1.   With portfolio insurance the objective of the institutional investor or fund manager is to maintain the value of a portfolio.

2.   The problem with the stock market crash was that index arbitrage and portfolio insurance had the effect of feeding off each other and driving down share prices.

3.   As the name implies, portfolio insurance was designed to protect portfolios, sheltering them from severe declines in value.

4.   In the aftermath of the crash, portfolio insurance got a very bad name.

5.   Managers no longer rely upon portfolio insurance.

6.   One way, called dynamic hedging, bears a suspicious resemblance to the portfolio insurance of old.

7.   The most important selling, however, came from money managers who had bought into a brand of hooey known as portfolio insurance.

8.   With portfolio insurance, investors tried to protect themselves from a falling market by selling futures instead of stocks.