Subject: File No. S7-25-06
From: Joseph Sheehan

January 30, 2007

I believe that you should make Hedge Funds moderately regulated, in the style that Roel Campos has proposed.

I also agree that you should keep the investment threshold to a lower value.

There are too many intelligent investors with smaller portfolio's and too many idiot investors with huge portfolio's to simply let liquid net worth be the sole determiner of an investor's ability to fully understand the risk associated with an investment. Perhaps using a CAIA or CFA as the person who certifies an individual investor.

There has got to be a way to avoid making the playing field any more tilted towards the incredibly rich, and increasing the investor net worth threshold does just that.

Think carefully about your role in "protecting" the little investor - who are you really protecting here?