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Invest For Kids

Presentation by

Omega Advisors, Inc.

Leon G. Cooperman Chairman and CEO Omega Advisors, Inc.
Investment Manager:

Omega Advisors, Inc.

Wall Street Plaza 88 Pine Street, 31st Floor New York, NY 10005 (212) 495-5200

November 9, 2011

PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH POOLS WHOSE PARTICIPANTS ARE LIMITED TO QUALIFIED ELIGIBLE PERSONS, AN OFFERING MEMORANDUM FOR THIS POOL IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A POOL OR UPON THE ADEQUACY OR ACCURACY OF AN OFFERING MEMORANDUM. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS OFFERING OR ANY OFFERING MEMORANDUM FOR THIS POOL.

Omega Advisors, Inc.

Exhibit 1 S&P 500 Stock and Sector Correlation

1.0 0.9 0.8 A v e rage C orre la tion 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 D e c-8 9 D e c-9 0 D e c-9 1 D e c-9 2 D e c-9 3 D e c-9 4 D e c-9 5 D e c-9 6 D e c-9 7 D e c-9 8 D e c-9 9 D e c-0 0 D e c-0 1 D e c-0 2 D e c-0 3 D e c-0 4 D e c-0 5 D e c-0 6 D e c-0 7 D e c-0 8 D e c-0 9 D e c-1 0 D e c-1 1 D e c-1 2

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Average sector correlation
0.92 0.74

Average stock correlation

Data as of October 6, 2011 Source: Goldman Sachs Global ECS Research and Omega Advisors, Inc.

Omega Advisors, Inc.

Exhibit 2

U. S. Economic Environment
Q4 to Q4
Real GDP (qoq % saar) Real Consumer Spending (qoq % saar) Real Business Equipment & Software (qoq % saar) Core PCE Inflation (qoq % saar) Unemployment Rate (avg %) Federal Funds Target (%) S&P 500 Operating Earnings (yoy %) S&P 500 Operating EPS ($)
(a) Year-end actual/forecasts source: BEA, Bloomberg, M acroeconomic Advisors, and Omega Advisors, Inc.

2010 3.4 3.0 16.6 1.0 9.6 (a) 0.25 (a) 36.6 85.5

2011E 1.9 1.7 8.0 1.8 9.0 (a) 0.25 (a) 13.5 97.0

2012E 2.2 2.0 7.5 1.5 9.0 (a) 0.25 (a) 5.0 102.0

Omega Advisors, Inc.

Exhibit 3
14 13 12 11 10

Household Debt Service Ratio and Saving Rate

14 12 10 8 6 4 2 0

82

Saving - Monthly Data from 12/80 to 8/11, Debt - Quarterly Data to 11:q2 Debt Service Payments as a % of Disposable Personal Income (left scale) Personal Saving Rate (right scale)

84

86

88

90

92

94

96

98

00

02

04

06

08

10

Source: Federal Reserve Board, BEA, and Omega Advisors, Inc.

95 90 85 80 75 70 65 60

Household Liquid Assets % Liabilities

95 90 85 80 75 70 65 60

Quarterly Data from 97:q4 to 11:q2 Households Liquid Assets as a % of Household Liabilities Source: Federal Reserve Flow of Funds and Omega Advisors, Inc.

98

99

00

01

02

03

04

05

06

07

08

09

10

11

40 20 0 -20 -40 -60 -80 -100

Bank Lending Standards Easing

Consumer

C&I

90

91

Quarterly Data from 90:q3 to 11:q3 Net % of Banks Easing Standards for C&I Loans, avg of Small, Medium & Large Bus. Net Percent of Banks Indicate More Willing to Make Consumer Loans

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

40 20 0 -20 -40 -60 -80 -100

Source: FRB Senior Loan Officers Opinion Survey and Omega Advisors, Inc.

Omega Advisors, Inc.

Why We are Not Likely to Experience Another 2008 Type Decline?

