From: Jay D. Crom
Sent: January 26, 2007
To: rule-comments@sec.gov
Subject: File No. S7-25-06


Please do not increase the limits on hedge fund investor eligibility. Also please consider allowing something along the lines of Mr. Mauldin’s suggestion:
The Hedge Fund Investment Company

Let me suggest the following: the creation of a new type of investment company vehicle. Simply modifying the current mutual fund rules might work, but it is not direct enough, in my opinion. Let's call this new vehicle a Hedge Fund Investment Company or HFIC. Let me describe it first and then outline some of the advantages.

A hedge fund would be allowed to register with the SEC (or CFTC if there is a commodity focus) as an HFIC. They would be required to have an annual independent audit, at least quarterly independent valuations of their assets, and independent administrators, plus they would be subject to SEC or CFTC advertising rules. Nearly all of the rules which apply to mutual funds should apply to an HFIC. There would be few, if any, limits on the strategy the fund could employ, and they could charge a management fee and an incentive fee. They would have to fully disclose not only the relevant risks, but also their strategies, fees, personnel, and management experience.

As with mutual funds, there would be no limits on the number of investors. They would be allowed to advertise within current regulatory guidelines. With certain restrictions outlined later, they would be able to take non-accredited, or average, investors.

Please allow Choice & Equal Access. Congress should change the rules and allow all investors to be truly equal as to opportunity.

Change our system where 95% of Americans are relegated to second-class status based solely on their income and wealth and not on their abilities. It is simply wrong to deny a person equal opportunity and access to what many feel are the best managers in the world, based upon old rules designed for a different time and different purpose. I hope that someday Congress will see to it that small investors are invited to sit at the table as equals with the rich.

Thanks you,

Jay D. Crom, CPA, CIRA, CFE
BACHECKI, CROM & CO., LLP
180 Montgomery Street, Suite 2340
San Francisco, CA 94104