January 27, 2007
I am astounded by the arrogance of the proposal to increase the net worth requirements of hedge fund investors. The assumption that net worth somehow correlates postively to the ability to make smart investing decisions is elitist and false. Do you really help investors by restricting the choices they can make? I believe it can be shown that the individuals who are precluded from hedge fund investing due to this rule would be inclined to seek out other investments with far more risk than the typical hedge fund. The vast majority of hedge funds are prudent and conservative and by closing the doors to them you drive investors to look for far more inappropriate investment vehicles. You aren't protecting people with this rule you are further endangering them.
James L. DePorre
RealMoney. Com
SharkInvesting.com
Shark Asset Management, Inc.