Cast on 68 stitches and divide them equally among four douple-point needles. Place marker. Knit in the round until the hat measures 5 inches.
Knit six, knit two together. Repeat around the row. Knit next round.
Knit five, knit two together across row. Knit next round.
Knit four, knit two together across row. Knit the next round.
Knit three, knit two together across the row. Knit the next round.
Knit two, knit tow together across the row. Knit the next row.
Knit two together across the row. Repeat this row once.
Cut yarn, leaving about 12 inches of yarn attached to the knitting. Thread the end of this yarn tail onto a darning needle. Thread the darning needle onto the remaining stitches on your knitting needle. Remove the stitches from the knitting needle and pull the yarn to gather the stitches. Take a couple of tacking stitches to secure the yarn and cut the end.
Attach yarn in a matching or contrasting color to the edge of your finished hat. With a circular needle, pick up 68 stitches around the edge of the hat.
Knit one stitch. Slip this stitch from the right needle back to the left needle. Cast on two stitches to the left needle. Bind off four stitches. This forms the picot.
Knit the next stitch. Transfer the knitted stitch from the right needle to the left needle. Cast on two stitches. Bind off four stitches. Repeat until you have worked all the way around the edge of your hat and bound off all but the last stitch.
Cut the yarn. Slip the free end of the yarn into the remaining stitch on your needle. Slip the stitch from the needle and pull the yarn to form a knot. Weave the excess yarn into the hat brim.