From: Mark Reisler
I would like to comment on the proposed rule to raise the limits on hedge fund investing.
I believe the current rule should not be changed, and in fact, should be altered to allow any investor to participate in hedge funds. Why should only the rich be allowed to diversify their portfolio, while we, who for the simply reason that we do not (yet) have a net worth above $1M, cannot? Even we smaller investors have many options today for our investments, so sophistication is not somehow limited to only those who are already rich - those of us active in our investments already have had to sort out many risk issues in our portfolio. Yet, we are denied the chance to better diversify our portfolios.
Ideally, it would be good to allow hedge funds the option to be set up similar to mutual funds whereby smaller investors could participate, but under similar regulations and requirements as mutual funds currently operate.