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From: Michael Penn Smith
I consider myself a reasonably sophisticated investor, and networth wise am just lately reaching the point where I might be considered an accredited investor, by the current rules. I understand you’re considering a proposal to dramatically raise the threshold, so that only 1% or so of investors would be accredited level, and therefore able to invest in Hedge Funds. I understand that Hedge Funds are more risky than some investments, but they ARE NOT MORE RISKY THAN MANY THINGS I’M ABLE TO INVEST IN NOW, inc. options, commodities, and currencies. The management fees tend to be higher, but that’s transparent enough, and partly due to the regulatory limitations. Therefore I agree with John Mauldin’s and Roel Campos’ proposals, that with appropriate safeguards similar to requirements that apply to other investment classes, Hedge Funds should be available to average investors.
Michael Penn Smith
"Where there is much light, the shadow is deep" -- Goethe "Turn your face to the sun and the shadows fall behind you" -- Maori Proverb "You can't have a light without a dark to stick it in." -- Arlo Guthrie |