Hedge fund performance suffered over most of the bull market, burdened by poor decisions, a bad reputation and the rise of passive investing. Hope, however, may be on the way. A factor often overlooked in how hedge funds have managed during the market and economic recovery is that interest rates have been at historic lows. The Federal Reserve dropped the rate it sets for banks to borrow from each other to near zero amid the financial crisis, and left it there for seven years. Even now, the U.S. central bank has...