From: Oliver Brouse
Sent: February 7, 2007
Subject: File No. S7-25-06

Hello SEC,

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!

Best Regards,

Oliver Brouse