Exhibit 4

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Banking system has gone from insolvency to strong capital ratios. No weak/opaque shadow banking system to contend with. The financial condition of Corporate America is excellent. Profit and revenue growth are still good as is growth in dividends and share buybacks. Business inventories are in excellent shape. There is no bubble in housing as in 2008 and most cyclical sectors of the economy are at a very low percentage of GDP. Household debt/GDP, while still high, has dropped from 95.4% to 85.1%. Debt service ratio substantially improved. The consumer savings rate has gone from 1% to 5.0%. Lower dollar should be a plus for exports. Oil price decline from $115 to $91 WTI ($130 to $111 Brent) per barrel positive for consumers and economy generally. FED policy of zero interest rates will ultimately work. Tame wages and decent productivity. Decent M&A activity and large pool of private equity capital. Investors are conservatively postured. Market valuation very appealing both absolute and particularly relative to alternatives (financial repression).
4

Omega Advisors, Inc.

Exhibit 5
Why Odds Dont Favor Recession
Certainly, the odds of a recession have increased owing to the dent to consumer and business confidence from the tortured Washington debt negotiations, the inappropriate ECB monetary policy/faulty German government policy, and the sharp and swift decline in equity prices. Notwithstanding the above, we believe the odds are low that the U.S. will enter a recession. We expect real GDP growth over the next several quarters of approximately 2.0%/2.5%, with the end of the Japan tsunami constraint to growth and lower energy prices adding a lift to economic activity . Why no recession. First, there are certain characteristics near always present at the start of a recession, including: tight monetary policy, an inverted interest-rate yield curve, positive real short-term interest rates, accelerating/problematic inflation, excess inventory relative to final sales, year-over-year declines in the Conference Boards composite of leading economic indicators, year-over-year declines in private-sector payrolls, well above-average spending on cyclical components (consumer durable, capex, residential investment) relative to GDP. None of these characteristics are present today, nor do we expect their arrival anytime soon. Second, our assessment of the fundamentals and high-frequency data points do not indicate recession. The positive fundamentals include: steady, albeit slow, growth in private-sector employment, significant and broad-based pent-up demand in the consumer/capex/construction sectors and catalysts to activate this demand, lower energy prices benefiting real household income, an already above-average personal-saving rate, an improving household balance sheet with debt service at a decade low, a very strong corporate balance sheet, zero/near-zero interest rates. Encouraging high-frequency data points include: strong steel production, truck tonnage, and rail car loadings, respectable profit growth, ISM manufacturing and service indices which indicate moderate expansion, a cheap U.S. dollar benefiting export growth,, increasing C&I loans, home prices which have stabilized, improving initial employment jobless claims, bank swap spreads which are not indicative of recession, and an effectively capitalized banking sector in the U.S. Third, a good portion of the first half economic weakness was owing to temporary factors. We estimate that in the first half, at an annual rate, the spike of energy prices and the supply-chain disruptions following the Japan earthquake reduced real GDP growth by about one and half percentage points. These two factors have faded. Fourth, global monetary policy is becoming more accommodating.
Omega Advisors, Inc.

Exhibit 6 Euro Zone Will Be Okay ? We have been very disappointed in the tardiness and substance of policies offered by the eurozone governments and the ECB to address the European sovereign-debt issue. This tardiness and lack of substance has taken its toll on risk assets. Nonetheless, we do believe that governments and the central bank in Europe, for now, will address the sovereign-debt issue. EFSF permitted to buy weak peripheral debt in the primary and secondary markets EFSF permitted to extend loans to shore up bank balance sheets EFSF/IMF likely to fund Greece through mid-2014 ECB purchasing Italian and Spanish debt ECB providing unlimited liquidity to banks ECB moderating its tight money policy ECB purchasing covered bonds from banks, aiding bank funding Asian governments likely to support euro-zone sovereign debt EFSF lending capacity lifted to !440 billion and likely to increase further Euro-zone bank re-capitalizations coming Increased dollar swap funding available to euro-zone banks
Note: EFSF European Financial Stability Fund
Omega Advisors, Inc.

