| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
GAMCO INVESTORS, INC.
|
(Exact name of Registrant as specified in its charter)
|
Delaware
|
13-4007862
|
|
(State of other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
One Corporate Center, Rye, NY
|
10580-1422
|
|
(Address of principle executive offices)
|
(Zip Code)
|
(914) 921-3700
|
Registrant's telephone number, including area code
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Class
|
Outstanding at October 31, 2014
|
|
Class A Common Stock, .001 par value
|
(Including 639,750 restriced stock awards)
|
6,540,443
|
Class B Common Stock, .001 par value
|
|
19,279,260
|
INDEX
|
|||
|
|||
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
|||
|
|
||
|
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
|
|
|
||
|
|
||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
|
Condensed Consolidated Statements of Income:
|
||
- Three months ended September 30, 2014 and 2013
|
|||
- Nine months ended September 30, 2014 and 2013
|
|||
|
|
||
Condensed Consolidated Statements of Comprehensive Income:
|
|||
- Three months ended September 30, 2014 and 2013
|
|||
- Nine months ended September 30, 2014 and 2013
|
|||
|
Condensed Consolidated Statements of Financial Condition:
|
||
|
- September 30, 2014
|
||
|
- December 31, 2013
|
||
|
- September 30, 2013
|
||
|
|
||
|
Condensed Consolidated Statements of Equity:
|
||
|
- Nine months ended September 30, 2014 and 2013
|
||
|
|
||
|
Condensed Consolidated Statements of Cash Flows:
|
||
|
- Nine months ended September 30, 2014 and 2013
|
||
|
|
||
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
||
|
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
|
||
|
|
||
Item 4.
|
Controls and Procedures
|
||
|
|
||
PART II.
|
OTHER INFORMATION
|
||
|
|
||
Item 1.
|
Legal Proceedings
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 6.
|
Exhibits
|
SIGNATURES
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$
|
92,591
|
$
|
80,438
|
$
|
270,544
|
$
|
230,488
|
||||||||
Distribution fees and other income
|
15,727
|
13,545
|
46,367
|
37,420
|
||||||||||||
Institutional research services
|
2,540
|
2,394
|
6,720
|
6,940
|
||||||||||||
Total revenues
|
110,858
|
96,377
|
323,631
|
274,848
|
||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
43,316
|
39,803
|
131,258
|
113,214
|
||||||||||||
Management fee
|
3,756
|
5,629
|
13,628
|
14,455
|
||||||||||||
Distribution costs
|
15,101
|
12,769
|
44,087
|
35,650
|
||||||||||||
Other operating expenses
|
5,099
|
5,448
|
17,036
|
16,290
|
||||||||||||
Total expenses
|
67,272
|
63,649
|
206,009
|
179,609
|
||||||||||||
|
||||||||||||||||
Operating income
|
43,586
|
32,728
|
117,622
|
95,239
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
(9,086
|
)
|
19,334
|
7,602
|
43,766
|
|||||||||||
Interest and dividend income
|
1,084
|
1,134
|
3,557
|
4,986
|
||||||||||||
Interest expense
|
(1,987
|
)
|
(2,164
|
)
|
(6,000
|
)
|
(8,448
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
(313
|
)
|
(134
|
)
|
(5,313
|
)
|
|||||||||
Total other income (expense), net
|
(9,989
|
)
|
17,991
|
5,025
|
34,991
|
|||||||||||
Income before income taxes
|
33,597
|
50,719
|
122,647
|
130,230
|
||||||||||||
Income tax provision
|
13,045
|
17,515
|
44,796
|
46,434
|
||||||||||||
Net income
|
20,552
|
33,204
|
77,851
|
83,796
|
||||||||||||
Net income/(loss) attributable to noncontrolling interests
|
(3,113
|
)
|
106
|
(2,718
|
)
|
260
|
||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
23,665
|
$
|
33,098
|
$
|
80,569
|
$
|
83,536
|
||||||||
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||||||||||
Basic
|
$
|
0.94
|
$
|
1.29
|
$
|
3.17
|
$
|
3.25
|
||||||||
|
||||||||||||||||
Diluted
|
$
|
0.93
|
$
|
1.29
|
$
|
3.15
|
$
|
3.25
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
25,296
|
25,625
|
25,385
|
25,682
|
||||||||||||
|
||||||||||||||||
Diluted
|
25,517
|
25,700
|
25,595
|
25,717
|
||||||||||||
|
||||||||||||||||
Dividends declared:
|
$
|
0.06
|
$
|
0.06
|
$
|
0.18
|
$
|
0.16
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net income
|
$
|
20,552
|
$
|
33,204
|
$
|
77,851
|
$
|
83,796
|
||||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||||||
Foreign currency translation
|
(45
|
)
|
49
|
(15
|
)
|
1
|
||||||||||
Net unrealized gains/(losses) on securities available for sale (a)
|
(2,407
|
)
|
(2,170
|
)
|
(6,832
|
)
|
(3,030
|
)
|
||||||||
Other comprehensive income/(loss)
|
(2,452
|
)
|
(2,121
|
)
|
(6,847
|
)
|
(3,029
|
)
|
||||||||
Comprehensive income
|
18,100
|
31,083
|
71,004
|
80,767
|
||||||||||||
Less: Comprehensive loss/(income) attributable to noncontrolling interests
|
3,113
|
(106
|
)
|
2,718
|
(260
|
)
|
||||||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
21,213
|
$
|
30,977
|
$
|
73,722
|
$
|
80,507
|
|
September 30,
|
December 31,
|
September 30,
|
|||||||||
2014
|
2013
|
2013
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
358,421
|
$
|
210,451
|
$
|
245,411
|
||||||
Investments in securities
|
254,630
|
231,228
|
237,744
|
|||||||||
Investments in sponsored registered investment companies
|
39,520
|
44,042
|
43,688
|
|||||||||
Investments in partnerships
|
107,434
|
95,992
|
97,752
|
|||||||||
Receivable from brokers
|
79,885
|
49,461
|
43,854
|
|||||||||
Investment advisory fees receivable
|
31,155
|
51,506
|
31,151
|
|||||||||
Income tax receivable
|
2,433
|
445
|
433
|
|||||||||
Other assets
|
25,282
|
26,360
|
34,589
|
|||||||||
Total assets
|
$
|
898,760
|
$
|
709,485
|
$
|
734,622
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$
|
46,790
|
$
|
10,765
|
$
|
14,675
|
||||||
Income taxes payable and deferred tax liabilities
|
27,412
|
39,846
|
28,726
|
|||||||||
Capital lease obligation
|
5,272
|
5,323
|
5,331
|
|||||||||
Compensation payable
|
93,535
|
34,663
|
86,174
|
|||||||||
Securities sold, not yet purchased
|
14,180
|
6,178
|
7,725
|
|||||||||
Mandatorily redeemable noncontrolling interests
|
1,304
|
1,355
|
1,327
|
|||||||||
Accrued expenses and other liabilities
|
31,007
|
32,511
|
28,906
|
|||||||||
Sub-total
|
219,500
|
130,641
|
172,864
|
|||||||||
|
||||||||||||
5.5% Senior notes (repaid May 15, 2013)
|
-
|
0
|
0
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000
|
100,000
|
100,000
|
|||||||||
Zero coupon subordinated debentures, Face value: $13.1 million at September 30, 2014, $13.8
|
||||||||||||
million at December 31, 2013 and $20.5 million at September 30, 2013 (due December 31, 2015)
|
11,941
|
11,911
|
17,347
|
|||||||||
Total liabilities
|
331,441
|
242,552
|
290,211
|
|||||||||
|
||||||||||||
Redeemable noncontrolling interests
|
56,086
|
6,751
|
5,765
|
|||||||||
Commitments and contingencies (Note J)
|
||||||||||||
Equity
|
||||||||||||
GAMCO Investors, Inc. stockholders' equity
|
||||||||||||
Preferred stock, $.001 par value; 10,000,000 shares authorized;
|
||||||||||||
none issued and outstanding
|
||||||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
15,230,433, 15,012,719 and 14,833,469 issued, respectively; 6,599,982,
|
||||||||||||
6,701,930 and 6,592,649 outstanding, respectively
|
14
|
14
|
14
|
|||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
24,000,000 shares issued; 19,279,260, 19,384,174 and 19,424,174 shares
|
