Subject: File No. S7-25-06
From: Gordon H Davis, Jr.

January 29, 2007

Apparently, there is a new proposal pending that would limit access to hedge funds to investors with at least $2.5M in liquid assets. This limitation is supposed to protect the uninformed investor from the potential risks of such investments. I am against any regulation of such access because it runs contrary to the basic principles of our society. People are able to put resources at risk in any number of ways that have nothing to do with hedge fund investing. The government doesn't tell us we can't spend our money, or gamble, or give it away for that matter. There are no regulations about what kind of small business a person can start or how much of his/her personal fortune can be invested in that business. I am a retired small business person. We started our business by pooling all our resources including savings and investments. We even pledged our homes to the bank to get a loan. No government agency attempted to stop us even though the odds against our success were well over 90%. Why are we restricting access to a particular type of investment? The answer is clear and it isn't about protecting investors, it's about limiting competition.