From: Richard Smith
Sent: January 26, 2007
Subject: File No. S7-25-06

Dear Sirs,

You will certainly receive many comments on the proposed rule change, so I will keep mine brief: I oppose it.

I see no rationale for the SEC raising the net worth threshold for investing in hedge funds. Indeed, I see no rationale for maintaining in force the current $1 million threshold. Investing in hedge funds is no more inherently risky than investing in Enron common stock, trading FX, or playing Lotto. An investor of any level of wealth can go broke just as easily through one method as through the others.

But even that is not the point. The point is that in America, we (should) have the freedom to take risks; it's part and parcel of the right to the pursuit of happiness. I resent the SEC stepping in and attempting to restrict that right based on my -- or any man's -- net worth, and for that reason I oppose the rule change.

Kind regards,

Richard Smith