Another way to look at it is that they will have to make 233% on current equity to get back to high water mark.
Take the whole monthly history of the fund and compute their "average monthly return". Is that at least > 0%? Then divide that into 233 and determine the average number of months it will take you to get ahead again. If you can do better somewhere else, that is your answer.
On the plus side, you won't be paying an incentive fee for awhile. And I would hope the manager would at the very least waive their management fees at this point as a good faith gesture.
Ask the fund if they have de-levered or if they are still trading the money as if it were beginning-of-year-equity. If they haven't de-levered, the chance of that -70% turning into -100% is a lot higher. Right now the fund might be in "lottery ticket" mode, meaning that they have no income coming in unless they swing for the fences and make it all back fast. Or do they shutter the fund and simply open a new one so they can reset the high water mark to zero? Make sure they are not gambling with your money and/or don't care anymore, and instead intend to stick around for awhile and fight back.
Is this the manager's only fund, or do they have other products that are doing ok? Your other option outside of redeeming or standing pat is asking if you can be moved to another fund.
Going to a "fund of hedge funds" can be a possible solution to this single-manager, single-style risk too. Gets you exposure to the hedge fund sector, far lower minimum investment than doing it yourself, but higher fees since the FoF manager charges bps on top of the underlying managers. But if one manager blows up, that is only a few percent of your portfolio.
