EFTA02348982.pdf

From: Stephen Hanson < Sent: Monday, October 26, 2015 11:09 PM To: Jeffrey E. Subject: Re: Proposed Portfolio Tks. Will u be in town Tuesday -=or after and have any free time Sent from my iPad On Oct 26, 2015, at 6:07 PM, jeffrey E. <jeevacation@gmail.com <mailto:jeevacation@=mail.com» wrote: Fo=warded message From: Barrett, P=ul S < Date: Mon, Oct 26, 2015 at 6=03 PM Subject: Proposed Portfolio To: Brad Wechsler Cc: Barrett Tea= < », "Jeffrey Epstein jeevaca=ion@gmail.com <mailto:jeevacation@gmail.com> )" <jeevacatio=@gmail.com <mailto:jeevacation@gmail.com», "Nelson, Justin 0" < Brad, Below would be our proposed investments breakdown for=$20mm: Theme Proposed Investment • $ 2,500,0=0 • $ 2,500,000 ▪ $ 2,500,000 • $ 2,500,000 ▪ $ 6,000,000 EFTA_R1_01323524 EFTA02348982 $ 1,000,000 $ 3,000,000 &n=sp; $ 20,000,000 =/u> 1.=nbsp; Consumer Discretionary: Rising disposable income, lower oil prices, labor market strengthening an= tame inflation should continue to boost confidence and spending.=/u> Ticker Name OW<=> 130.00<=u> OW<=> 135.00<=u> OW<=> 162.00<=u> OW<=> 127.00<=u> OW<=> 10.00</=> Source: Bloomberg, WPM 1=/26/2015 2.=nbsp; eGaming / Interactive Gaming: =/p> There are more than 700 different eGames events annually (ESPN plans to b=oadcast an eGame event for the first time in 2016), with a fan base that ex=eeds 260 million people. 2015 marks the first year global games market sale= are projected to overtake filmed entertainment bringing in $91.5 billion and is=forecast to rise to $113 billion by 2018. Despite an addressable market man= times larger than ten years ago, valuations for the leading gaming vendors=are trading at significantly lower multiples than at the top of the last cycle. 2 EFTA_R1_01323525 EFTA02348983 Name Ratinga> Target<=> ADR<=u> UBISOFT ENTERTAINMENT OW<=> 20.00</=> UBSFY</=> SQUARE ENIX HOLDINGS CO LTD OW<=> 4000 &nb=p; NINTENDO CO LTD N 19,000.00a> NTDOY</=> NVIDIA CORP N 24.004=> &nb=p; TENCENT HOLDINGS LTD OWa> 187.00<=u> TCEHY</=> Source: Bloomberg, JPM 1426/2015 3 EFTA_R1_01323526 EFTA02348984 3.=nbsp; Healthcare: The percentage of the American population that is over 65 years old has i=creased from 13% in 2010 to an estimated 18% in 2025. Company pipelines hav= also become more robust with a 54% increase since 2007 in the number of dr=gs gaining FDA approval. We think the sell-off which was due to the practices o= a few select companies was too broad and overdone. We would use this as an=opportunity to add to our core names. Name Rating<=> Target<=> BRISTOL-MYERS SQUIBB CO OW<=> 78.00<1=> PFIZER INC OW<=> 40.00</=> MERCK & CO. INC. OW<=> 66.00<1=> Source: Bloomberg, JPM 1=126/2015 4.=nbsp; Defense: Geopolitical events in Rus=ia, the Middle East and the South China Sea are forcing governments to quic=ly ramp up defense spending. Defense stocks are well positioned in a l=w-growth environment with high earnings visibility, improving defense budget outlooks, and good shareholder return.=nbsp; Name 4 EFTA_R1_01323527 EFTA02348985 Rating<=> Target<=> GENERAL DYNAMICS CORP OW<=> 169.00<=u> NORTHROP GRUMMAN CORP N 198.00<=u> BOEING CO/THE OW<=> 177.00<=u> RAYTHEON COMPANY OW<=> 130.00<=u> LOCKHEED MARTIN CORP N 225.00<=u> Source: Bloomberg, WPM 1=126/2015 S.=nbsp; Preferreds: (We would like to put one turn o= leverage on these in the margin account) Preferreds performed quite well amidst recent market turbulence, with rap=d price and liquidity recovery. While Preferreds, as hybrid securitie=, might have been expected to experience more volatility during this period= we believe that the fundamental strength of bank balance sheets as well as the securit=es' fixed income duration (as rates rallied) cushioned the sector.