Your thoughts are dead on.  Russel would be a great guy to cover those guys 
for EGM for crude and products.  Please mention to Caroline we are not trying 
to crowd her out, just get more depth on funds coverage.  Also, when we talk 
about other GRM products, it will help to have more fund coverage.  (We can 
also address her issue later--I agree with you on that.)  Proceed, but I'm 
not sure about the JV with ENA issue.  Let's not go down that road 
"officially".

By the way, rough is spelled roof.

Later.....

Jeff



	Per Sekse
	02/14/2001 10:14 AM
		 
		 To: Jeffrey A Shankman/HOU/ECT@ECT
		 cc: 
		 Subject: My call this morning was re Hedge Fund Coverage for GM

I know you're busy so here are my thoughts.

The hedge fund business has expanded enough to warrant at least two people 
covering it. It makes sense that Enron has one person focussed on the natgas 
business since it is 90% of what we book right now. We're also about to get 
one of the funds trading power.  Caroline Abramo focusses on this and will 
continue to do so reporting to Fred. If for some reason that relationship 
doesn't work out, we can revisit it with her at that time.

To build up the crude oil and products trading we should have a similar 
person devoted to covering the hedge funds. That person should work for GM 
and work in partnership with ENA, kind of a JV between our groups, but with 
the origination for each product staying with the appropriate business unit, 
as you plan to do.  Given that, I would recommend putting Russell Dyk in that 
role, have him spend the next 2 months working on the crude desk to kick 
start the coverage and then move him to NY. He and Caroline would share the 
hedge fund client base and back each other up when busy or travelling. If we 
need more support, we can add an associate to work for them jointly in NY. 
Overall, we're leveraging our hedge fund relationships to generate more 
origination income for Enron.

This model also fits with the reality of hedge fund coverage at Enron, i.e. 
you need marketers with specific product knowledge close to the trading desks 
dealing direct with the fund traders. Enron Metals has their own people doing 
this today. We're simply expanding the concept to GM. Ultimately, when we get 
Enron under one rough in NY, the metals, oil and gas specialists woukld be 
able to jointly cover the clients, while providing market expertise as needed.

If you agree this makes sense, then I can tell Fred that we plan to put our 
own person in NY.

What do you think? I can stop by to discuss further any time today.

Per