Exhibit 7

Crude Oil Price

160 140 120 100 80 60 40 20 160 140 120 100 80 60 40 20

2006

2007

2008

2009

2010

2011

Daily Data from January 2006 to 10/24/11

Crude Oil Price ion US $ - WTI

Source: Bloomberg and Omega Advisors, Inc.

Crude Oil Price in US $ - Brent

Omega Advisors, Inc.

Exhibit 8
Historical Bear Market Cycles
% Change Peak to Trough (20.6)% (14.6) (20.7) (13.7) (28.0) (22.2) (32.9) (47.7) (19.1) (27.1) (33.5) (19.9) (19.3) (49.1) (56.8) (28.3)% (19.4) Length of Peak to Trough (months) 12 8 17 15 6 8 19 21 15 21 4 3 1 31 17 13.2 P/E Contraction Peak to Trough (38.4)% (18.3) (15.3) (10.3) (33.8) (26.7) (31.2) (63.2) (26.6) (24.7) (41.2) (20.1) (19.3) (14.9) (48.3)* (28.8)% (21.8)

Peak Date S&P 500 Jun 1948 Dec 1952 Jul 1956 Jul 1959 Dec 1961 Jan 1966 Nov 1968 Dec 1972 Dec 1976 Nov 1980 Aug 1987 Jul 1990 Jul 1998 Mar 2000 Oct 2007 Average Apr 2011 17.06 26.59 49.74 60.62 72.64 94.06 108.37 119.12 107.46 140.52 336.77 368.95 1186.75 1527.46 1565.15 1363.61

Trough Date S&P 500 Jun 1949 Aug 1953 Dec 1957 Oct 1960 Jun 1962 Sep 1966 Jun 1970 Sep 1974 Mar 1978 Aug 1982 Dec 1987 Oct 1990 Aug 1998 Oct 2002 Mar 2009 Current(a) 13.55 22.71 39.42 52.30 52.32 73.20 72.72 62.28 86.90 102.42 223.92 295.46 957.28 776.77 676.53 1099.23

*Excluding financial sector write-downs (a) As of October 3, 2011 Source: Standard & Poor's, UBS Investment Research, and Omega Advisors, Inc.
Omega Advisors, Inc.

Exhibit 9

The Economic and Profit Cycles

Date of Date of Re ce s s ion Economic Economic Duration S&P 500 Profit Pe ak S&P 500 Profit Trough % Change in Profit Pe ak Trough (month) Date M onths Afte r Re ce s s ion Starte d Date M onths Afte r Re ce s s ion End Pe ak to Trough -3.3 Nov 1948 Oct 1949 11 May 1949 6 Nov 1949 1 -1.6 Jul 1953 May 1954 10 Aug 1953 1 Nov 1953 -6 -17.0 Aug 1957 Apr 1958 8 Aug 1957 0 Aug 1958 4 -11.7 Apr 1960 Feb 1961 10 Aug 1959 -8 May 1961 3 -12.9 Dec 1969 Nov 1970 11 Aug 1969 -4 Nov 1970 0 -14.8 Nov 1973 Mar 1975 16 Aug 1974 9 Aug 1975 5 -4.3 Jan 1980 Jul 1980 6 Feb 1980 1 Aug 1980 1 -19.1 Jul 1981 Nov 1982 16 Nov 1981 4 Feb 1983 3 -14.9 Jul 1990 Mar 1991 8 May 1989 -14 Nov 1991 8 -22.2 Mar 2001 Nov 2001 8 Aug 2000 5 Feb 2002 3 -44.5 Dec 2007 Jun 2009 18 May 2007 -7 Aug 2009 2 Ave rage (months ) 11 -1 2 -15.1

Source: NBER, St andard & P oor's, and Omega Advisors, Inc.

