Subject: File No. S7-25-06
From: James R Sweeney

January 26, 2007

I agree 100 per cent with the proposed rule changes.

I believe that net worth is a poor evaluation benchmark, however, due to the lack of a better system I feel that it is the best we have available and $2.5 million in investment assets is a good level.

I am happy to see the proposed legislation now rather than later as this legislation (if inacted) could save many inexperienced and trusting investors many millions of dollars.

I believe the average investor that now qualifies at the lower end of the current requirements is not an informed investor and invests with hedge funds solely because of the media hype or because it is what their investment advisor wants them to do (most likely at a significant commission to the advisor).

I believe that Hedge Funds have become so complex that they are an accident waiting to happen. Just ask investors who were invested in the commodity hedge funds betting on oil this past summer/fall.

If the SEC/Congress does not begin to rein in hedge fund operations my chance of being effected by hedge funds is increasing with each passing week as a large blowout is going to require a government bailout to help avert an implosion of the U. S., if not, the world economy (remember the banking crisis?) Then again it would be business as usual; the little fish get fried, the U. S. economy and it citizens suffer and the rich with all their political contacts swoop in to pick up assets at pennies on the dollar.