I'd say yes, but you lose the cloak in the process and you have to have a hiding place within 1 foot per rank in Hide, and they get a Spot check against your Hide result-10. In other words, exactly as if you used a successful Bluff to distract them. You detach the cloak, swirl it into the air so it blocks their vision, and then duck around the corner/into the bushes/whatever. The cloak falls to the ground, you're no longer behind it. If they make their Spot check they saw where you went.