Subject: File No. S7-25-06
From: Timothy Silvers
Affiliation: Independent Analyst,

January 28, 2007

Dear Sirs:
I disagree with the proposed increase to $2,500,000 minimum liquid net worth in order to invest in private funds. Many smaller investors do not have access to investment vehicles that are negatively correlated with stocks and bonds. Hedge funds could offer protection to the average investor who was generally unprotected in the last stock market downturn. I understand that you need to protect the public from risky investments, but the small investor currently has access to futures, options, etc, which are argueably more risky than private funds.
I believe that hearings should be held to find a way to make private funds more accessible to the average "non-rich" investor. High net worth individuals have access to many more investment options to protect and to multiply their assets. Smaller investors do not have those options and would greatly benefit if there existed a class of "hedge" mutual funds that were regulated to mitigate unnecessary risk. Thank you for your time and consideration of my comments.

Timothy Silvers