||||||||||||
outstanding, respectively
|
19
|
19
|
19
|
|||||||||
Additional paid-in capital
|
289,664
|
282,496
|
281,194
|
|||||||||
Retained earnings
|
582,357
|
506,441
|
487,702
|
|||||||||
Accumulated other comprehensive income
|
23,392
|
30,239
|
23,271
|
|||||||||
Treasury stock, at cost (8,630,451, 8,310,789 and 8,240,820 shares, respectively)
|
(386,952
|
)
|
(361,878
|
)
|
(356,343
|
)
|
||||||
Total GAMCO Investors, Inc. stockholders' equity
|
508,494
|
457,331
|
435,857
|
|||||||||
Noncontrolling interests
|
2,739
|
2,851
|
2,789
|
|||||||||
Total equity
|
511,233
|
460,182
|
438,646
|
|||||||||
|
||||||||||||
Total liabilities and equity
|
$
|
898,760
|
$
|
709,485
|
$
|
734,622
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
Other
|
Redeemable
|
||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2013
|
$
|
2,851
|
$
|
33
|
$
|
282,496
|
$
|
506,441
|
$
|
30,239
|
$
|
(361,878
|
)
|
$
|
460,182
|
$
|
6,751
|
|||||||||||||||
Redemptions of
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,666
|
)
|
|||||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
53,607
|
||||||||||||||||||||||||
Net income (loss)
|
(112
|
)
|
-
|
-
|
80,569
|
-
|
-
|
80,457
|
(2,606
|
)
|
||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($1,393)
|
-
|
-
|
-
|
-
|
(2,371
|
)
|
-
|
(2,371
|
)
|
-
|
||||||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($2,620)
|
-
|
-
|
-
|
-
|
(4,461
|
)
|
-
|
(4,461
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(15
|
)
|
-
|
(15
|
)
|
-
|
||||||||||||||||||||||
Dividends declared ($0.18 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(4,653
|
)
|
-
|
-
|
(4,653
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
5,182
|
-
|
-
|
-
|
5,182
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit ($349)
|
-
|
-
|
1,986
|
-
|
-
|
-
|
1,986
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(25,074
|
)
|
(25,074
|
)
|
-
|
||||||||||||||||||||||
Balance at September 30, 2014
|
$
|
2,739
|
$
|
33
|
$
|
289,664
|
$
|
582,357
|
$
|
23,392
|
$
|
(386,952
|
)
|
$
|
511,233
|
$
|
56,086
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||||||||||
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Other
|
Redeemable
|
||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
3,326
|
$
|
33
|
$
|
280,089
|
$
|
408,295
|
$
|
26,300
|
$
|
(347,109
|
)
|
$
|
370,934
|
$
|
17,362
|
|||||||||||||||
Redemptions of noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
(524
|
)
|
-
|
-
|
-
|
-
|
-
|
(524
|
)
|
(15,356
|
)
|
|||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,486
|
||||||||||||||||||||||||
Net income (loss)
|
(13
|
)
|
-
|
-
|
83,536
|
-
|
-
|
83,523
|
273
|
|||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax ($5,479)
|
-
|
-
|
-
|
-
|
9,331
|
-
|
9,331
|
-
|
||||||||||||||||||||||||
Amount reclassed from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($7,259)
|
-
|
-
|
-
|
-
|
(12,361
|
)
|
-
|
(12,361
|
)
|
-
|
||||||||||||||||||||||
Income tax effect of transaction | ||||||||||||||||||||||||||||||||
with shareholders
|
-
|
-
|
243
|
-
|
-
|
-
|
243
|
-
|
||||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
-
|
||||||||||||||||||||||||
Dividends declared ($0.16 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(4,129
|
)
|
-
|
-
|
(4,129
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
770
|
-
|
-
|
-
|
770
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit
|
-
|
-
|
92
|
-
|
-
|
-
|
92
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(9,234
|
)
|
(9,234
|
)
|
-
|
||||||||||||||||||||||
Balance at September 30, 2013
|
$
|
2,789
|
$
|
33
|
$
|
281,194
|
$
|
487,702
|
$
|
23,271
|
$
|
(356,343
|
)
|
$
|
438,646
|
$
|
5,765
|
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
|
2014
|
2013
|
||||||
Operating activities
|
||||||||
Net income
|
$
|
77,851
|
$
|
83,796
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Equity in net gains from partnerships
|
(572
|
)
|
(1,211
|
)
|
||||
Depreciation and amortization
|
507
|
605
|
||||||
Stock based compensation expense
|
5,182
|
770
|
||||||
Deferred income taxes
|
(3,472
|
)
|
1,495
|
|||||
Tax benefit from exercise of stock options
|
349
|
16
|
||||||
Foreign currency translation gain/(loss)
|
(15
|
)
|
1
|
|||||
Other-than-temporary loss on available for sale securities
|
69
|
14
|
||||||
Cost basis of donated securities
|
1,502
|
1,880
|
||||||
Gains on sales of available for sale securities
|
(3,511
|
)
|
(16,191
|
)
|
||||
Accretion of zero coupon debentures
|
661
|
964
|
||||||
Loss on extinguishment of debt
|
84
|
137
|
||||||
(Increase) decrease in assets:
|
||||||||
Investments in trading securities
|
(22,376
|
)
|
(11,730
|
)
|
||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(15,698
|
)
|
(10,124
|
)
|
||||
Distributions from partnerships
|
4,828
|
11,134
|
||||||
Receivable from brokers
|
(30,424
|
)
|
6,801
|
|||||
Investment advisory fees receivable
|
20,351
|
11,278
|
||||||
Income tax receivable and deferred tax assets
|
(1,988
|
)
|
584
|
|||||
Other assets
|
563
|
(7,436
|
)
|
|||||
Increase (decrease) in liabilities:
|
||||||||
Payable to brokers
|
36,026
|
329
|
||||||
Income taxes payable and deferred tax liabilities
|
(4,950
|
)
|
3,613
|
|||||
Compensation payable
|
58,873
|
75,639
|
||||||
Mandatorily redeemable noncontrolling interests
|
(51
|
)
|
(15
|
)
|
||||
Accrued expenses and other liabilities
|
(1,639
|
)
|
3,144
|
|||||
Total adjustments
|
44,299
|
71,697
|
||||||
Net cash provided by operating activities
|
$
|
122,150
|
$
|
155,493
|
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
|
2014
|
2013
|
||||||
Investing activities
|
||||||||
Purchases of available for sale securities
|
$
|
(6,252
|
)
|
$
|
(8,427
|
)
|
||
Proceeds from sales of available for sale securities
|
8,018
|
32,422
|
||||||
Return of capital on available for sale securities
|
827
|
1,094
|
||||||
Net cash provided by investing activities
|
2,593
|
25,089
|
||||||
|
||||||||
Financing activities
|
||||||||
Contributions from redeemable noncontrolling interests
|
53,607
|
3,486
|
||||||
Redemptions of redeemable noncontrolling interests
|
(1,666
|
)
|
(15,356
|
)
|
||||
Redemption of 5.5% Senior Notes
|
-
|
(99,000
|
)
|
|||||
Redemptions of noncontrolling interests
|
-
|
(524
|
)
|
|||||
Proceeds from exercise of stock options
|
1,637
|
76
|
||||||
Dividends paid
|
(4,567
|
)
|
(4,108
|
)
|
||||
Repurchase of zero coupon subordinated debentures
|
(715
|
)
|
(1,119
|
)
|
||||
Purchase of treasury stock
|
(25,074
|
)
|
(9,234
|
)
|
||||
Net cash provided by/(used in) financing activities
|
23,222
|
(125,779
|
)
|
|||||
Effect of exchange rates on cash and cash equivalents
|
5
|
-
|
||||||
Net increase in cash and cash equivalents
|
147,970
|
54,803
|
||||||
Cash and cash equivalents at beginning of period
|
210,451
|
190,608
|
||||||
Cash and cash equivalents at end of period
|
$
|
358,421
|
$
|
245,411
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
3,847
|
$
|
6,607
|
||||
Cash paid for taxes
|
$
|
52,956
|
$
|
40,500
|
||||
|
||||||||
Non-cash activity:
|
||||||||
- For the nine months ended September 30, 2014 and September 30, 2013, the Company accrued dividends on restricted stock awards of $86 and $21, respectively.
