From: Michael Penn Smith
Sent: January 31, 2007
Subject: File No. S7-25-06

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 youíre 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 IíM ABLE TO INVEST IN NOW, inc. options, commodities, and currencies. The management fees tend to be higher, but thatís transparent enough, and partly due to the regulatory limitations.

Therefore I agree with John Mauldinís and Roel Camposí 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
Pennsmith HD
214 339 3237
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