Subject: File No. S7-17-11
From: Frank Smith

June 2, 2011

In these tough economic times adding more regulation that would hurt the small hedge funds and hedge fund service providers is a bad idea.

This will put many of the small hedge funds out of business as upping the requirement from $1.5M to $2.0M will shrink the pool of investors they can recruit from.

Since advertising and soliciting is not allowed and since they can only sign up investors they have a relationship with and already know, the pool of investors for small hedge funds is very small.

Guaranteed this will put me and many other small hedge funds out of business.

Please don't hurt us and the U.S. economony by making it harder to do business with this rule change.

Please let the investors choose if they want to invest or not and not arbitrarily exclude them just because they only have $1.5M instead of $2.0M.

Please allow me to keep my business alive and don't effectively shut me down with this rule change. I beg you don't do this.

Please do not make this rule change. Please keep the rule as it is and do not incurease the limite from $1.5M to $2.0M.