Subject: File No. S7-17-11
From: Hyonmyong Cho
Affiliation: Portfolio Manager, Greenlaw International LP

June 8, 2011

Raising these limits will make it difficult for smaller hedge funds to stay in business. Unlike the larger hedge funds, where management fee is sufficient not only to stay in business but also to become wealthy, smaller hedge funds need to have superb investment performance and customer service to stay in business and make money for both their limited partners and their managers. If you remove smaller hedge funds from the market, the only recourse for smaller investors will be mutual funds which seem like a cynical vehicle to make large asset management companies money (returns no better than market but with much higher fees than index funds). It seems the world and the government is increasingly favoring the large and the powerful. It would be helpful to keep the playing field level so that the smaller folks can provide some competition for their larger peers and good service for smaller investors.

Best regards,