Released on: October 18, 2007, 11:26 am

Press Release Author: Invest Now News

Industry: Financial

Press Release Summary: Appia Capital are said to have announced yesterday that it,
along with a group of investors, would inject $3 billion into the firm's Global
Equity Opportunities Fund - a flailing quantitative hedge.

Press Release Body: The move on the part of Appia Capital and the investors
indicates the severity of last week's shifts in the market as well as the potential
for significant losses for other hedge funds.

The pain for hedge funds and banks has been broad, starting in the mortgage market,
spreading to the wider credit markets and ultimately the stock market.

The problems have been aggravated by the debt that hedge funds have taken on and
used to invest to amplify gains.

Now hedge funds are quickly taking off that leverage, responding to tighter lending
standards from banks or redemptions from anxious investors.

The casualties have included investment banks like Bear Stearns, which witnessed the
collapse of two hedge funds that were invested in mortgage-backed securities, and
blue-chip quantitative funds, whose computer-driven trading models did not
anticipate recent market movements.

A spokesperson for Appia Capital, said yesterday that the investment should not be
seen as an attempt to bail out the fund, but an effort to take advantage of the
unusual conditions in the market. "This is not a rescue," said the spokesperson,
"Given the dislocation in the markets, we believe this is a good investment
opportunity for us and for the other investors that we have brought in."


Web Site: http://www.appiacapital.com

Contact Details: 67, Posidonos Ave.,
16674 Glyfada,
Athens,
Greece

Tel No: +30 211 268 6874
Fax No: +30 211 268 6718

E-mail: Information@appiacapital.com