Omega Advisors, Inc.

Exhibit 10

Market Peaks versus Economic Peaks

Date of Economic Trough Oct 1949 May 1954 Apr 1958 Feb 1961 Nov 1970 Mar 1975 Jul 1980 Nov 1982 Mar 1991 Nov 2001 Average (months) Average ('49-'81) Jun 2009 Date of Economic Peak Jul 1953 Aug 1957 Apr 1960 Dec 1969 Nov 1973 Jan 1980 Jul 1981 Jul 1990 Mar 2001 Dec 2007 Expansion Duration (month) 45 39 24 104 35 57 11 91 120 73 60 45 Date of S&P 500 Peak Dec 1952 Jul 1956 Jul 1959 Nov 1968 Dec 1972 Feb 1980 Nov 1980 Jul 1990 Mar 2000 Oct 2007 Market Peak Prior to Eco Peak (month) 7 13 9 13 11 -1 8 0 12 2 7.4 8.6

Source: NBER, Standard and Poor's, and Omega Advisors, Inc.

Omega Advisors, Inc.

10

Exhibit 11
% 6
4 2 0 -2 -4 -6 -8 -10 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
Quarterly Data from 69:q4 to 11:q2

U.S. GDP Gap

% 6
4 2 0 -2 -4 -6 -8 -10

(Nominal GDP - CBO Potential GDP) as a % of Potential GDP

Source: CBO, Bloomberg, and Omega Advisors, Inc.

Percentage Points 4
2 0 -2 -4 -6 70 72 74 76 78 80

U.S. Unemployment Rate Gap

Percentage Points 4
2 0 -2 -4

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

-6

Quarterly Data from 69:q4 to 11:q3

CBO NAIRU (Nonaccelerating Inflation Rate of Unemployment) less the Unemployment Rate
Source: CBO, Bloomberg, and Omega Advisors, Inc.

Omega Advisors, Inc.

11

Exhibit 12

S&P 500 P/E and Inflation(a)

CPI (Y/Y% change) <1% 1% to 3% 3% to 5% 5% to 7% >7% Average (1960 to 2009) S&P 500(b) P/E Ratio 15.79x 17.21 15.59 12.81 8.70 14.98x 12.5x

In this same period 10 year U.S. Government Bond, yielded an average of 6.67%

(a) S&P 500 P /E on 12-mont h forward operat ing earnings (b) As of Oct ober 24, 2011. 12-mont h forward operat ing earnings of $100.0 Source: BLS, St andard & P oor's, T homson Financial, and Omega Advisors, Inc.

Omega Advisors, Inc.

12

Exhibit 13
Valuation: Attractive versus Core Inflation, Real Bond Rate, and Corporate Bond
(Monthly Data from 1960 to 2009)
22 20 18 16 14 12 10 8 6 < 1.5% 1.5 to 2.0 2.0 to 2.5

S&P 500 Forward PE versus Core PCE Inflation

Current

22 20 18 16 14 12 10 8 6

Average P/E

Average P/E

Core PCE, Y/Y %change

2.5 to 3.5

3.5 to 4.5

4.5 to 6.0

6.0 to 8.0

>8.0%

18 16

S&P 500 Forward PE versus Real Rate

18 16

Average P/E

Average P/E

14 12 10 8 Less than 0

Current

14 12 10

0 to 1

10-Year Treasury Yield less Core PCE Inflation, in percentage points

1 to 2

2 to 3

3 to 4

4 to 6

6 to 8

Greater than 8

20 18

S&P 500 Forward PE versus Corporate Bond Yield

Current

20 18

Average P/E

Average P/E

16 14 12 10 8 Less than 5% 5 to 6 6 to 7 7 to 8 8 to 9 9 to 10 10 to 12 Greater than 12%

16 14 12 10 8

Moody's Long-term Industrial Bond Yield in %

Source: Standard and Poor's, Thomson Reuters, FRB, BEA, Moody's, and Omega Advisors, Inc

Omega Advisors, Inc.

