From: Kenneth J. Hendrickson
Sent: January 27, 2007
Subject: File No. S7-25-06

Please do not raise the net worth required for investing in private offerings such as hedge funds. Instead, lower them to zero.

The principle you should be following is this:

Prevent and/or Punish Fraud
Prevent and/or Punish Coercion

Do NOT try to protect people from themselves. Some people are less intelligent. Some people make bad choices. But if you attempt to protect them from themselves, you will hurt other people in the process. An example concerns the law which currently exists preventing me, intelligent as I am, informed as I am, experienced as I am, from investing in private offerings such as hedge funds. Stop hurting me, just because I am young (44) and only have a net worth of $500k, built up over only the last 9 years. Stop preventing me from making any investment choice I want.

Thank you,

Kenneth J. Hendrickson