EFTA01981188

To: Paul S Barre From: Jeffrey Epstein Sent Wed 10/13/2010 1:41:08 PM Subject Re: Update and ideas ok to both On Wed, Oct 13, 2010 at 3:38 PM, Paul S Barrett Morning Jeffrey A few things: wrote: - macro trading environment remains tough with all the central bank intervention and quant casing programs distorting the markets -I think the opportunities will in specific themes or single name ideas 41 - Buy AMR Converts 6.25% 2014 (Spot = $6.42; Conversion Px = $9.90) - we should buy 2MM of this JPM analyst raised Dec-II price target to $13.50 from $12.50 a few weeks ago, implying 115% upside. This compares to average coverage upside of 45% (8 names covered). Historically, buying airlines in September-October and holding until April or May yielded positive returns 90% of the time. AMR is highly leveraged yet the analyst believes deleveraging and balance sheet repair will be main industry themes over next year #2 - buy ARS denominated Argentine GDP Warrants (these are warrants issued by the government with the payout linked to nominal GDP growth) - Px target ARS22.09 ($5.59); current ARS 12.64 ($3.20) - would do $10MM notional which costs $320,000 Will call you shortly to discuss EFTA_R1_00469664 EFTA01981188 Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosures/email. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. EFTA_R1_00469665 EFTA01981189