Subject: File No. S7-25-06
From: Erik E Reuter, Ph.D.

January 27, 2007

I am strongly opposed to increasing the net worth requirement for accredited investors. In fact, I believe that the opposite action should be taken -- private investments, including hedge funds, should be available to all investors, not restricted to the privileged Americans who already have plenty of wealth for retirement. I think the best way forward would be to set up a regulatory environment to provide sufficient disclosure of risks and fees, and allow private investment firms which voluntarily comply with these regulations to be able to accept investments from all Americans equally. My mind boggles that in America we are discriminating against 90 - 99% of Americans, restricting their freedoms on the basis of their net worth.