13

Exhibit 14
3 2 1 0 -1 -2 -3
-1 SD +1 SD Fair Value

Blended Valuation - S&P 500 with Inv.-Grade Corp. Bond Yield

Overvalued

3 2 1 0 -1

Undervalued

-2 -3

72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
Monthly Data from 1/71 to 10/24/11

50% Market Valuation to INDUSTRIAL Bond Yields, and 50% to Core Inflation
Source: FRB, BLS, Standard & Poor's, Moody's Investors, and Omega Advisors, Inc.

20 15 10 5 0 -5

Equity Risk Premium - S&P 500

20 15 10 5 0 -5

60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
Monthly Data from 1/60 to 10/24/11
Earnings Yield on Trend Earnings for the S&P 500 - 10-year Tips Yield
Source:Standard and Poor's, Bloomberg, FRB, and Omega Advisors, Inc.

Omega Advisors, Inc.

14

Exhibit 15

Equity Risk Premium (VIX Adjusted) - S&P 500

6 4 2 0 -2 -4 -6 -8
Average +1 SD

6 4 2 0 -2 -4 -6 -8

-1 SD

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Monthly Data from 1/90 to 10/24/11

S&P 500 Forward Earnings Yield less VIX Adjusted 10-year Treasury Yield
Source: Standard & Poor's, FRB, Bloomberg, and Omega Advisors, Inc.

Omega Advisors, Inc.

15

Exhibit 16

Bear Market Valuation

Date of Date of Re ce ss ion Economic Economic Duration Pe ak Trough (month) Apr 1960 Feb 1961 10 Dec 1969 Nov 1970 11 Nov 1973 Mar 1975 16 Jan 1980 Jul 1980 6 Jul 1981 Nov 1982 16 Jul 1990 Mar 1991 8 Mar 2001 Nov 2001 8 Dec 2007 Jun 2009 18 Ave rage 12 Curre nt (10/24/11) S&P 500 P/E at Its Lowe s t in the Re ce s sion Date P/E Apr 1960 16.04 Jun 1970 13.17 Sep 1974 6.97 Mar 1980 6.68 Feb 1982 7.36 Oct 1990 12.15 Mar 2001 21.30 Feb 2009 12.15 12.0 13.2 10-Ye ar Tre asury Yld 4.28 7.84 8.04 12.75 14.43 8.72 4.89 2.87 8.0 2.23 LT Corp. B ond Yie ld 4.61 8.55 9.44 13.11 15.53 10.10 7.23 6.56 9.4 4.66 Earnings Yie ld le s s Tre asury Corp. B ond Y/Y %ch in Core CPI 1.96 1.63 4.24 -0.25 -0.96 1.06 6.30 4.90 4.12 2.23 1.86 2.37 -0.85 -1.95 4.38 -0.49 -1.87 2.87 -0.19 -2.54 2.08 5.36 1.67 6.44 1.76 5.33 0.34 2.90 3.45 5.59

P/E and earnings y ield are based on monthend S&P 500 p rice and 4-quarter trailing op erating EPS. Treasuruy and corp . bond are average monthly y ield.
Source: NBER, St andard & P oor's, T homson/Reut ers, FRB, Moody's, BLS, Bloomberg, and Omega Advisors, Inc.

At historical average of earnings yield less investment-grade corp.-bond yield, S&P 500 is discounting 2012 EPS of about $63. At 2009 earnings yield less investment-grade corp.-bond yield, S&P 500 is discounting 2012 EPS of about $79. In recession, earnings decline, on average, 15%; S&P 500 current discounting an earnings decline of 18%-35% in 2012.

Omega Advisors, Inc.

