EFTA01774251

From: jeffrey epstein <jeevacation@gmail.com> Sent: Tuesday, September 27, 2011 6:26 PM To: Barrett, Paul S Subject: Re: Update Ok Sorry for all the typos .Sent=from my i Phone On Sep 27, 2011, at 8:23 PM, "Barrett, Paul 511= > > wrote: 1=ffrey I think we should take advantage of the recent rally to trim some position= that either have limited upside (like our Barclays Pfds and Citi Pfds) or a=e at risk for further downside if Europe does not ratify the expanded EFSF.= Rec=mmendation: - trim our CIT from 10MM to 5MM. Would s=ll 52.5MM of both the 2016 and the 2017 maturity. We are up on both positio=s - collar 1/2 our MS exposure for 1 month. This wo=Id entail buying a 14 put and selling a 17 call. Cost around 10c/share=io:p> - collar % out Telefonica position for 1 month. 13.501=5 collar. Cashless. I will call you to discuss.<=o:p> =/o:p> Paulco:p> =/o:p> Paul Barrett EFTA_R1_00087549 EFTA01774251 <=pan style="font-size:10.0pt;font-family:"Tahoman,"sans-ser=f"">From: Barrett, Paul S Sent: Wedne=day, September 21, 2011 3:52 PM To: 'Jeffrey Epstein' Subje=t: Update =nbsp; Hi Jeffrey We are still doing some more credit work before=we close the $5MM Harrah's note. Since the end of August the account is down around $2.7MM (was flat=at the end of Aug).This translates into - $6.98MM for 2010 and +$4.25MM YTD f=r 2011. =/o:p> This has been due to (ch=nges since End of August): SGD d=wn 5% ($500K) INR d=wn 5% ($500K We switched both of these forwards into options so we h=ve limited downside from here on out CADJPY down 150K [We are long the 83.25 CAD Call and Short=the 76.00 Put with a knock in at 71; spot at 76.50; knock in 7% away)=0:p> Oil call down 140K<=:p> Corn down 600K<=o:p> 2 EFTA_R1_00087550 EFTA01774252 ING Pfds down 200K =0:p> MS Note knocked in d=wn 140K Telefonica n=te down 300K [Stock is trading below 2009 lows; only 35% of their revenue c=mes from Spain; would HMI I wo=ld like to reduce further downside. I think the cheapest protection out there remains buying CDS on Asia. Fo= example Indonesia CDS costs 220bps. It got as wide as 1200bps in 2008. It f=els like Asian credit spreads remain one of the few things that have not mo=ed and could provide some cheaper tail risk if things deteriorate further.<=:p> Financial Pfds remain our largest=notional exposure (around $20MM). I think we should reduce some exposure he=e. Would involve selling some of .IPM, Barclays and Citigroup. BAC and WFC w=s downgraded today and would also trim those positions.</=> Paul B=rrett, This email is confidential and subject to important disclaimers and conditio=s including on offers for the purchase or sale of securities, accura and c=m leteness of information viruses confidentiality, legal privilege, and l= al entit disclaimers available a 3 EFTA_R1_00087551 EFTA01774253