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

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