From: James G. Gibson
Ladies and Gentlemen,
I request that you reconsider and withdraw the proposal to increase net worth requirements from $1 million to $2.5 million related to the eligibility of investors to place money with so called "hedge funds". I will posit three reasons for your consideration.
1) The presumption that only those individuals who have a net worth above some arbitrary threshold are capable of judging the appropriateness of investing in "hedge funds" is simply incorrect. I would challenge you to produce objective and scientifically valid studies that state otherwise.
2) Any informed observer of the investment scene will know that there are multitudes of investment opportunities which are every bit as complex with significant risk levels currently available to ordinary investors without the imposition of net worth requirements. This fact demonstrates the inconsistency between the existing and proposed net worth requirements related to "hedge fund" investments and other equally complex/risky investment opportunities..
3) In terms of equity and fairness it is simply unjust to limit the investments available for "ordinary" investors. The imposition of dual classes of investor citizenship with the largely arbitrary net worth rule is simply illogical and unfair. The inferred desire to protect certain investors from themselves is a form of "Big Brother" thinking that I hope can be reduced or eliminated.
Thank you for your consideration of my comments,
James G Gibson