16

Exhibit 17

Current versus March 2009

10/24/2011 S&P 500 Index PE (4Q trailing operating EPS) Dividend Yield 10-Year T. Bond Yield Long-term Corp. Bond Yield High-yield Bond Yield Earnings Yield - T. Bond Yield Earnings Yield - Corp. Bond Yield S&P 500 EPS (4Q trailing) S&P 500 DPS 1254.19 13.2 X 2.0 % 2.23 4.66 8.04 5.33 p.p. 2.90 94.80 25.18 3/9/2009 676.53 12.4 X 4.0 % 2.89 6.74 19.35 5.15 p.p. 1.30 54.37 27.25

Source: Standard and Poor's, FRB, Bloomberg, Moody's, Thomson Reuters, and Omega Advisors, Inc.

Omega Advisors, Inc.

17

Exhibit 18
2000 1503 1005 508

S&P 500

2000 1503 1005 508

10

54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 S&P 500 - Monthly Data from 7/53 to 9/11 S&P 500, shaded areas were recessions
Source: Standard and Poor's and Omega Advisors, Inc.

10

S&P 500 Long-term Trend

20 15 10 5 0 -5

S&P 500 10-Year Return

20 15 10 5 0 -5

35

40

45

50

55

60

65

70

75

80

85

90

95

00

05

10

Annual Data from 1936 to 9/30/11

S&P 500 10-year Rolling Annualized Total Return (%)

Source: Standard and Poor's, and Omega Advisors, Inc.

Omega Advisors, Inc.

18

Exhibit 19

Free Cash Flow Yield over Corporate Bond Yield

4 2 0 -2 -4 -6 -8 4 2 0 -2 -4 -6 -8

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

Annual Data from 1995 to 9/30/2011

S&P 500 Free Cash Flow Yield - Moody's Investment-Grade Corp. Bond Yield
Source: Standard and Poor's, UBS, Moody's, Bloomberg, and Omega Advisors, Inc.

Omega Advisors, Inc.

19

Exhibit 20
35 30 25 20
10/24 PE on $85

S&P 500 PE Ratio

35 30 25 20

15 10 5

Average '70 to '09

15 10

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Monthly Data from 12/84 to 10/24/11

S&P 500 P/E on 12-month Forward Operating EPS

Source: Standard and Poor's, Thomson Financial, and Omega Advisors, Inc.

8 6 4 2 0 -2 -4 -6
Avg 70 to 09

Stock - Bond Spread

8 6 #
10/24/30 on EPS $85

4 2 0 -2 -4

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Monthly Data from 1970 to 10/24/11

-6

S&P 500 Earnings Yield (12M forward operating EPS) less 10-Year Gov't Bond Yield
Source: FRB, Standard & Poor's, Thomson Financial, and Omega Advisors, Inc.

Omega Advisors, Inc.

20

Exhibit 21
Average Yield of High Yield Corporate Bonds
30
11/21/08 @25.0%

30

25

25

20

3/9/09 @19.3%

20

15

15

10

@8.04%

10

2006

2007

2008

2009

2010

2011

Weekly Data from Sept. 2005 to 10/24/11 The Avg. Yield Weighted by Par, all Bonds in FINRA-Bloomberg US Corp. Bond Index (NBBHYL)
Source: FINRA-Bloomberg, and Omega Advisors, Inc.

SPX 500 P/E 11/08 = 900/65 2/09 = 800/62 = 13.9x = 12.9x

Current = 1254/97.0 = 12.9x 1254/102.0 = 12.3x

Omega Advisors, Inc.

21

Exhibit 22

S&P 500 Companie s Excluding Financials

Dividend Yield Higher Than 10-Yr T-Note Yield % of Companies % of Companies 2011 (a) 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 37.6 14.7 11.4 45.5 6.6 1.7 4.8 5.5 5.6 10.1 3.6 3.1 4.7 3.8 2.2 3.6 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 4.5 2.3 5.0 0.9 1.0 4.0 2.0 3.4 3.2 5.4 3.0 1.9 3.5 7.7 2.4

(a) As of October 24, 2011 Source: Standard and P oor's, Fact set , Bloomberg, and Omega Advisors, Inc.

