Subject: File No. S7-25-06 From: Steven J Guillaudeu  January
27, 2007  Although I am a beginning, small investor mainly
focused on stocks and mutual funds, I feel the proposed changes
to the rule regarding a minimum net worth for access to hedge
funds are unacceptable. Some day, I hope to have the level of
sophistication to understand hedge funds and use them to further
my net worth, but I do not feel that my net worth will determine
that level of sophistication. It seems, in principle, that
restricting access to hedge funds based on net worth is wholly
unfair to most Americans. Net worth does not determine if
someone is intellectually prepared to analyze the risks
associated with dangerous sports, alcohol consumption, or even
driving a car. Plenty of rich people have lost their fortunes
through unsophisticated money management. If there is a
requirement for investor sophistication to enable investing in
hedge funds, it should be based on a test, much like driving a
car. As it stands, risky investments are a