Subject: File No. S7-25-06
From: Arnold G Peterson, MD
Affiliation: Orthopedic Surgeon

February 25, 2007

I would urge you not to increase the liquid net worth requirement allowing one to invest in hedge funds to the proposed 2.5 million. If you must increase it, which I am not sure that you do, increase it to what it would have risen to with inflation. This amount is 1.9 million. MOre money was lost in the stock market by individual investors during the past 10 years and you protect them. What good did it do. Don't lock some of us out that have worked hard to accrue a small net worth. Force all the very wealthy to invest only in mutual funds and see how that flies.