Omega Advisors, Inc.

22

Exhibit 23

S&P 500 Dividend Yield and 10-Year Treasury Yield

18 16 14 12 10 8 6 4 2 0 18 16 14 12 10 8 6 4 2 0

38 41 44 47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95 98 01 04 07 10 Dividend Yield - Monthly Data from 1938 to 9/11, Treasury - Monthly Data from 1953 to 9/11

S&P 500 Dividend Yield

10-Year Treasury Yield

Source: Standard and Poor's, FRB, and Omega Advisors, Inc.

Omega Advisors, Inc.

23

Exhibit 24
18 16 14 12 10 8 6 4 2 0
38 41 44 47 50 53 56 59 62 65 68 71 74 77 80 83 86 Monthly Data from 1938 to 9/11 89 92 95 98 01 04 07 10

S&P 500 Dividend Yield and Moody's AAA Corporate Bond Yield

18 16 14 12 10 8 6 4 2 0

S&P 500 Dividend Yield

Moody's AAA Corporate Bond Yield

Source: Standard and Poor's, Moody's, and Omega Advisors, Inc.

18 16 14 12 10 8 6 4 2 0
38 41 44

S&P 500 Dividend Yield and Moody's BAA Corporate Bond Yield

18 16 14 12 10 8 6 4 2

47

50

53

56

59

62

65

68 71 74 77 80 83 86 Monthly Data from 1938 to 9/11

89

92

95

98

01

04

07

10

S&P 500 Dividend Yield

Moody's BAA Corporate Bond Yield

Source: Standard and Poor's, Moody's, and Omega Advisors, Inc.

Omega Advisors, Inc.

24

Exhibit 25

Nominal GDP Growth and 10-Year G. Bond Yield

20 20

15

15

10

10

-5

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

-5

GDP - Quarterly Data from 79:q4 to 11:q2, Yield - Monthly Data to 9/11

Nominal GDP Growth, year-over-year %change 10-year Gov't Bond Yield

Source: BEA, FRB, and Omega Advisors, Inc.

10-year Treasury yield approximates year-over-year %change of nominal GDP growth

Omega Advisors, Inc.

25

Exhibit 26

Global Risk Appetite

10 8 6 4 2 0 -2 -4 -6 -8
8/16/'82 -5.37 10/9/'02 -5.76

10
Euphoria

8 6 4 2 0 -2

Panic

-4
11/20/'08 -6 -5.54 10/4/'11 -6.61

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

12

-8

Daily Data from 1982 to 10/17/11

Credit Suisse Global Risk Appetite Index, incl. Equity and Credit
Source: Credit Suisse Fixed Income Research, Thomson Reuters Datastream, and Omega Advisors, Inc.

Omega Advisors, Inc.

26

Exhibit 27 Risks to Our Equity Market Outlook

The opportunity for a self-sustaining economic expansion is threatened by weak employment growth and/or the feedback to the economy from lower equity prices/euro-zone sovereign-debt issues. The result is the possibility of recession The core euro-zone governments, IMF, and ECB fail to contain the sovereign-debt issue and instigate further sustained contagion to Italy and Spain, in turn causing a global recession and weaker than expected corporate profits A dent to global growth if there is a hard landing in Chinas economy Home prices enter another phase of accelerating decline, denting consumer confidence and spending Middle East turmoil intensifies and energy prices spike, constraining real income and spending Budget deficit issues in the U. S. and the unwillingness of Washington to fully address the deficit constrain U.S. growth The uncertain effects in the U.S. surrounding consumer and financial-sector deleveraging and the collision of this deleveraging with public-sector balance-sheet leveraging The uncertain economic and capital-market effects of heightened global regulation on financial markets A continuing significant reliance of the U.S. on foreign capital, particularly Chinese capital at a time when there are differences in currency policy between the U.S. and China Capital controls imposed by emerging economies to stem the rise in their currencies and protect against asset bubbles A still not friendly Administration re the corporate sector
Omega Advisors, Inc.