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Government obligations
|
$
|
20,995
|
$
|
20,999
|
$
|
37,986
|
$
|
37,994
|
$
|
20,993
|
$
|
21,000
|
||||||||||||
Common stocks
|
167,714
|
190,939
|
96,225
|
124,634
|
143,731
|
166,443
|
||||||||||||||||||
Mutual funds
|
2,416
|
3,373
|
21,074
|
23,285
|
11,073
|
12,010
|
||||||||||||||||||
Other investments
|
753
|
1,550
|
287
|
582
|
406
|
419
|
||||||||||||||||||
Total trading securities
|
191,878
|
216,861
|
155,572
|
186,495
|
176,203
|
199,872
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Common stocks
|
14,228
|
36,380
|
13,389
|
43,046
|
16,372
|
36,297
|
||||||||||||||||||
Mutual funds
|
681
|
1,389
|
843
|
1,687
|
843
|
1,575
|
||||||||||||||||||
Total available for sale securities
|
14,909
|
37,769
|
14,232
|
44,733
|
17,215
|
37,872
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in securities
|
$
|
206,787
|
$
|
254,630
|
$
|
169,804
|
$
|
231,228
|
$
|
193,418
|
$
|
237,744
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
||||||||||||||||||
Trading securities:
|
(In thousands)
|
|||||||||||||||||||||||
Common stocks
|
$
|
11,699
|
$
|
13,514
|
$
|
5,319
|
$
|
6,023
|
$
|
6,411
|
$
|
7,003
|
||||||||||||
Other investments
|
71
|
666
|
-
|
155
|
526
|
722
|
||||||||||||||||||
Total securities sold, not yet purchased
|
$
|
11,770
|
$
|
14,180
|
$
|
5,319
|
$
|
6,178
|
$
|
6,937
|
$
|
7,725
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Mutual funds
|
$
|
1
|
$
|
1
|
$
|
19
|
$
|
10
|
$
|
19
|
$
|
12
|
||||||||||||
Total trading securities
|
1
|
1
|
19
|
10
|
19
|
12
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Closed-end funds
|
21,819
|
36,142
|
23,100
|
40,624
|
23,850
|
40,272
|
||||||||||||||||||
Mutual funds
|
1,922
|
3,377
|
1,951
|
3,408
|
2,031
|
3,404
|
||||||||||||||||||
Total available for sale securities
|
23,741
|
39,519
|
25,051
|
44,032
|
25,881
|
43,676
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in sponsored
|
||||||||||||||||||||||||
registered investment companies
|
$
|
23,742
|
$
|
39,520
|
$
|
25,070
|
$
|
44,042
|
$
|
25,900
|
$
|
43,688
|
Amount
|
Affected Line Items
|
Reason for
|
|||||||
Reclassified
|
in the Statements
|
Reclassification
|
|||||||
from AOCI
|
Of Income
|
from AOCI
|
|||||||
Three months ended September 30,
|
|
|
|||||||
2014
|
2013
|
||||||||
$
|
348
|
$
|
5,745
|
Net gain/(loss) from investments
|
Realized gain on sale of AFS securities
|
||||
-
|
3,112
|
Other operating expenses/net gain from investments
|
Realized gain on donation of AFS securities
|
||||||
348
|
8,857
|
Income before income taxes
|
|
||||||
(129
|
)
|
(3,277
|
)
|
Income tax provision
|
|
||||
$
|
219
|
$
|
5,580
|
Net income
|
|
||||
Amount
|
Affected Line Items
|
Reason for
|
|||||||
Reclassified
|
in the Statements
|
Reclassification
|
|||||||
from AOCI
|
Of Income
|
from AOCI
|
|||||||
Nine months ended September 30,
|
|||||||||
2014
|
2013
|
||||||||
$
|
3,511
|
$
|
16,191
|
Net gain/(loss) from investments
|
Realized gain on sale of AFS securities
|
||||
3,639
|
3,443
|
Other operating expenses/net gain from investments
|
Realized gain on donation of AFS securities
|
||||||
(69
|
)
|
(14
|
)
|
Net gain/(loss) from investments
|
OTT impairment of AFS securities
|
||||
7,081
|
19,620
|
Income before income taxes
|
|||||||
(2,620
|
)
|
(7,259
|
)
|
Income tax provision
|
|||||
$
|
4,461
|
$
|
12,361
|
Net income
|
Gross Amounts Not Offset in the
|
||||||||||||||||||||||||
Statements of Financial Condition
|
||||||||||||||||||||||||
Gross
|
Gross Amounts
|
Net Amounts of
|
||||||||||||||||||||||
Amounts of
|
Offset in the
|
Assets Presented
|
||||||||||||||||||||||
Recognized
|
Statements of
|
in the Statements of
|
Financial
|
Cash Collateral
|
||||||||||||||||||||
Assets
|
Financial Condition
|
Financial Condition
|
Instruments
|
Received
|
Net Amount
|
|||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
September 30, 2014
|
$
|
800
|
$
|
-
|
$
|
800
|
$
|
(657
|
)
|
$
|
-
|
$
|
143
|
|||||||||||
December 31, 2013
|
275
|
-
|
275
|
(155
|
)
|
-
|
120
|
|||||||||||||||||
September 30, 2013
|
$
|
101
|
$
|
-
|
$
|
101
|
$
|
(101
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
Gross Amounts Not Offset in the
|
||||||||||||||||||||||||
Statements of Financial Condition
|
||||||||||||||||||||||||
Gross
|
Gross Amounts
|
Net Amounts of
|
||||||||||||||||||||||
Amounts of
|
Offset in the
|
Liabilities Presented
|
||||||||||||||||||||||
Recognized
|
Statements of
|
in the Statements of
|
Financial
|
Cash Collateral
|
||||||||||||||||||||
Liabilities
|
Financial Condition
|
Financial Condition
|
Instruments
|
Pledged
|
Net Amount
|
|||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
September 30, 2014
|
$
|
657
|
$
|
-
|
$
|
657
|
$
|
(657
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
December 31, 2013
|
155
|
-
|
155
|
(155
|
)
|
-
|
-
|
|||||||||||||||||
September 30, 2013
|
$
|
135
|
$
|
-
|
$
|
135
|
$
|
(101
|
)
|
$
|
-
|
$
|
34
|
|
September 30, 2014
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
14,228
|
$
|
22,152
|
$
|
-
|
$
|
36,380
|
||||||||
Closed-end Funds
|
21,819
|
14,325
|
(2
|
)
|
36,142
|
|||||||||||
Mutual funds
|
2,603
|
2,163
|
-
|
4,766
|
||||||||||||
Total available for sale securities
|
$
|
38,650
|
$
|
38,640
|
$
|
(2
|
)
|
$
|
77,288
|
|
December 31, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
13,389
|
$
|
29,657
|
$
|
-
|
$
|
43,046
|
||||||||
Closed-end Funds
|
23,100
|
17,654
|
(130
|
)
|
40,624
|
|||||||||||
Mutual funds
|
2,794
|
2,325
|
(24
|
)
|
5,095
|
|||||||||||
Total available for sale securities
|
$
|
39,283
|
$
|
49,636
|
$
|
(154
|
)
|
$
|
88,765
|
|
September 30, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
16,372
|
$
|
19,925
|
$
|
-
|
$
|
36,297
|
||||||||
