Hedge fund strategies in general have had a very ordinary last five years (Fund of Funds Index +1.8% per annum). If we look at returns since the post GFC low for markets of February 2009, then comparing the Hedge Fund Fund of Funds Index to the S&P 500:
Fund of Funds Index +3.5% per annum
S&P500 +15.75 per annum
This performance discrepancy has resulted in two major trends - firstly, lots of pressure on fees. The old "2% base fee and 20% of profits" model is broken. Very few investors are prepared to pay this now, and those that do are absolutely guilty of not working in their investors best interests. The second, and related effect has been a significant rotation out of hedge fund investments and into more beta like strategies. Even the heroes and early adopters of the "large hedge fund allocation" model - (the Ivy League university endowments, the large US public sector pension funds) have reduced their hedge fund allocations over recent years.
The graph below shows hedge fund flows in July 2016. Notably the Equity Long/Short strategy has seen significant outflows, an interesting data point when compared to the common wisdom that today is a "stock pickers" market.