In the wake of the private rescue of Long Term Capital Management (LTCM), politicians are about to consider imposing federal regulations on hedge funds. The House Banking Committee will launch hearings today.

Experts predict that future attempts to bring about greater governmental oversight of the funds might become mired in the same politics and complications that have so far kept regulators away.

They also point out that no taxpayer money was involved in the $3.6 billion attempt to shore-up LTCM. The pledged came from a consortium of banks and securities firms both here and abroad.

• There are about 4,500 domestic and offshore hedge funds with nearly $300 billion in assets.

• Most of the funds are relatively small -- with 65 percent having assets of $50 million or less, and only 5 percent worth $500 million or more.

• Federal Reserve Chairman Alan Greenspan has rejected the need for greater hedge-fund regulation, saying they are "strongly regulated by those who lend the money" -- mainly banks and Wall Street firms, with some from ultra-wealthy individuals.

No precise legal definition exists as to what a "hedge fund" is and the term is not even used in federal securities law. Generally, however, in the U.S. they are private partnerships of wealthy, sophisticated investors who buy and sell stocks, bonds, commodities and more exotic derivative securities, using sophisticated strategies. Offshore hedge funds are usually mutual funds with headquarters in a tax-haven country, with some structured so they can accept American customers.

Experts report the funds are growing in popularity and their assets should continue to climb by at least 15 percent annually over the next five to 10 years. About 81 percent of the funds use borrowing to leverage their returns, according to the firm of Cerulli Associates.