Last year was an exceptionally unusual one for the markets, but hedge funds finally hit their stride after years of underperformance. They demonstrated that they could protect capital during steep downturns and handle unusual occurrences in the markets. Larger funds, in particular, did well in 2020, and investors rewarded them for it. SAN FRANCISCO, CALIFORNIA - OCTOBER 02: Bridgewater Associates Founder & Co-Chairman/Co-CIO Ray ... [+] Dalio speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 02, 2019 in San Francisco, California.