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It is not true that hedge funds are only available to accredited investors. Funds may have, generally, up to 35 non-accredited investors. However, many managers choose not to allow non-accredited investors into funds because they are likely to make smaller subscriptions and there is the possibility, under state laws, that the manager may not be able to charge such investors performance fees/allocations. Additionally, it is likely that there will be increased registration requirements under incoming SEC Chairman Mary Shapiro which may have a chilling effect on those managers who are starting a hedge fund in the new year.