The general theory of the isotropic-ferromagnetic transition of dipolar hard sphere fluids is considered on the base of the formalism of the direct correlation function. The equation of the Lovett-Mou-Buff-Gubbins type, described the one-particle orientational distribution, is generalized on a case of long-range interparticle potential and ellipsoidal sample shape. The exact criterion of the isotropic-ferromagnetic transition is found as a result of bifurcation analysis. It is shown that the formalism reduces to all known approximations in partial cases. A new expression for the susceptibility is obtained analytically within the framework of the generalized mean-spherical approximation. It is demonstrated that the susceptibility diverges at appropriate values of short-range correlations. In this way, the decisive role of short-range correlations outside the core in the transition appearance is established whereas the long-range correlations are found to be of secondary importance. The qualitative estimations show that the short-range pair correlations in dipolar fluids are most likely antiferromagnetic in character so as the transition to ferromagnetic liquid becomes questionable. (C) 2003 American Institute of Physics.