Subject: File No. S7-25-06
From: Marc D

January 28, 2007

I personally agree with John Mauldin on this matter and have quoted a defining statement he made below that I could not put into better words myself. Raising the bar to exclude even more investors from the opportunities that high net worth investors have had for years will just continue to magnify the intensity of the gap between the have and the have not's in the United States. Let's not forget the fact that within our Democracy all men are created equal and the basis for our success is a feverish free capitalism. Would it be fair to say that if these restrictions were to pass then at some point in the future the government could restrict a low net worth individual from starting his own business or investing in the shares of companies with a market cap below a specific amount. These restrictions are simply unfair and alienate the majority of the country from a tool that can be a beneficial portion to anyone's portfolio. In legislating I stress you to look at alternatives such as limiting the portion of a persons total net worth that can be invested into hedge funds. Say for instance that if you are worth less than $1 million you may invest no more than 10% or 15% of your total net worth. I really prefer and stress total freedom but I know that is probably not the most likely scenario and that is the only reason I offer the alternative. It is unfair for the government to make a specific set of tools off limits. Do you not consider the educated investor who may be young or just starting out. There could be investors whom have passed their CFA exams that would not have the capability to invest simply because they are young and have not been able to accumulate the proper wealth even though their knowledge is of the inherent opportunities and risks are above many professional investors. When you practically step back and look at what this change would do I think you can find very little fundamental basis for raising these limits without offering some access to these opportunities to the rest of the country. - Marc D.

"If you were to tell investors that they would be discriminated against because of their gender or race or sexual preference, there would be an outcry. To put it simply: it is a matter of Choice. It is a matter of Equal Access. It is a matter of Equal Opportunity. Congress should change the rules and allow all investors to be truly equal, at least as to opportunity." - John Mauldin