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 iPhone
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
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<=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>
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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
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