Subject: File No. S7-25-06
From: C.K. Baber, Jr.

January 29, 2007

As a retiree managing my wife's my retirement funds ($800,000+), I would be happy to see that hedge funds come under more strident rules. However, I would HESITATE to make such funds less available to the general public. Even though I more than qualify to invest in same (under current net worth requiremnets), I have elected NOT TO DO SO because I am more concerned about the following:
1. No annual audit or REGISTRATION is required by the SEC.
2. There is no independent quarterly audit required by the SEC.
3. The hedge funds are not required to have independent administrators.
4. The hedge funds have no rules governing advertising.

This does not, however, mean I am against hedge funds. They surely have their place in todays investment world, and I would DEFINATELY QUESTION THE WISDOM OF INCREASING THE NET WORTH REQUIREMNTS to invest in same. This definately limits the people who qualify rather than expanding the market.

I'm sure there are many folks with a net worth less than mine who would be, like me, willing to invest (and capabably so) were said funds regulated and registered with the SEC as are mutual funds and commodity funds.