Subject: File No. S7-25-06
From: Hal Collier
Affiliation: Registered Investment Advisor; Investment Fund Consulting LLC

January 31, 2007

Your proposal would have a significant negative impact on the small entity I manage. Only 2 of my 12 investors would qualify under the proposed rules. I suppose that as my existing investors make withdrawals over a few years, my fund will get too small and I will have to close it.
I imagine my existing investors will be unhappy to find that the SEC has denied them the opportunity to invest additional amounts in our fund, since its cumulative net return since inception on 9/13/04 (to 12/31/06) has been 53.96% vs 32.01% for the SP 500. Or the fact that their individual accounts which I managed for years prior to 9/13/04 all achieved returns more than double the SP 500.

Isn't this America, "the land of the free"? And yet the government now controls what ordinary citizens can invest in. The proposed rule is simply a further erosion of our free choices in this country by bureaucrats who "know what is best for us".

Hal Collier