NEW YORK - The hoopla about hedge funds stems from regulators' basic distrust of the industry managers, according to Paul N. Roth, a lead attorney with Schulte Roth & Zabel in New York.

"If you look at the figures between 1998 and 2005, you will see growth in the industry unlike anything before it," said Roth, the keynote speaker at the National Investment Company Service Association Hedge Fund Conference, held here last week. "That is, in my judgment, the major reason you have regulation," he said.

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