From: Oliver Brouse
I am writing to communicate my objection to raising the liquid net worth requirement to $2.5MM to invest in hedge funds. My fundamental objection lies in the fact that I am a sophisticated investor who has passed the CPA exam, has an MBA from a private university, and am currently working to pass the Chartered Financial Analyst exam, yet I do not have $2.5MM of liquid assets and would not be able to invest in hedge funds if the guideline was raised.
As a CFA candidate, I am well aware that modern Finance theory teaches that a collection of uncorrelated assets, which individually are risky, can be combined in a portfolio which reduces portfolio risk while increasing expected returns. Just because I do not have $2.5MM of liquid net worth, should not preclude me from taking advantage of an important asset class (hedge funds), as I strive to actually accumulate $2.5MM of liquid net worth!
Please remember that you don't have to be rich to understand the risks and opportunities of hedge funds.
Thank you for the opportunity to comment!