On behalf of our family and relatives we would like to state that leveraged and inverse funds are very important part of our investment portfolio. In particular we use leveraged inverse funds as Hedge against long positions in hi-tech Nasdaq stocks. By prohibiting or overly regulating Leveraged Inverse funds, or creating other barriers, you as regulator will take away our ability to protect our portfolio and mitigate risk exposure effectively. Thus prohibit us form investing all together.
There should be distinction made between speculators and investors. Just because some speculators have lost money you should not punish average investors for using various hedging techniques such as option and leveraged funds. Current disclosure clearly states risk associated with leverage funds and options, additional regulation or tests will not prohibit risky speculative exposure in the markets by some individuals just as passing a driving test does not stop some individuals from risky driving and under the influence. Free public markets cannot be free if everyone is a winner or looser all the time.
Thank you.
Frank Patrone Comment On Regulatory Notice 22-08
On behalf of our family and relatives we would like to state that leveraged and inverse funds are very important part of our investment portfolio. In particular we use leveraged inverse funds as Hedge against long positions in hi-tech Nasdaq stocks. By prohibiting or overly regulating Leveraged Inverse funds, or creating other barriers, you as regulator will take away our ability to protect our portfolio and mitigate risk exposure effectively. Thus prohibit us form investing all together.
There should be distinction made between speculators and investors. Just because some speculators have lost money you should not punish average investors for using various hedging techniques such as option and leveraged funds. Current disclosure clearly states risk associated with leverage funds and options, additional regulation or tests will not prohibit risky speculative exposure in the markets by some individuals just as passing a driving test does not stop some individuals from risky driving and under the influence. Free public markets cannot be free if everyone is a winner or looser all the time.
Thank you.