how's this for a letter, posted on RMpro
Jeff Matthews
A Draft Letter to My Investors
6/05/02 11:35 AM EDT
From: Jeffrey L. Matthews
To: Limited Partners of Ram Partners, L.P.
Date: June 5, 2002
This is to inform you of recent developments at Ram Partners, L.P., which should result in enhanced future performance and better returns on your investment.
We are selling several of our poor-performing investments at a substantial loss. This will allow us to focus on our core investments and better address the challenges of today’s difficult investment climate. Since these investment losses were covered by last year’s one-time, non-cash, non-recurring charge-off, they do not affect our reported pro-forma performance results, which continue to be excellent.
At the same time, we are taking another $10 million one-time, non-cash, non-recurring charge, representing anticipated losses on future lousy investments we might make.
This additional non-recurring charge will allow us to lower our cost structure, lower the bar, and clear the desks for enhanced growth in future quarters, without damaging the excellent track record we have developed.
By taking this one-time, non-cash, non-recurring charge, we clear the decks for a brighter future at Ram Partners. I remind you that immediately following last year’s one-time non-recurring charge Ram Partners experienced several quarters of excellent returns.
We would, of course, encourage you to consider this charge a non-event. While our unique “pro-forma” method of reporting and concomitant history of non-recurring charges have not been cleared by our accounting firm, I would point out that many large companies, IBM among them, do precisely the same thing.
Thank you for your support! |
