For 2009, Insulate Your Portfolio By Sham Gad About this article: With the demise of hedge funds, the word "hedge" has taken on a whole new meaning that's not all that pleasant. But most hedge funds blew up not because they made wrong bets but because they levered up recklessly. They failed to learn anything from the experience of Long Term Capital Management: Excessive leverage can render the most brilliant and correct trades worthless. The smartest guy in the room can be made to look dumb by using leverage. While expectations are that the back half of 2009 will look brighter for equities, this market has taught us not to bank on expectations. No one is going to disagree that things can get a bit worse before getting better. Unfortunately, many portfolios are already decimated, but a degree of protection or additional liquidity is always welcome. As we enter a new year, consider the following hedging methods.... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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