January 26, 2007
The proposed changes are built upon the presupposition that only the rich are intelligent enough to make such decisions for themselves. I am already sick of telling non-accredited investors, "Sorry, I am unable to produce the same return/allocation/protection/strategy for you as I provide for those who already have more money."
This is NOT equal opportunity. Only those who are in competition with the Hedge Funds will find any reason to support this regulatory change. Ordinary investors won't. Rich investors won't. Investment Advisors won't. Only those funds competing for these investment dollars would support such a regulation.
There is NO WAY a hedge fund is inherently more complex than a DPP, an LP, options, or even ordinary stock or bond selection. Let everyone have an equal opportunity in the market. If you feel inclined to place percentile restrictions upon how much of an investor's portfolio can be in one fund, then that makes sense... as long as you make that restriction across the board with every investment vehicle.