Baker Street Capital Management, Xyratex and PGC

The following letter came to my attention. It was written by Mr Vadim Perelman, the managing member of Baker Street Capital Management to the board of Xyratex, a company active in the disk drive industry. The letter was distributed over the main distribution services and picked up by Reuters, Bloomberg, etc.

Disclaimer: I have no opinion on Xyratex, I never heard of the company until I saw the letter and cannot judge the validity of Mr Perelman's comments as it applies to that situation.

Regular readers will know that Baker Street Capital Management together with George Kerr, the managing director of Pyne Gould Corp (PGC) controls the AEP (Australia Equity Partners), which again controls Pyne Gould Corp (77% of the share count). I copy the majority of the sections that Mr Vadim Perelman highlighted in his letter to the board and CEO of Xyratex.