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As Their Riches Grow, Hedge-Fund Experts Put Art in the Deal

Some Hoard Favorite Talent In a Bid for 'Wall Power'; Going Long on Ms. Arbus

Earlier this year, hedge-fund millionaire Daniel Loeb made a sweet trade. The 43-year-old partner at Third Point LLC had purchased a rare asset in 2003. He found a buyer in January and sold it for a 500% profit, making a quick $1 million.

He wasn't trading stocks or bonds. He was selling "UNO-Gebaude Haus per la pax," a 1984 painting by the German artist Martin Kippenberger. Adding to Mr. Loeb's delight, the buyer was the London gallery owned by Charles Saatchi, the famed British collector and businessman. Mr. Loeb...