The proposed rule is, from my perspective, merely an effort to disenfranchise the INDIVIDUAL INVESTOR from the fruits and influence of modern finance.
Modern Portfolio Theory posits that hedge funds and private equity investments can provide substantial benefits to a diversified portfolio. Specifically, an allocation of capital to each of these asset classes (along with stocks, bonds, etc) helps REDUCE overall portfolio volatility and INCREASE the overall return of the portfolio. The SEC is hindering an investor’s ability to achieve the benefits noted above.
Craig A. Matson
Many of the country’s wealthiest institutional and private investors were caught as investors in the Long Term Capital Management and Amaranth debacles. If there is a relationship between high net worth and strong financial acumen, how is it demonstrated in these instances? Many of the world’s finest money managers run hedge funds. Thus, the SEC’s desire to increase net worth requirements will ensure that only the wealthiest investors have access to the best investment minds.
Hans Jorg Stahlschmidt
Our society is already stacked unfairly in favor of the rich and wealthy. We have enough nanny government now. The SEC should be investigating the criminal
element and leave the investing qualifications to others.