WASHINGTON - Lawmakers appeared skeptical of the need to bring hedge fund products to retail investors as Securities and Exchange Commission Chairman William Donaldson presented the agency's findings from its hedge fund roundtable.

In his first address to the House Financial Services Capital Markets Subcommittee, Donaldson also hinted at the need for hedge fund regulation, telling lawmakers that the industry is too big for regulators not to know more about it. The industry in the U.S. is estimated to have between 6,000 and 7,000 hedge funds with $650 billion in assets under management, Donaldson said. "We need to know more about what's going on inside some of these funds," he said.

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