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SIGNATURE STEVEN J. PAGGIOLI
TITLE ASST. TREASURER
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<NAME> MATRIX/LMH VALUE FUND
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June 30, 1999
Mr.Steven J. Paggioli
Assistant Secretary and Assistant Treasurer
Matrix/LMH Value Fund, Inc.
915 Broadway
Suite 1605
New York, NY 10010
Dear Mr. Paggioli
This is to confirm that the client-auditor relationship between
Matrix/LMH Value Fund, Inc. (Commission File Number 811-
3758) and PricewaterhouseCoopers LLP has ceased.
Very truly yours,
PricewaterhouseCoopers LLP
cc: Chief Accountant
SECPS Letter File, Mail Stop 11-3
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
The Board of Trustees
Matrix/LMH Value Fund
New York, New York
In planning and performing our audit of the financial statements of the
Matrix/LMH Value Fund, for the year ended June 30, 1999, we
considered their internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide assurance
on the internal control structure.
The management of the Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with
management's authorization and recorded properly to permit preparation
of financial statements in conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in
which the design or operation of the specific internal control structure
elements does not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal control
structure, including procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above, as of June 30,
1999.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission, and should not be used for
any other purpose.
TAIT,
WELLER & BAKER
Philadelphia, Pennsylvania
August 6, 1999
August 27, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Commissioners:
We have read the statements made by Matrix / LMH Value
Fund, Inc. (copy attached), which we understand will be
filed with the Commission, pursuant to Item 77K of Form
N-SAR, as part of the Company's Form N-SAR report
dated June 30, 1999. We agree with the statements
concerning our Firm in such Form N-SAR.
Very truly yours,
PricewaterhouseCoopers LLP
August 27, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
ATTENTION: Document Control - EDGAR
RE: Item 77K ("Change in Certifying
Accountant") on Form N-SAR for "Matrix/LMH
Value Fund" (EIN# 22-2457376; SEC File#
811-3758; CIK# 720498)
Gentlemen,
On June 28, 1999, Matrix/LMH Value
Fund dismissed Pricewater-houseCoopers LLP
as its independent accountants. The
Registrant's Board of Directors
participated in and approved the decision
to change independent accountants.
The reports of PricewaterhouseCoopers
LLP on the financial statements for the
two fiscal years ended June 30, 1998 and
the period ended June 28, 1999 contained
no adverse opinion or dis-claimer of
opinion and were not qualified or modified
as to uncer-tainty, audit scope or
accounting principle.
In connection with its audits for the
two most recent fiscal years, there have
been no disagreements with
PricewaterhouseCoopers LLP on any matter
of accounting principles or practices,
financial statement disclosure, or
auditing scope or procedure, which dis-
agreements if not resolved to the
satisfaction of Pricewaterhouse-Coopers
LLP would have caused them to make
reference thereto in their report on the
financial statements for such years.
During the two fiscal years ended
June 30, 1998 and the per-iod ended June
28, 1999, there have been no reportable
events (as defined in Regulation S-K Item
304(a)(1) (v)).
The Registrant has requested that
PricewaterhouseCoopers LLP furnish it with
a letter addressed to the SEC stating
whether or not it agrees with the above
statements. A copy of such letter, dated
August 27, 1999, is filed as an Exhibit to
this Form N-SAR.
Your truly,
Kevin Page
Assistant Treasurer
Matrix/LMH Value Fund