Closed-end Funds
|
23,850
|
16,545
|
(123
|
)
|
40,272
|
|||||||||||
Mutual funds
|
2,874
|
2,141
|
(36
|
)
|
4,979
|
|||||||||||
Total available for sale securities
|
$
|
43,096
|
$
|
38,611
|
$
|
(159
|
)
|
$
|
81,548
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
|||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Cosed-end funds
|
$
|
79
|
$
|
(2
|
)
|
$
|
77
|
$
|
912
|
$
|
(130
|
)
|
$
|
782
|
$
|
941
|
$
|
(123
|
)
|
$
|
818
|
|||||||||||||||
Mutual Funds
|
-
|
-
|
-
|
303
|
(24
|
)
|
279
|
365
|
(36
|
)
|
329
|
|||||||||||||||||||||||||
Total
|
$
|
79
|
$
|
(2
|
)
|
$
|
77
|
$
|
1,215
|
$
|
(154
|
)
|
$
|
1,061
|
$
|
1,306
|
$
|
(159
|
)
|
$
|
1,147
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
September 30,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2014
|
||||||||||||
Cash equivalents
|
$
|
358,210
|
$
|
-
|
$
|
-
|
$
|
358,210
|
||||||||
Investments in partnerships
|
-
|
24,094
|
-
|
24,094
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
36,380
|
-
|
-
|
36,380
|
||||||||||||
AFS - Mutual funds
|
1,389
|
-
|
-
|
1,389
|
||||||||||||
Trading - Gov't obligations
|
20,999
|
-
|
-
|
20,999
|
||||||||||||
Trading - Common stocks
|
190,215
|
-
|
724
|
190,939
|
||||||||||||
Trading - Mutual funds
|
3,373
|
-
|
-
|
3,373
|
||||||||||||
Trading - Other
|
453
|
803
|
294
|
1,550
|
||||||||||||
Total investments in securities
|
252,809
|
803
|
1,018
|
254,630
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
36,142
|
-
|
-
|
36,142
|
||||||||||||
AFS - Mutual Funds
|
3,377
|
-
|
-
|
3,377
|
||||||||||||
Trading - Mutual funds
|
1
|
-
|
-
|
1
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
39,520
|
-
|
-
|
39,520
|
||||||||||||
Total investments
|
292,329
|
24,897
|
1,018
|
318,244
|
||||||||||||
Total assets at fair value
|
$
|
650,539
|
$
|
24,897
|
$
|
1,018
|
$
|
676,454
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
13,514
|
$
|
-
|
$
|
-
|
$
|
13,514
|
||||||||
Trading - Other
|
-
|
666
|
-
|
666
|
||||||||||||
Securities sold, not yet purchased
|
$
|
13,514
|
$
|
666
|
$
|
-
|
$
|
14,180
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
December 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2013
|
||||||||||||
Cash equivalents
|
$
|
209,913
|
$
|
-
|
$
|
-
|
$
|
209,913
|
||||||||
Investments in partnerships
|
-
|
25,253
|
-
|
25,253
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
43,046
|
-
|
-
|
43,046
|
||||||||||||
AFS - Mutual funds
|
1,687
|
-
|
-
|
1,687
|
||||||||||||
Trading - Gov't obligations
|
37,994
|
-
|
-
|
37,994
|
||||||||||||
Trading - Common stocks
|
123,927
|
7
|
700
|
124,634
|
||||||||||||
Trading - Mutual funds
|
23,285
|
-
|
-
|
23,285
|
||||||||||||
Trading - Other
|
23
|
275
|
284
|
582
|
||||||||||||
Total investments in securities
|
229,962
|
282
|
984
|
231,228
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
40,624
|
-
|
-
|
40,624
|
||||||||||||
AFS - Mutual Funds
|
3,408
|
-
|
-
|
3,408
|
||||||||||||
Trading - Mutual funds
|
10
|
-
|
-
|
10
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
44,042
|
-
|
-
|
44,042
|
||||||||||||
Total investments
|
274,004
|
25,535
|
984
|
300,523
|
||||||||||||
Total assets at fair value
|
$
|
483,917
|
$
|
25,535
|
$
|
984
|
$
|
510,436
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
6,023
|
$
|
-
|
$
|
-
|
$
|
6,023
|
||||||||
Trading - Other
|
-
|
155
|
-
|
155
|
||||||||||||
Securities sold, not yet purchased
|
$
|
6,023
|
$
|
155
|
$
|
-
|
$
|
6,178
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
September 30,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2013
|
||||||||||||
Cash equivalents
|
$
|
244,144
|
$
|
-
|
$
|
-
|
$
|
244,144
|
||||||||
Investments in partnerships
|
-
|
23,146
|
-
|
23,146
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
36,297
|
-
|
-
|
36,297
|
||||||||||||
AFS - Mutual funds
|
1,575
|
-
|
-
|
1,575
|
||||||||||||
Trading - Gov't obligations
|
21,000
|
-
|
-
|
21,000
|
||||||||||||
Trading - Common stocks
|
165,776
|
-
|
667
|
166,443
|
||||||||||||
Trading - Mutual funds
|
12,010
|
-
|
-
|
12,010
|
||||||||||||
Trading - Other
|
32
|
104
|
283
|
419
|
||||||||||||
Total investments in securities
|
236,690
|
104
|
950
|
237,744
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
40,272
|
-
|
-
|
40,272
|
||||||||||||
AFS - Mutual Funds
|
3,404
|
-
|
-
|
3,404
|
||||||||||||
Trading - Mutual funds
|
12
|
-
|
-
|
12
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
43,688
|
-
|
-
|
43,688
|
||||||||||||
Total investments
|
280,378
|
23,250
|
950
|
304,578
|
||||||||||||
Total assets at fair value
|
$
|
524,522
|
$
|
23,250
|
$
|
950
|
$
|
548,722
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
7,003
|
$
|
-
|
$
|
-
|
$
|
7,003
|
||||||||
Trading - Other
|
-
|
722
|
-
|
722
|
||||||||||||
Securities sold, not yet purchased
|
$
|
7,003
|
$
|
722
|
$
|
-
|
$
|
7,725
|
Total
|
||||||||||||||||||||||||||||||||||||
Unrealized
|
||||||||||||||||||||||||||||||||||||
Gains or
|
Total
|
|||||||||||||||||||||||||||||||||||
Total Realized and
|
(Losses)
|
Realized
|
||||||||||||||||||||||||||||||||||
June
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
||||||||||||||||||||||||||||||||
|
30, 2014 |
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
|||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
716
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
724
|
||||||||||||||||||
Trading - Other
|
294
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
294
|
|||||||||||||||||||||||||||
Total
|
$
|
1,010
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
8
|
-
|
$
|
-
|
$
|
-
|
$
|
1,018
|
Total
|
||||||||||||||||||||||||||||||||||||
Unrealized
|
||||||||||||||||||||||||||||||||||||
Gains or
|
Total
|
|||||||||||||||||||||||||||||||||||
