Article: Hedge Funds Headed for M&As: Institutional Investors Looking for Large, Established Firms.

The hedge fund industry will consolidate through mergers and acquisitions, as the funds continue to proliferate and gain popularity among institutional investors, experts predict.

"This is absolutely going to happen," said Joel Press, a managing director with the prime brokerage division of Morgan Stanley, speaking to an audience at The National Investment Company Service Association's "Alternative Investments Conference" in New York last month.

"While it hasn't started yet, it is the logical next step for the industry," concurred Ted Dougherty, a partner at Deloitte Tax, a Deloitte & Touche subsidiary.

Hedge funds are not required to register ...

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