Hedge Funds Expanding Into Art

The New York Times had a story yesterday on how hedge funds are expanding into investments beyond stocks and bonds ... including art. As I've discussed in previous posts (e.g., here), the jury is still out on art investment funds, but the article suggests that investors might be willing to absorb some extra risk "in exchange for some fun and a lively dinner party conversation. In June, Mr. Hoffman [of London's Fine Art Fund] invited investors in one of his art funds to Geneva to admire and discuss some Picasso and Ed Ruscha paintings over lunch. ... [I]nvestors in WMG’s photography fund will get the first right to buy any prints in the fund." One investment manager is quoted as saying, "It’s really as much a lifestyle thing as an investment."