Total Realized and
|
(Losses)
|
Realized
|
||||||||||||||||||||||||||||||||||
June
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
||||||||||||||||||||||||||||||||
|
30, 2013 |
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
|||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
669
|
$
|
(2
|
)
|
$
|
-
|
$
|
-
|
$
|
(2
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
667
|
||||||||||||||||
Trading - Other
|
284
|
(1
|
)
|
-
|
-
|
(1
|
)
|
-
|
-
|
-
|
283
|
|||||||||||||||||||||||||
Total
|
$
|
953
|
$
|
(3
|
)
|
$
|
-
|
$
|
-
|
$
|
(3
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
950
|
Total
|
||||||||||||||||||||||||||||||||||||
Unrealized
|
||||||||||||||||||||||||||||||||||||
Gains or
|
Total
|
|||||||||||||||||||||||||||||||||||
Total Realized and
|
(Losses)
|
Realized
|
||||||||||||||||||||||||||||||||||
December
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
||||||||||||||||||||||||||||||||
|
31, 2013 |
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
|||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
700
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
724
|
||||||||||||||||||
Trading - Other
|
284
|
-
|
-
|
-
|
-
|
10
|
-
|
-
|
294
|
|||||||||||||||||||||||||||
Total
|
$
|
984
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
24
|
10
|
$
|
-
|
$
|
-
|
$
|
1,018
|
Total
|
||||||||||||||||||||||||||||||||||||
Unrealized
|
||||||||||||||||||||||||||||||||||||
Gains or
|
Total
|
|||||||||||||||||||||||||||||||||||
Total Realized and
|
(Losses)
|
Realized
|
||||||||||||||||||||||||||||||||||
December
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
||||||||||||||||||||||||||||||||
|
31, 2012 |
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
|||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
675
|
$
|
(8
|
)
|
$
|
-
|
$
|
-
|
$
|
(8
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
667
|
||||||||||||||||
Trading - Other
|
362
|
(3
|
)
|
-
|
-
|
(3
|
)
|
3
|
(79
|
)
|
-
|
283
|
||||||||||||||||||||||||
Total
|
$
|
1,037
|
$
|
(11
|
)
|
$
|
-
|
$
|
-
|
$
|
(11
|
)
|
$
|
3
|
$
|
(79
|
)
|
$
|
-
|
$
|
950
|
|
CFFs
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||||||||||||
|
VIEs
|
VOEs
|
VIEs
|
VOEs
|
VIEs
|
VOEs
|
VIEs
|
VOEs
|
||||||||||||||||||||||||
Entities consolidated at December 31, 2012
|
1
|
2
|
-
|
1
|
-
|
1
|
1
|
4
|
||||||||||||||||||||||||
Additional consolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Deconsolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Entities consolidated at September 30, 2013
|
1
|
2
|
-
|
1
|
-
|
1
|
1
|
4
|
||||||||||||||||||||||||
Additional consolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Deconsolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Entities consolidated at December 31, 2013
|
1
|
2
|
-
|
1
|
-
|
1
|
1
|
4
|
||||||||||||||||||||||||
Additional consolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Deconsolidated entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Entities consolidated at September 30, 2014
|
1
|
2
|
-
|
1
|
-
|
1
|
1
|
4
|
September 30, 2014
|
||||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
24,094
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,094
|
||||||||||||
Equity Method
|
-
|
34,967
|
34,185
|
6,611
|
7,577
|
83,340
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
24,094
|
$
|
34,967
|
$
|
34,185
|
$
|
6,611
|
$
|
7,577
|
$
|
107,434
|
December 31, 2013
|
||||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
25,253
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
25,253
|
||||||||||||
Equity Method
|
-
|
21,669
|
35,030
|
6,509
|
7,531
|
70,739
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
25,253
|
$
|
21,669
|
$
|
35,030
|
$
|
6,509
|
$
|
7,531
|
$
|
95,992
|
September 30, 2013
|
||||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
23,146
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,146
|
||||||||||||
Equity Method
|
-
|
26,717
|
34,460
|
6,080
|
7,349
|
74,606
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
23,146
|
$
|
26,717
|
$
|
34,460
|
$
|
6,080
|
$
|
7,349
|
$
|
97,752
|
|
September 30, 2014
|
|||||||||||||||||||
Prior to
|
Offshore
|
|||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
358,316
|
$
|
7
|
$
|
98
|
$
|
-
|
$
|
358,421
|
||||||||||
Investments in securities
|
203,280
|
-
|
8,836
|
42,514
|
254,630
|
|||||||||||||||
Investments in sponsored investment companies
|
39,520
|
-
|
-
|
-
|
39,520
|
|||||||||||||||
Investments in partnerships
|
110,679
|
4,684
|
(7,929
|
)
|
-
|
107,434
|
||||||||||||||
Receivable from brokers
|
31,388
|
-
|
306
|
48,191
|
79,885
|
|||||||||||||||
Investment advisory fees receivable
|
31,221
|
17
|
(1
|
)
|
(82
|
)
|
31,155
|
|||||||||||||
Other assets
|
28,528
|
24
|
(1,000
|
)
|
163
|
27,715
|
||||||||||||||
Total assets
|
$
|
802,932
|
$
|
4,732
|
$
|
310
|
$
|
90,786
|
$
|
898,760
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
13,549
|
$
|
-
|
$
|
-
|
$
|
631
|
$
|
14,180
|
||||||||||
Accrued expenses and other liabilities
|
166,209
|
71
|
31
|
39,009
|
205,320
|
|||||||||||||||
Total debt
|
111,941
|
-
|
-
|
-
|
111,941
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
4,661
|
279
|
51,146
|
56,086
|
|||||||||||||||
Total equity
|
511,233
|
-
|
-
|
-
|
511,233
|
|||||||||||||||
Total liabilities and equity
|
$
|
802,932
|
$
|
4,732
|
$
|
310
|
$
|
90,786
|
$
|
898,760
|
|
December 31, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
209,667
|
$
|
450
|
$
|
334
|
$
|
-
|
$
|
210,451
|
||||||||||
Investments in securities
|
232,211
|
-
|
7,464
|
(8,447
|
)
|
231,228
|
||||||||||||||
Investments in sponsored investment companies
|
44,033
|
-
|
9
|
-
|
44,042
|
|||||||||||||||
Investments in partnerships
|
98,494
|
6,517
|
(9,019
|
)
|
-
|
95,992
|
||||||||||||||
