Subject: File No. S7-25-06
From: Marguerite Gerstell

February 1, 2007

I am one of those who would be denied permission to invest in a hedge fund if the minimum net worth were raised. Although I have never invested in a hedge fund, I believe that persons who are allowed to invest in such risky assets as stocks, options, and houses should also be allowed to invest in hedge funds, at the discretion of the investor and of the hedge fund manager. Conventional mutual funds, which are peddled to small investors all the time, seem to underperform the general market, so there is no rationale for excluding small investors from hedge fund participation.