Subject: File No. S7-25-06
From: James L Price
Affiliation: retired

January 26, 2007

I think your proposed qualifications for "accredited investor" are too steep. I have owned hedge funds for 15 years, and would not qualify under the proposed rule, (though I'd be close). I truly believe, because of the vast information available, that today's investor is far better informed than the investor of yesteryear. When I first invested in a hedge fund, it was very difficult to get information. I do agree with the concept of limiting hedge funds to somewhat more sophisticated investors. I would think that $1,000,000 in investment assets or $1,500,000 including home equity would be sufficient. Adjusting for inflation makes sense.