Receivable from brokers
|
35,151
|
-
|
-
|
14,310
|
49,461
|
|||||||||||||||
Investment advisory fees receivable
|
52,509
|
(24
|
)
|
(14
|
)
|
(965
|
)
|
51,506
|
||||||||||||
Other assets
|
27,433
|
(2,339
|
)
|
1,592
|
119
|
26,805
|
||||||||||||||
Total assets
|
$
|
699,498
|
$
|
4,604
|
$
|
366
|
$
|
5,017
|
$
|
709,485
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
6,049
|
$
|
-
|
$
|
-
|
$
|
129
|
$
|
6,178
|
||||||||||
Accrued expenses and other liabilities
|
121,356
|
165
|
29
|
2,913
|
124,463
|
|||||||||||||||
Total debt
|
111,911
|
-
|
-
|
-
|
111,911
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
4,439
|
337
|
1,975
|
6,751
|
|||||||||||||||
Total equity
|
460,182
|
-
|
-
|
-
|
460,182
|
|||||||||||||||
Total liabilities and equity
|
$
|
699,498
|
$
|
4,604
|
$
|
366
|
$
|
5,017
|
$
|
709,485
|
|
September 30, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
243,995
|
$
|
1,082
|
$
|
334
|
$
|
-
|
$
|
245,411
|
||||||||||
Investments in securities
|
240,113
|
-
|
7,400
|
(9,769
|
)
|
237,744
|
||||||||||||||
Investments in sponsored investment companies
|
43,677
|
-
|
11
|
-
|
43,688
|
|||||||||||||||
Investments in partnerships
|
104,010
|
3,253
|
(9,511
|
)
|
-
|
97,752
|
||||||||||||||
Receivable from brokers
|
26,981
|
-
|
2,115
|
14,758
|
43,854
|
|||||||||||||||
Investment advisory fees receivable
|
31,241
|
(8
|
)
|
(1
|
)
|
(81
|
)
|
31,151
|
||||||||||||
Other assets
|
34,947
|
-
|
-
|
75
|
35,022
|
|||||||||||||||
Total assets
|
$
|
724,964
|
$
|
4,327
|
$
|
348
|
$
|
4,983
|
$
|
734,622
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
7,577
|
$
|
-
|
$
|
-
|
$
|
148
|
$
|
7,725
|
||||||||||
Accrued expenses and other liabilities
|
161,394
|
1,146
|
32
|
2,567
|
165,139
|
|||||||||||||||
Total debt
|
117,347
|
-
|
-
|
-
|
117,347
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
3,181
|
316
|
2,268
|
5,765
|
|||||||||||||||
Total equity
|
438,646
|
-
|
-
|
-
|
438,646
|
|||||||||||||||
Total liabilities and equity
|
$
|
724,964
|
$
|
4,327
|
$
|
348
|
$
|
4,983
|
$
|
734,622
|
|
Three Months Ended September 30, 2014
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Total revenues
|
$
|
111,073
|
$
|
(7
|
)
|
$
|
-
|
$
|
(208
|
)
|
$
|
110,858
|
||||||||
Total expenses
|
66,980
|
20
|
12
|
260
|
67,272
|
|||||||||||||||
Operating income
|
44,093
|
(27
|
)
|
(12
|
)
|
(468
|
)
|
43,586
|
||||||||||||
Total other income/(expense), net
|
(7,462
|
)
|
(186
|
)
|
(18
|
)
|
(2,323
|
)
|
(9,989
|
)
|
||||||||||
Income before income taxes
|
36,631
|
(213
|
)
|
(30
|
)
|
(2,791
|
)
|
33,597
|
||||||||||||
Income tax provision
|
13,045
|
-
|
-
|
-
|
13,045
|
|||||||||||||||
Net income
|
23,586
|
(213
|
)
|
(30
|
)
|
(2,791
|
)
|
20,552
|
||||||||||||
Net loss attributable to noncontrolling interests
|
(79
|
)
|
(213
|
)
|
(30
|
)
|
(2,791
|
)
|
(3,113
|
)
|
||||||||||
Net income attributable to GAMCO
|
$
|
23,665
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,665
|
|
Three Months Ended September 30, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Total revenues
|
$
|
96,620
|
$
|
(8
|
)
|
$
|
(1
|
)
|
$
|
(234
|
)
|
$
|
96,377
|
|||||||
Total expenses
|
63,400
|
46
|
11
|
192
|
63,649
|
|||||||||||||||
Operating income
|
33,220
|
(54
|
)
|
(12
|
)
|
(426
|
)
|
32,728
|
||||||||||||
Total other income, net
|
17,404
|
94
|
31
|
462
|
17,991
|
|||||||||||||||
Income before income taxes
|
50,624
|
40
|
19
|
36
|
50,719
|
|||||||||||||||
Income tax provision
|
17,515
|
-
|
-
|
-
|
17,515
|
|||||||||||||||
Net income
|
33,109
|
40
|
19
|
36
|
33,204
|
|||||||||||||||
Net income attributable to noncontrolling interests
|
11
|
40
|
19
|
36
|
106
|
|||||||||||||||
Net income attributable to GAMCO
|
$
|
33,098
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
33,098
|
|
Nine Months Ended September 30, 2014
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Total revenues
|
$
|
324,287
|
$
|
(21
|
)
|
$
|
(2
|
)
|
$
|
(633
|
)
|
$
|
323,631
|
|||||||
Total expenses
|
205,207
|
34
|
38
|
730
|
206,009
|
|||||||||||||||
Operating income
|
119,080
|
(55
|
)
|
(40
|
)
|
(1,363
|
)
|
117,622
|
||||||||||||
Total other income/(expense), net
|
6,172
|
20
|
19
|
(1,186
|
)
|
5,025
|
||||||||||||||
Income before income taxes
|
125,252
|
(35
|
)
|
(21
|
)
|
(2,549
|
)
|
122,647
|
||||||||||||
Income tax provision
|
44,796
|
-
|
-
|
-
|
44,796
|
|||||||||||||||
Net income
|
80,456
|
(35
|
)
|
(21
|
)
|
(2,549
|
)
|
77,851
|
||||||||||||
Net loss attributable to noncontrolling interests
|
(113
|
)
|
(35
|
)
|
(21
|
)
|
(2,549
|
)
|
(2,718
|
)
|
||||||||||
Net income attributable to GAMCO
|
$
|
80,569
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
80,569
|
|
Nine Months Ended September 30, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
||||||||||||||||
Total revenues
|
$
|
275,689
|
$
|
(20
|
)
|
$
|
(2
|
)
|
$
|
(819
|
)
|
$
|
274,848
|
|||||||
Total expenses
|
178,858
|
134
|
36
|
581
|
179,609
|
|||||||||||||||
Operating income
|
96,831
|
(154
|
)
|
(38
|
)
|
(1,400
|
)
|
95,239
|
||||||||||||
Total other income, net
|
33,125
|
228
|
79
|
1,559
|
34,991
|
|||||||||||||||
Income before income taxes
|
129,956
|
74
|
41
|
159
|
130,230
|
|||||||||||||||
Income tax provision
|
46,434
|
-
|
-
|
-
|
46,434
|
|||||||||||||||
Net income
|
83,522
|
74
|
41
|
159
|
83,796
|
|||||||||||||||
Net income/(loss) attributable to noncontrolling interests
|
(14
|
)
|
74
|
41
|
159
|
260
|
||||||||||||||
Net income attributable to GAMCO
|
$
|
83,536
|
$
|
-
|
$
|
-
|
$
|
0
|
$
|
83,536
|
September 30, | December 31, | September 30, | ||||||||||
|
2014
|
2013
|
2013
|
|||||||||
(In thousands)
|
||||||||||||
Cash and cash equivalents
|
$
|
1
|
$
|
-
|
$
|
1,082
|
||||||
Investments in partnerships
|
13,618
|
15,540
|
13,782
|
