From: David Collins [funds@hotmail.com]
Sent: Monday, September 23, 2002 12:13 PM
To: rule-comments@sec.gov
Subject: File No. S7-28-02 (Re: Limited Partnerships, Hedge Funds)

To Whom It May Concern:
 
The proposed requirement that gives each hedge fund manager the option 
of instructing its Custodian to issue monthly statements to their 
investors will not work.
 
Custodians of hedge fund securities are typically broker-dealers and 
clearing firms who simply provide a single consolidated statement for 
the entire fund to the fund manager each month.
 
The proposed rule should provide each fund manager with the option of 
providing monthly statements to their investors via an Independent 
(Third Party) Fund Administrator.
 
Our firm provides this service to more than 100 hedge funds currently.  
We simply receive a copy of each fund's brokerage statement directly 
from the broker each month, and subsequently produce monthly statements 
for each investor according to GAAP and AIMR standards.
 
Adding Independent Fund Administrator to your proposed rule change will 
more accurately reflect the the entity responsible for the production 
of investor reports.
 
Sincerely yours,
 
David W. Collins
President