Subject: File No. S7-25-06
From: Kenneth A Gruber, Ph.D.
Affiliation: Professor of Biological Sciences; LTC, MS, USAR

February 12, 2007

I appreciate the SEC attempting to act "in loco parentis" for me (my parents are deceased for many years). However, the SEC is establishing a precedent which will be difficult to prevent being carried out to an unforseen conclusion. Why stop with hedge funds? How about penny stocks? I am offered them by email on a daily basis. Does any sophisticated investor (or the SEC) believe that penny stocks are a safer investment than hedge funds? I submit it is easier to lose one's shirt on penny stock investments than in hedge funds. Logically, investors who need protection from hedge funds deserve protection from penny stock investments as well.

And so it goes. Where will it end? Remember, the Government's WIC program for providing nutrition and health care counseling to low income women. It began as an after thought by Congress in the 1960's, with funding of a few million dollars per year. Its now a multi-billion dollar per year program. Irregardless of whether the WIC program is nice to have, no one (budgetarily) planned on this. The SEC needs to be careful of what it asks for, it just might get it