27

Exhibit 28 Presidential Platform 1. 2. 3. Get out of Iraq and Afghanistan. Provide every returning soldier with a free four year college education or trade school of their choice. Set up a peace time WPA effort to channel a portion of the saving into rebuilding US infrastructure. Unleash the domestic energy industry to develop domestic energy supplies and reserves. This will create employment and reduce our dependency on foreign suppliers. Government spending should be limited to a growth rate at least 1% below the level of nominal GDP growth. Freeze entitlements and raise the social security retirement age to 70 with an exception of those that work at hard labor. 10% income tax surcharge for three years on those that earn over $500,000 per year. 5% VAT tax to get at the underground economy and deal with the deficit. Tackle health care in a serious way. Reinstate the Up-Tick rule for short sales, ban or curtail High Frequency trading and limit CDS trading to those that own the underlying bonds. The high frequency traders are turning the best capital market in the world into a casino and scaring the public. This is not in the public interest.
28

4. 5. 6. 7. 8. 9.

Omega Advisors, Inc.

Exhibit 29

The Investment Environment

Economic Outlook: Slow growth owing to economy wide deleveraging. Tame inflation owing to substantial output and labor excess capacity. Sub-par employment growth owing to regulation/slow growth in final demand. Slow profit growth owing to elevated profit margins and slow nominal GDP growth. Economic expansions average in duration and below average in magnitude. Changing composition of GDP with consumption declining as a percentage of output and capital spending, residential investment, and exports increasing as a share of output.

Real GDP GDP Price Deflator Nominal GDP Profits Dividend and Buyback Yield Total Return S&P 500 10 Year T-Bond *constant P/E

1960-2007 3.3% 3.7 7.2 8.2 3.4 10.4%

Next Decade 2%-2.5% 2-2.5 4.0-5.0 4-5 3-4 7% - 9%* Negative

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Exhibit 30

Profit Margin
14 14

12

12

10
Average

10

63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11
Quarterly Data from 62:q4 to 11:q2

Pretax Corporate Profits as a % of Nominal GDP

Source: BEA, and Omega Advisors, Inc.

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Exhibit 31

Omega Advisors, Inc.

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Exhibit 32 Omega Advisors 7 Long Ideas

Click here for full notes from the conference, featuring investment ideas from Lasry, Perry, Rosenstein, Zell & more
3&452*
AAPL BSX KFN SLM EXXI ETFC CHRS

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!!"#$"!! 9*&42 )*+,-. 9,:* 0,)1 .),+) /*,1.1,)) ),99

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D.E D/E

D.E%(GHI%7JKL% D/E%6$MN$3&6!

Omega Advisors, Inc.

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NOTES TO INVESTMENT RESULTS This material is provided for educational purposes only and should not be construed as investment advice or an offer to sell, or the solicitation of offer to buy any security. This material discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as investment advice. This information may not be current and Omega has no obligation to provide any updates or changes. We have relied upon and assumed without independent verification, the accuracy and completeness of all information from third party sources. Any reference to a specific company does not constitute a recommendation to buy, sell or hold securities of such company. Opinions and views expressed herein are for informational purposes only and should not be construed as investment advice. They involve a number of assumptions that may not prove to be valid so that actual results could differ significantly. If any of the assumptions used in the example in this presentation do not prove true, results may vary significantly from the examples shown. These examples are for illustrative purposes only and do not purport to show actual results. Alternative Investment such as hedge funds are subject to less regulation than other types of pooled investment vehicles such as mutual funds, may make speculative investments, may be illiquid and can involve a significant use of leverage, making them substantially visible than other investments. No part of this material may, without Omegas prior written consent, be (i) copied, photocopies or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director or authorized agent of the recipient.

Omega Advisors, Inc.

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