Subject: File No. S7-30-04
From: Damir Durkovic
Affiliation: Operations Manager

September 15, 2004

I oppose the initiative to extend SEC jurisdiction to direct oversight of hedge fund managers. Although the SEC has suggested that the growing pool of capital allocated to hedge funds poses risks to the financial system, these risks are already closely monitored and controlled through regulations and internal policies of the prime brokers and other financial institutions that trade with, and extend credit to, hedge funds, as well as the regulators that directly oversee these institutions.
I believe that it would be more productive for the SEC to focus its efforts on the oversight of mutual funds, which affect the savings of a much broader segment of our society than the privileged few who are wealthy enough to invest with hedge funds.