From: Maco Stewart
I am writing to express concern with the SEC's proposed new rule that would further deny the middle class the ability to invest in hedge funds. The current system, under which only investors with a net worth of more than $1 million may invest in hedge funds, is unjust. So-called "small investors," even those of us with great financial sophistication, are unable to diversify into hedge funds simply because we have not accumulated large amounts of wealth. Most of us were not born rich, and many choose careers that do not pay a great deal of money. Some of us are young and have not had the time to accumulate millions of dollars yet, although we might eventually. None of those factors make us unsophisticated.
The current rule blatantly discriminates against those of us who are not wealthy. The wealthy already have enough of an edge; there is no reason to put the rest of us at a further disadvantage. The new proposal, to raise the wealth requirement to $2.5 million, would make a bad situation far worse.
Please consider the millions of us who understand what we invest in but are not rich. Discriminating against us is not right and is not in the public interest.