In this Bloomberg article they highlight the fact that many funds have closed this year on track to be the second worst year for closures after 2009. Also the broad hedge fund index has struggled with a +2% for the year to date.
What I can say is this has been a very tough market with zero interest rates making the challenges tougher. However, I once again must emphasize that focusing on the short term is a guaranteed way to mis-allocate funds. We need to accept that in the equity bull market we are currently in, every reasoned investor looks like a loser.
I think Hedge Funds are probably the best investment right now and you should be increasing your allocations not cutting them.