The move is a smart play by the hedge fund industry to organize and strategize about how to deal with the growing scuttlebutt concerning the lack of regulation over the alternative investment industry. Concerns over insider trading, investment exposure and risk, and operational resiliency continue to draw attention to the historically reclusive and opaque segment of the securities industry, and the influence of hedge funds and other alternative investments on the capital markets put them right in the crosshairs of industry regulators.

If membership in the AICA continues to grow, it will give hedge funds as strong of a voice as they're likely to get in Washington, when the time comes, and might help soften the blow of any significant regulatory reform that comes down the pipe. And it's almost certain that lawmakers and regulators will be addressing the increasingly loud calls for controls on hedge funds as insider trading festers and major market players, such as Amaranth, collapse.

For more information on AICA membership, write to membership@aica-info.com.