NONE	X
ANTHRACITE CAP 	COM	037023108	66	SHRS	29793	SOLE	NONE	X
APEX SILVER MIN	COM	G04074103	19	SHRS	19000	SOLE	NONE	X
ARCH COAL INC	COM	039380100	184	SHRS	11285	SOLE	NONE	X
BHP BILLITON 	COM	088606108	257	SHRS	6000	SOLE	NONE	X
BLACKROCK REAL 	COM	09254B109	132	SHRS	18760	SOLE	NONE	X
CALAMOS STRATE	COM	128125101	63	SHRS	10000	SOLE	NONE	X
CANTERBURY PARK	COM	13811E101	313	SHRS	52900	SOLE	NONE	X
CITIGROUP INC	COM	172967101	88	SHRS	13055	SOLE	NONE	X
CLOUGH GLOBAL 	COM	18914E106	486	SHRS	53683	SOLE	NONE	X
CME GROUP INC	COM	12572Q105	553	SHRS	2655	SOLE	NONE	X
COEUR D ALENE 	COM	192108108	141	SHRS	159764	SOLE	NONE	X
COHEN & STEERS	COM	19247W102	62	SHRS	16400	SOLE	NONE	X
COHEN STEERS RE	COM	19247X100	75	SHRS	12104	SOLE	NONE	X
CONSOL ENERGY	COM	20854P109	218	SHRS	7621	SOLE	NONE	X
CONTINENTAL 	P	210795308	289	SHRS	16000	SOLE	NONE	X
CONTINENTAL 	C	210795308	217	SHRS	12000	SOLE	NONE	X
CREDIT SUISSE	COM	225401108	212	SHRS	7500	SOLE	NONE	X
CUR SHAR EURO 	COM	23130C108	783	SHRS	5600	SOLE	NONE	X
DENDREON CORP	P	24823Q107	6244	SHRS	1363400	SOLE	NONE	X
DENDREON CORP	C	24823Q107	812	SHRS	177300	SOLE	NONE	X
DEVON ENERGY	C	25179M103	256	SHRS	3900	SOLE	NONE	X
DREYFUS HI YIE 	COM	26200S101	92	SHRS	41457	SOLE	NONE	X
DRYSHIPS INC	COM	Y2109Q101	123	SHRS	11560	SOLE	NONE	X
EAGLE BULK SHIP	COM	Y2187A101	245	SHRS	35900	SOLE	NONE	X
ENDEAVOUR SILVE	COM	29258Y103	39	SHRS	38700	SOLE	NONE	X
EVERGREEN MULTI COM	30024Y104	169	SHRS	16600	SOLE	NONE	X
EXETER RES CORP	COM	301835104	33	SHRS	16900	SOLE	NONE	X
FIRST TR FOUR	COM	33733Q107	340	SHRS	50732	SOLE	NONE	X
FORD MTR CO DEL	P	345370860	88	SHRS	38500	SOLE	NONE	X
FRANK TEMP LTD 	COM	35472T101	150	SHRS	17792	SOLE	NONE	X
FRONTEER DEV GR	COM	35903Q106	37	SHRS	18800	SOLE	NONE	X
GABELLI HLTHCAR	COM	36246K103	242	SHRS	48217	SOLE	NONE	X
GENERAL MTRS 	P	370442105	216	SHRS	67400	SOLE	NONE	X
HASBRO INC	COM	418056107	312	SHRS	10690	SOLE	NONE	X
HERCULES OFFSHO	COM	427093109	132	SHRS	27755	SOLE	NONE	X
HORSEHEAD HLDG 	COM	440694305	69	SHRS	14696	SOLE	NONE	X
HOUSE OF TAYLOR	C	44176R106	0	SHRS	187500	SOLE	NONE	X
INFOSONICS CORP	C	456784107	10	SHRS	40500	SOLE	NONE	X
ING CLARION GLB	COM	44982G104	73	SHRS	18250	SOLE	NONE	X
ING RISK MAN 	COM	449810100	593	SHRS	44796	SOLE	NONE	X
ION GEOPHYSICAL	COM	462044108	39	SHRS	11241	SOLE	NONE	X
ISHARES TR	COM	464288588	234	SHRS	2232	SOLE	NONE	X
ISHARES TR	COM	464287739	484	SHRS	13000	SOLE	NONE	X
ISHARES TR	P	464287242	203	SHRS	2000	SOLE	NONE	X
ISHARES TR	P	464287739	558	SHRS	15000	SOLE	NONE	X
KAYNE ANDERSON 	COM	48660P104	228	SHRS	19824	SOLE	NONE	X
LUNDIN MINING 	COM	550372106	81	SHRS	84758	SOLE	NONE	X
MCDERMOTT INTL	COM	580037109	180	SHRS	18216	SOLE	NONE	X
MEDTRONIC INC	COM	585055106	277	SHRS	8818	SOLE	NONE	X
NATIONAL SEMICO	COM	637640103	135	SHRS	13396	SOLE	NONE	X
NORTHGATE MINER	COM	666416102	34	SHRS	40767	SOLE	NONE	X
NUVEEN MULTI 	COM	67073B106	296	SHRS	64404	SOLE	NONE	X
NUVEEN MULTI 	COM	67073D102	155	SHRS	31811	SOLE	NONE	X
OIL SVC HOLDRS 	COM	678002106	531	SHRS	7200	SOLE	NONE	X
OIL SVC HOLDRS 	C	678002106	1549	SHRS	21000	SOLE	NONE	X
PARKER DRILLING	COM	701081101	81	SHRS	27938	SOLE	NONE	X
PPG INDS INC	COM	693506107	225	SHRS	5297	SOLE	NONE	X
PROCTER & GAMBL COM	742718109	208	SHRS	3372	SOLE	NONE	X
PROSHARES TR	COM	74347R834	330	SHRS	5200	SOLE	NONE	X
RMR ASIA REAL 	COM	74964Q101	310	SHRS	47248	SOLE	NONE	X
SEL SECT SPDR TRCOM	81369Y506	205	SHRS	4300	SOLE	NONE	X
SELECT SECTOR 	C	81369Y506	908	SHRS	19000	SOLE	NONE	X
SMITH INTL INC	COM	832110100	469	SHRS	20475	SOLE	NONE	X
SUPERVALU INC	COM	868536103	228	SHRS	15628	SOLE	NONE	X
TIDEWATER INC	COM	886423102	367	SHRS	9111	SOLE	NONE	X
TRANSOCEAN INC	COM	G90073100	405	SHRS	8582	SOLE	NONE	X
TRICO MARINE	COM	896106200	70	SHRS	15700	SOLE	NONE	X
TYSON FOODS INC	COM	902494103	389	SHRS	44443	SOLE	NONE	X
U S OIL FUND LP	COM	91232N108	1543	SHRS	46600	SOLE	NONE	X
UROPLASTY INC	C	917277204	79	SHRS	83333	SOLE	NONE	X
W ASSET EMRG MK COM	95766A101	184	SHRS	14600	SOLE	NONE	X
W ASSET INFL MG	COM	95766U107	476	SHRS	32956	SOLE	NONE	X
Total   				27912