From: Ronald A. Karp
Sent: February 15, 2007
Subject: File No. S7-25-06

I believe the proposed change to the $2.5 million of investments requirement is a bad idea. I believe this because it is based on an erroneous perception of hedge funds as "riskier" than other investments. This is the mass media stereotype of hedge funds, but is simply not true. To prove this, just do an analysis of the experience of investors from the top of the market in 2000 to the bottom in 2002. From top to bottom, an investor in the S&P 500 lost 45% and an investor in NASDAQ lost over 75%. The average hedge fund investor made money. Which is more risky?


Ron Karp

Ronald A. Karp
Summit Private Investments, Inc.