|||||||||
Accrued expenses and other liabilities
|
(15
|
)
|
(2,022
|
)
|
(1,088
|
)
|
||||||
Redeemable noncontrolling interests
|
(962
|
)
|
(1,120
|
)
|
-
|
|||||||
GAMCO's net interests in consolidated VIE
|
$
|
12,642
|
$
|
12,398
|
$
|
13,776
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
(in thousands, except per share amounts)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Basic:
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
23,665
|
$
|
33,098
|
$
|
80,569
|
$
|
83,536
|
||||||||
Weighted average shares outstanding
|
25,296
|
25,625
|
25,385
|
25,682
|
||||||||||||
Basic net income attributable to GAMCO Investors, Inc.'s
|
||||||||||||||||
shareholders per share
|
$
|
0.94
|
$
|
1.29
|
$
|
3.17
|
$
|
3.25
|
||||||||
|
||||||||||||||||
Diluted:
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
23,665
|
$
|
33,098
|
$
|
80,569
|
$
|
83,536
|
||||||||
|
||||||||||||||||
Weighted average share outstanding
|
25,296
|
25,625
|
25,385
|
25,682
|
||||||||||||
Dilutive stock options and restricted stock awards
|
221
|
75
|
210
|
35
|
||||||||||||
Total
|
25,517
|
25,700
|
25,595
|
25,717
|
||||||||||||
Diluted net income attributable to GAMCO Investors, Inc.'s
|
||||||||||||||||
shareholders per share
|
$
|
0.93
|
$
|
1.29
|
$
|
3.15
|
$
|
3.25
|
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
|||||||||||||||||||||
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
|||||||||||||||||||
|
Value
|
Level 2
|
Value
|
Level 2
|
Value
|
Level 2
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
5.875% Senior notes
|
$
|
100,000
|
$
|
108,200
|
$
|
100,000
|
$
|
108,500
|
$
|
100,000
|
$
|
108,000
|
||||||||||||
0% Subordinated debentures
|
11,941
|
12,775
|
11,911
|
13,819
|
17,347
|
19,349
|
||||||||||||||||||
Total
|
$
|
111,941
|
$
|
120,975
|
$
|
111,911
|
$
|
122,319
|
$
|
117,347
|
$
|
127,349
|
Payment Date
|
Record Date
|
Amount
|
||||
|
|
|
||||
Three months ended March 31, 2014
|
March 25, 2014
|
March 11, 2014
|
$
|
0.06
|
||
Three months ended June 30, 2014
|
June 24, 2014
|
June 10, 2014
|
$
|
0.06
|
||
Three months ended September 30, 2014
|
September 30, 2014
|
September 16, 2014
|
0.06
|
|||
Nine months ended September 30, 2014
|
$
|
0.18
|
||||
Three months ended March 31, 2013
|
March 26, 2013
|
March 12, 2013
|
$
|
0.05
|
||
Three months ended June 30, 2013
|
June 25, 2013
|
June 11, 2013
|
$
|
0.05
|
||
Three months ended September 30, 2013
|
September 24, 2013
|
September 10, 2013
|
$
|
0.06
|
||
Nine months ended September 30, 2013
|
$
|
0.16
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||
Q1
|
$
|
15
|
$
|
1,700
|
$
|
1,962
|
$
|
1,961
|
$
|
1,171
|
$
|
908
|
||||||||||||||
Q2
|
15
|
1,697
|
1,961
|
1,961
|
1,171
|
908
|
||||||||||||||||||||
Q3
|
741
|
1,785
|
1,961
|
1,607
|
1,040
|
828
|
||||||||||||||||||||
Q4
|
1,301
|
1,965
|
1,961
|
1,346
|
910
|
659
|
||||||||||||||||||||
Full Year
|
$
|
2,072
|
$
|
7,147
|
$
|
7,845
|
$
|
6,875
|
$
|
4,292
|
$
|
3,303
|
||||||||||||||
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
|||||||||||||||||||||
Q1
|
$
|
429
|
$
|
319
|
$
|
227
|
$
|
146
|
$
|
76
|
$
|
12
|
||||||||||||||
Q2
|
429
|
319
|
227
|
146
|
76
|
12
|
||||||||||||||||||||
Q3
|
364
|
264
|
179
|
104
|
38
|
8
|
||||||||||||||||||||
Q4
|
319
|
227
|
146
|
76
|
12
|
-
|
||||||||||||||||||||
Full Year
|
$
|
1,541
|
$
|
1,129
|
$
|
779
|
$
|
472
|
$
|
202
|
$
|
32
|
||||||||||||||
Table I: Fund Flows - 3rd Quarter 2014
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
June 30,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
|||||||||||||||
|
2014
|
(depreciation)
|
flows
|
reinvestments
|
2014
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
18,508
|
$
|
(839
|
)
|
$
|
(175
|
)
|
$
|
(36
|
)
|
$
|
17,458
|
|||||||
Closed-end Funds
|
7,224
|
(326
|
)
|
174
|
(109
|
)
|
6,963
|
|||||||||||||
Institutional & PWM - direct
|
16,941
|
(772
|
)
|
54
|
-
|
16,223
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,883
|
(296
|
)
|
(62
|
)
|
-
|
3,525
|
|||||||||||||
Investment Partnerships
|
897
|
(12
|
)
|
14
|
-
|
899
|
||||||||||||||
SICAV (a)
|
94
|
(4
|
)
|
31
|
-
|
121
|
||||||||||||||
Total Equities
|
47,547
|
(2,249
|
)
|
36
|
(145
|
)
|
45,189
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,766
|
-
|
(68
|
)
|
-
|
1,698
|
||||||||||||||
Institutional & PWM
|
64
|
-
|
(4
|
)
|
-
|
60
|
||||||||||||||
Total Fixed Income
|
1,830
|
-
|
(72
|
)
|
-
|
1,758
|
||||||||||||||
Total Assets Under Management
|
$
|
49,377
|
$
|
(2,249
|
)
|
$
|
(36
|
)
|
$
|
(145
|
)
|
$
|
46,947
|
|||||||
|
Table II: Fund Flows - Nine Months ended September 30, 2014
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
December 31,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
|||||||||||||||
|
2013
|
(depreciation)
|
flows
|
reinvestments
|
2014
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
17,078
|
$
|
158
|
$
|
320
|
$
|
(98
|
)
|
$
|
17,458
|
|||||||||
Closed-end Funds
|
6,945
|
180
|
178
|
(340
|
)
|
6,963
|
||||||||||||||
Institutional & PWM - direct
|
16,486
|
157
|
(420
|
)
|
-
|
16,223
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,797
|
(112
|
)
|
(160
|
)
|
-
|
3,525
|
|||||||||||||
Investment Partnerships
|
811
|
12
|
76
|
-
|
899
|
|||||||||||||||
SICAV (a)
|
96
|
(2
|
)
|
27
|
-
|
121
|
||||||||||||||
Total Equities
|
45,213
|
393
|
21
|
(438
|
)
|
45,189
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,735
|
-
|
(37
|
)
|
-
|
1,698
|
||||||||||||||
Institutional & PWM
|
62
|
-
|
(2
|
)
|
-
|
60
|
||||||||||||||
Total Fixed Income
|
1,797
|
-
|
(39
|
)
|
-
|
1,758
|
||||||||||||||
Total Assets Under Management
|
$
|
47,010
|
$
|
393
|
$
|
(18
|
)
|
$
|
(438
|
)
|
$
|
46,947
|
||||||||
|
|
September 30,
|
September 30,
|
%
|
|||||||||
|
2013
|
2014
|
Inc.(Dec.)
