Hi,
I have exported a character with smart hair to UE4 via Auto Setup. During game play, the hair looks fine for the first second or so then the textures for the different parts of the hair appear to vanish and reveal the underlying gray mesh.  

BTW, This post was moved from iClone to Character Creator.  However, if it matters, the export was done from iClone, and the hair was applied via Iclone. Character Creator was only involved in creating the character. The hair was applied later in iClone.

I am having this problem a lot.
My guess is it has to do with the lighting.
Especially if UE iray is active, it becomes more of a problem.
I hope they provide more convenience regarding this for CC4 + iC8.

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Maybe the lighting, but the workaround I have found is simply to use a different colored / solid-square shader as a material. Because smart hair incorporates different layers, I use a slightly different color for each smart-hair layer. This retains much of the multi-colored functionality while getting rid of the sudden evaporation. 

Since I started exporting all textures as 4K, the problem has stopped. Hope it's a permanent solution.