LUXEMBOURG (Reuters) – A wave of mergers and acquisitions could sweep the fund management industry this year as players come under pressure from the market turmoil, said speakers at the Reuters Funds Summit.

One leading hedge fund manager added that the consolidation could lead to the disappearance of half of the current hedge fund players.

"I would say that if half had to close, I wouldn’t be surprised," said Ken Kinsey-Quick, head of multi-manager products at London-based hedge fund Thames River Capital LLP.

"The consolidation is happening right now. By summer it will be done and dusted. Those that are going to be around, it will be pretty clear in June who those will be," he added.

Both hedge funds and more mainstream fund management companies have faced having to merge or be taken over due to the effects of the financial crisis, which has led to massive withdrawals of clients’ money.

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Arlington Heights Daily Herald – A missing hedge fund manager who owed investors a $50 million payout told his wife in a note he felt guilty about mismanaging people’s money, and threatened to kill himself, according to a sheriff’s report released Tuesday.

However, the Sarasota County Sheriff’s Office said it believes Arthur G. Nadel planned his disappearance and that it was ending its search for him.

The Federal Bureau of Investigation will continue to investigate complaints from investors who were expecting Nadel to deliver the $50 million redemption on Jan. 15, the day after he disappeared.

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