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Wealth preservation isn't really the point of most hedge funds. Bond index funds that invest in only the highest rated sovereign and corporate debt are cheaper ways to preserve wealth which outperform stock index funds when they're tanking and underperform them when they're doing well. Hedge funds serve other purposes.

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But if you're heavily invested in bonds then you can't "liquidate your assets at any time" like the commenter above you said. It sounds like you're talking about different investing goals, not really refuting their claim.

What are you talking about? Bond index fund holdings are extremely liquid. And even if you directly hold individual bonds in your own account, investment grade bonds from large issuers are also very liquid. The vast majority of wealthy hedge fund investors still don't have investments large enough that liquidity becomes a serious concern for bond trading.

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