EFTA01452549.pdf

From: Tazia Smith Sent: 2/18/2014 12:49:55 PM To: [email protected] CC: Paul Morris Subject: Fw: percentages get a read from your team IC) Attachments: pic11362.gif; pic01914.gif; pic03756.gif; pic10772.gif; old/5526.81f; pic26576.gif; pic02321.gif; pic06893.gif; pic03118.gif Classification: confidential Jeffrey- would love to run through details of implementation. could you give me a call when you have a moment? Or if you're back in NY I can run up and go through it in person. Market rally last week (and Japan overnight, +3%) makes for a less opportune entry points on some of your asset classes. Healthcare's on a tear; you may have seen, Actavis, which is in the Healthcare basket we're looking to buy, is up —8% after announcing a bid for Forrest Labs. Tech and Energy look attractive for entry. Ex: XLK currently $36.15, XLK 7an15 36 risk reversal, collect 40.40 net premium and create a synthetic long for $35.60 (giving up dividends, of course) Have details of tech and energy baskets we can review (single names and options) Best, Tazia (Embedded image moved to file: pic11362.gif) Forwarded by Tazia Smith/db/dbcom on 02/14/2014 12:09 PM From: Tazia smith/db/dbcom To: Jeffrey Epstein <[email protected], Cc: Paul Morris Date: 02/14/2014 10:45 AM subject: Re: Fwd: percentages get a read from your team [c] Classification: Confidential understood Jeffrey. Implementation: Today/Mon (and Tuesday in us due to holiday Mon) start with 1/4 positions (within that 50mm allocation) across the direct equities (healthcare, energy, financials, tech, Japan, Europe) Topix TRS - add S3.5mm usd notional via swap and indirect hedge = gives you capital efficient leverage (financing 3mL+70bps, -20% initial collateral). OR CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0 109650 CONFIDENTIAL SDNY_GM_00255834 EFTA01452549