One chuckles to think of hedge fund managers as patrons of the arts. But they were certainly huge buyers in the boom times. Prestige works became huge status symbols, and the market really soared. Now, Financial Week reports that the art market is experiencing some ripple effects, though no one thinks the market is about to crater. The talk is that more hedge fund collectors are making inquiries about using their art as collateral for personal loans. More leverage, sheesh. There are stronger indications that more hedge fund managers are selling their art collections outright, which may be prompting others to sell. Hey, getting stuck with an illiquid bond is bad enough. There are a few high profile auctions coming up, and people will use them as a barometer of change. 

For more:
- here's the Financial Week article