While this article may seem rather elementary to some, we do however frequently hear advisors and even product representatives state incorrect qualifications. We decided that, since private offerings (managed futures and hedge fund products) would be periodically mentioned, our readers should be aware of just who qualifies for such a product.

If you are a natural person, you qualify as an "accredited investor" if you:

• have a net worth, individually or jointly with your spouse, in excess of $1,000,000 at the time of investment; or

• have had an individual income in excess of $200,000, or a joint income with your spouse in excess of $300,000, in each of the two most recent years, and you reasonably expect to earn the same level of income in the current year.

An organization or entity qualifies as an "accredited investor" if it is:

• a bank defined in Section 3(a)(2) of the Securities Act;

• a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act;

• a broker or dealer registered pursuant to Section 15 of the 1934 Act;

• an insurance company defined in Section 2(13) of the Securities Act;

• an investment company registered under the Investment Company Act;

• a business development company as defined in Section 2(a)(48) of the Investment Company Act;

• a small business investment company licensed by the Small Business Administration or (d) of the Small Business Investment Act of 1958, as amended;

• a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such a plan has total assets in excess of $5,000,000;

• an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), if the investment decision is made by a plan fiduciary (as defined in Section 3(21) of ERISA) which is a bank, savings and loan association, insurance company or registered investment adviser or an employee benefit plan that has total assets in excess of $5,000,000 or, if the plan is self-directed, with investment decisions made solely by persons which are accredited investors;

• a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;

• an organization described in Section 501(c)(3) of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), a corporation, a Massachusetts or similar business trust or a partnership, not formed for the specific purpose of acquiring Units, with total assets in excess of $5,000,000;

• a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring Units purchased is directed by a sophisticated person as described in Rule 502(b)(2)(ii) of Regulation D under the Securities Act; or

• an entity of which all of the equity owners are accredited investors.