Subject: File No. S7-25-06
From: David A Beamer

January 30, 2007

I agree with the proposal that hedge funds be allowed to accept investors that are not "accredited investors" (by today's standards). My argument is perhaps a bit too simple: more investors (not more money) involved in the hedge fund business (as investors) would have the probable effect of increasing the hedge fund industry's transparency. Hedge funds would advertise for a share of the average investor's wealth. Over time, either thru regulation or the marketplace, hedge funds would find themselves disclosing more and more information to all investors. This would allow both the very rich and the average Joe to better understand just what they were investing in.