From: David Perasso
Sent: January 27, 2007
Subject: File No. S7-25-06

I am a "small investor" because my net worth is less than $1,000,000. Yet I have 10 years of investment experience and probably understand more than many investors with more than $1,000,000 (or even the soon to be limit of $2,500,000). I am allowed to invest in foreign stocks, short sales, options of all types (including naked calls), commodity futures and all manner of partnerships.

Restricting the investment choice of investors based on a simple test of net worth is ridiculous and unfair.

There are several alternative ways to protect investors from overly risky hedge funds, including creating a class of hedge funds that are registered and regulated by the SEC.

I hope you will consider modifying the rules to allow any investor to participate in any investment choice.

thank you,

David Perasso
Seattle, WA