One investor's decision to exit a business does not a trend make. However, when the investor is prominent and in the glam and lucrative world of hedge funds, and the decision isn't due to his retirement, then the investor's decision may involve more than meets the eye -- and if not a trend then maybe the beginning of a trend.
News available here observes that sophisticated investors increasingly are questioning whether hedge funds, on average and over time, justify the investment capital they receive. Investors are spending more time reviewing and questioning fees paid to the funds' managers.
"Hedge funds are a great business ... ... for hedge fund managers." (I don't remember the source of the quote but believe it to be Burton Malkiel.)
Narratives will emerge stating that the average hedge fund's fading bloom is due to Dodd-Frank regulation which indirectly reduces investment returns. Because those narratives will often have an agenda behind them, here's a suggestion: be politely skeptical about that causation explanation.