• Apart from having a substantial amount of cash in a portfolio, hedging isn’t easy as these instruments lose value in a positive market.
• Buying some protection in times when trouble can be expected is one way around that, but hardly fool-proof as timing might be off.
• However, we consider here a useful hedging instrument that shorts shares of companies with suspect earnings quality and/or aggressive accounting.

Source: Hedge The Market With HDGE ETF – AdvisorShares Ranger Equity Bear ETF (NYSEARCA:HDGE) | Seeking Alpha