Hindsight Capital LLC had a great 2008. It has always been successful because it uses the strategy that year in and year out is better than any other: hindsight.

But this year, Hindsight Capital operated with a few restrictions. It had to stay diversified so it could not just choose a risky stock that would rise 1,000 per cent. There were also strict limitations on its ability to use market timing. It had to stick with its positions at the start of the year from beginning to end, with one opportunity to shift, at mid-year.