Subject: File No. S7-30-04
From: Alexander Dzerneyko
Affiliation: Trader

September 15, 2004

I believe the SECs proposal to directly oversee hedge fund managers is misguided. Among other negative consequences, the burdens of this new rule will discourage talented investment managers from starting new hedge funds in the U.S. and will deter non-U.S. managers from offering their funds to U.S. investors. As a result, U.S. investors will lose access to potentially lucrative investments in exchange for a highly speculative set of regulatory benefits that they have not sought.


Alexander Dzerneyko