To: Jeffrey Epsteinfleeyacation©gmail.com]
From: Paul S Barrett
Sent: Wed 10/13/2010 1:38:59 PM
Subject: Update and ideas

Morning Jeffrey

A few things:

- macro trading environment remains tough with all the central bank intervention and quant easing programs distorting the markets

- I think the opportunities will in specific themes or single name ideas

#1 - Buy AMR Converts 6.25%2014 (Spot = $6.42; Conversion N = $9.90)

- we should buy 2MM of this

JPM analyst raised Dec-11 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 GOP growth)

- N target ARS22.09 ($5.59); current ARS12.64 ($3.20)

- would do $10MM notional which costs $320,000

Will call you shortly to discuss

Paul

Paul Barrett, CFA

Managing Director

Global Investment Opportunities Group

JPMorgan Private Bank

40W 57th Street, 33rd Floor, New York, NY 10019