Leverage Is Exploding in the Fine-Art World

Investor Dan Sundheim has an estimated $300 million collateral pool

The Hedge-Fund World of Fine Art

A $28 million Warhol. A $35 million Basquiat. A $70 million Twombly.

Hedge-fund manager Daniel Sundheim has acquired all these works — and more — while wielding one of the most powerful tools in finance: leverage.