I think ive read that depending on how you use it,the cloth simulation in udk tends to get heavy.If it was for the cape of a character i supose its ok but looking at some of the characters that cobalt uses(like the hair),i think this is a soft body or maybe a baked simulation as a ready animation in max/maya?
If you dont manage to pull of some decent cloth in udk i suspose the best option woud be a animated cloth in max or a shader that simulates wind with some paralax maybe?
Look at the begining of this video of star wars battlefront
Looking at the cloth that is covering the crates,the way it moves,i think this is a shader thing.