&=bsp;The broader firm tone in the markets coupled with the fact that bank ea=nings season is largely completed and the market saw no preferred issuance is creating a strong technical backdrop fo= the assets. Indicative Pricing CUSIP=ISIN 5 EFTA_R1_01323528 EFTA02348986 Secur=ty Ask P=ice Ratin=s (Moody's/S&P) Next C=ll Date YLD t= NXT Call Back-=nd Coupon Reset Inter=st Rate Duration QDI /=DRD Eligible Indus=ry Sector Non-Call 5yr &nb=p; &=bsp; 38148BAB4 GS 5 3/8 Perp 99.500 Bal / BB 5/10/2020 = 5.50 3mL+392.2b=s 6 EFTA_R1_01323529 EFTA02348987 = 3.96 Yes / Ye= Financial 617474AA9 MS 5.55 Perp 100.750 Bal / BB 7/15/2020 = 5.37 3mL+381bps=u> = 4.13 Yes / Ye= Financial Non-Call 10yr &nb=p; &=bsp; 46625HiO4 WM 6 3/4 Perp 106.875 7 EFTA_R1_01323530 EFTA02348988 Baa3 / BBB- 2/1/2024 = 5.70 3mL+378bps=u> = 6.35 Yes / Ye= Financial 060505ENO BAC 6.1 Perp 99.750 Bat / BB+ 3/17/2025 = 6.13 3mL+389.8b=s = 7.10 Yes / Ye= Financial 1729671M4 C 5.95 Perp 96.875 Bat / BB+ 5/15/2025 = 6.39 3mL+390.5b=s = 7.02 Yes / Ye= 8 EFTA_R1_01323531 EFTA02348989 Financial = Source: Bloomberg 10/2015 &=bsp; &nb=p; 6.=nbsp; Frontier Communications: FTR 8'h% 04/15/20 Indicative Offer: 104.50 YTM: 7.30% <1=> Frontier is the largest ru=al telecom company in the U.S., focused on providing services to small and m=dium- sized cities. With a market cap of $5billion, FTR is the 5th largest U= wireline company. Over the last 5 years, FTR has increased revenue 5x, and has achieved geographic diversif=cation & product mix through tactical acquisitions of broadband assets f=om both AT&T and Verizon. The bonds offer attractive relative value, pi=king up "200bps vs. BB comps and —50bps over single-B comps. Frontier issued $6.6bn of bonds on September 11th to b=ck its purchase of landline assets from Verizon Communications, a deal larg=ly anticipated by the market. Post issuance, the supply overhang has now be=n virtually removed from the Frontier complex. 7.=nbsp; Structured Notes: In these volatile markets,=we continue to like structured notes that provide protection on the downsid= coupled with unlimited upside or double-digit coupons. We will show these a= we think pricing looks interesting. <=pan style="font-size:8.0pt;font-family:"Verdana","sans- ser=1";color:#5f5f5r> 4=> <=pan style="font-size:8.0ptfont-family:"Verdana","sans-ser=f";color:filf497d">Paul Barrette Managing Director I Global Investment Oppo=tunities Group I J.P. Morgan Securities LLC I 1.P. Morgan Private Bank I <=>.I.P. Morgan Chase Bank N.A. 320 Park Avenue, 14th Floor, New York, NY 10=22 I T:IMIN <tel:%28212%29%20622-2770> I paul.s.barr=tt@jpmorgan.com <mailto:paul.s.barrett@jpmorgan.com> 9 EFTA_R1_01323532 EFTA02348990 NOT AN=OFFICIAL CONFIRMATION: For informational p=rposes only. This report does not represent an official account of th= holdings, balances, or transactions made in your account and is being prov=ded at your request. Please refer to your monthly account statement for the official record of all of your ac=ount activities. For question, please call your J.P. Morgan represent=tive. In discussion of options and other strategies, results and risks ar= based solely on hypothetical examples cited; actual results and risks will=vary depending on specific circumstances. Investors are urged to consider carefully whether option or option-related p=oducts in general, as well as the products or strategies discussed herein a=e suitable to their needs. In actual transactions, the client's cou=terparty for OTC derivatives applications is JPMorgan Chase Bank, N.A., and affiliates. For a copy of the "Ch=racteristics and Risks of Standardized Options" booklet, please con=act your JPMorgan Advisor. 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, conf=dentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.=om/pages/disclosures/email <http://www.=pmorgan.com/pages/disclosures/email> . <=p> This email is confidential and subject to important disclaimers and conditio=s 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/disc=osures/email <http://www.jpmorgan.com/p=ges/disclosures/email> please note Th= information contained in this communication is confidential, may be att=rney-client privileged, may constitute inside information, and is intend=d only for the use of the addressee. It is the property of JEE Una=thorized use, disclosure or copying of this communication or any part th=reof is strictly prohibited and may be unlawful. If you have received th=s communication in error, please notify us immediately by return e•ma=l or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copie= thereof, including all attachments. copyright -all rights reserved <=div> <Gaming.zip> </=lockquote> 10 EFTA_R1_01323533 EFTA02348991 <Defense.zip> <Consumer.zip> <Healthcare.zip> 11 EFTA_R1_01323534 EFTA02348992