|
|||||||||
Equities:
|
||||||||||||
Open-end Funds
|
$
|
15,581
|
$
|
17,458
|
12.0
|
%
|
||||||
Closed-end Funds
|
6,721
|
6,963
|
3.6
|
|||||||||
Institutional & PWM - direct
|
15,026
|
16,223
|
8.0
|
|||||||||
Institutional & PWM - sub-advisory
|
3,503
|
3,525
|
0.6
|
|||||||||
Investment Partnerships
|
805
|
899
|
11.7
|
|||||||||
SICAV (a)
|
94
|
121
|
28.7
|
|||||||||
Total Equities
|
41,730
|
45,189
|
8.3
|
|||||||||
Fixed Income:
|
||||||||||||
Money-Market Fund
|
1,714
|
1,698
|
(0.9
|
)
|
||||||||
Institutional & PWM
|
63
|
60
|
(4.8
|
)
|
||||||||
Total Fixed Income
|
1,777
|
1,758
|
(1.1
|
)
|
||||||||
Total Assets Under Management
|
$
|
43,507
|
$
|
46,947
|
7.9
|
%
|
||||||
|
|
% Increase/
|
|||||||||||||||||||||||||||
|
(decrease) from
|
|||||||||||||||||||||||||||
|
9/13
|
12/13
|
3/14
|
6/14
|
9/14
|
9/13
|
6/14
|
|||||||||||||||||||||
Equities:
|
||||||||||||||||||||||||||||
Open-end Funds
|
$
|
15,581
|
$
|
17,078
|
$
|
17,531
|
$
|
18,508
|
$
|
17,548
|
12.0
|
%
|
(5.7
|
%)
|
||||||||||||||
Closed-end Funds
|
6,721
|
6,945
|
6,967
|
7,224
|
6,963
|
3.6
|
(3.6
|
)
|
||||||||||||||||||||
Institutional & PWM - direct
|
15,026
|
16,486
|
16,403
|
16,941
|
16,223
|
8.0
|
(4.2
|
)
|
||||||||||||||||||||
Institutional & PWM - sub-advisory
|
3,503
|
3,797
|
3,822
|
3,883
|
3,525
|
0.6
|
(9.2
|
)
|
||||||||||||||||||||
Investment Partnerships
|
805
|
811
|
865
|
897
|
899
|
11.7
|
0.2
|
|||||||||||||||||||||
SICAV (a)
|
94
|
96
|
91
|
94
|
121
|
28.7
|
28.7
|
|||||||||||||||||||||
Total Equities
|
41,730
|
45,213
|
45,679
|
47,547
|
45,189
|
8.3
|
(5.0
|
)
|
||||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||||||
Money-Market Fund
|
1,714
|
1,735
|
1,812
|
1,766
|
1,698
|
(0.9
|
)
|
(3.9
|
)
|
|||||||||||||||||||
Institutional & PWM
|
63
|
62
|
64
|
64
|
60
|
(4.8
|
)
|
(6.3
|
)
|
|||||||||||||||||||
Total Fixed Income
|
1,777
|
1,797
|
1,876
|
1,830
|
1,758
|
(1.1
|
)
|
(3.9
|
)
|
|||||||||||||||||||
Total Assets Under Management
|
$
|
43,507
|
$
|
47,010
|
$
|
47,555
|
$
|
49,377
|
$
|
46,947
|
7.9
|
%
|
(4.9
|
%)
|
||||||||||||||
|
||||||||||||||||||||||||||||
(a) Includes $92 million, $94 million, $88 million, $77 million and $70 million of proprietary seed capital at September 30, 2013,
|
||||||||||||||||||||||||||||
December 31, 2013, March 31, 2014, June 30, 2014 and September 30, 2014, respectively.
|
|
2014
|
2013
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
92,591
|
$
|
80,438
|
||||
Distribution fees and other income
|
15,727
|
13,545
|
||||||
Institutional research services
|
2,540
|
2,394
|
||||||
Total revenues
|
110,858
|
96,377
|
||||||
Expenses
|
||||||||
Compensation
|
43,316
|
39,803
|
||||||
Management fee
|
3,756
|
5,629
|
||||||
Distribution costs
|
15,101
|
12,769
|
||||||
Other operating expenses
|
5,099
|
5,448
|
||||||
Total expenses
|
67,272
|
63,649
|
||||||
Operating income
|
43,586
|
32,728
|
||||||
Other income (expense)
|
||||||||
Net gain/(loss) from trading securities
|
(9,434
|
)
|
13,589
|
|||||
Net gain from AFS securities
|
348
|
5,745
|
||||||
Interest and dividend income
|
1,084
|
1,134
|
||||||
Interest expense
|
(1,987
|
)
|
(2,164
|
)
|
||||
Shareholder-designated contribution
|
-
|
(313
|
)
|
|||||
Total other income/(expense), net
|
(9,989
|
)
|
17,991
|
|||||
Income before income taxes
|
33,597
|
50,719
|
||||||
Income tax provision
|
13,045
|
17,515
|
||||||
Net income
|
20,552
|
33,204
|
||||||
Net income/(loss) attributable to noncontrolling interests
|
(3,113
|
)
|
106
|
|||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
23,665
|
$
|
33,098
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||
Basic
|
$
|
0.94
|
$
|
1.29
|
||||
Diluted
|
$
|
0.93
|
$
|
1.29
|
||||
|
(Unaudited; in thousands, except per share data)
|
||||||||
|
2014
|
2013
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
270,544
|
$
|
230,488
|
||||
Distribution fees and other income
|
46,367
|
37,420
|
||||||
Institutional research services
|
6,720
|
6,940
|
||||||
Total revenues
|
323,631
|
274,848
|
||||||
Expenses
|
||||||||
Compensation
|
131,258
|
113,214
|
||||||
Management fee
|
13,628
|
14,455
|
||||||
Distribution costs
|
44,087
|
35,650
|
||||||
Other operating expenses
|
17,036
|
16,290
|
||||||
Total expenses
|
206,009
|
179,609
|
||||||
Operating income
|
117,622
|
95,239
|
||||||
Other income (expense)
|
||||||||
Net gain from trading securities
|
4,091
|
27,575
|
||||||
Net gain from AFS securities
|
3,511
|
16,191
|
||||||
Interest and dividend income
|
3,557
|
4,986
|
||||||
Interest expense
|
(6,000
|
)
|
(8,448
|
)
|
||||
Shareholder-designated contribution
|
(134
|
)
|
(5,313
|
)
|
||||
Total other income, net
|
5,025
|
34,991
|
||||||
Income before income taxes
|
122,647
|
130,230
|
||||||
Income tax provision
|
44,796
|
46,434
|
||||||
Net income
|
77,851
|
83,796
|
||||||
Net income/(loss) attributable to noncontrolling interests
|
(2,718
|
)
|
260
|
|||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
80,569
|
$
|
83,536
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||
Basic
|
$
|
3.17
|
$
|
3.25
|
||||
Diluted
|
$
|
3.15
|
$
|
3.25
|
||||
|
Nine months ended
|
||||||||
September 30,
|
||||||||
|
2014
|
2013
|
||||||
Cash flows provided by (used in):
|
(in thousands)
|
|||||||
Operating activities
|
$
|
122,150
|
$
|
155,493
|
||||
Investing activities
|
2,593
|
25,089
|
||||||
Financing activities
|
23,222
|
(125,779
|
)
|
|||||
Effect of exchange rates on cash and cash equivalents
|
5
|
-
|
||||||
Net increase
|
147,970
|
54,803
|
||||||
Cash and cash equivalents at beginning of period
|
210,451
|
190,608
|
||||||
Cash and cash equivalents at end of period
|
$
|
358,421
|
$
|
245,411
|
||||
|
Fair Value
|
Fair Value
|
|||||||||||
|
assuming
|
assuming
|
||||||||||
|
10% decrease in
|
10% increase in
|
||||||||||
(unaudited)
|
Fair Value
|
equity prices
|
equity prices
|
|||||||||
At September 30, 2014:
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
253,097
|
$
|
227,787
|
$
|
278,407
|
||||||
At December 31, 2013:
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
291,346
|
$
|
262,211
|
$
|
320,481
|
||||||
|
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) Total Number of
|
(d) Maximum
|
|||||||||||||||
|
(a) Total
|
(b) Average
|
Shares Repurchased as
|
Number of Shares
|
||||||||||||
|
Number of
|
Price Paid Per
|
Part of Publicly
|
That May Yet Be
|
||||||||||||
|
Shares
|
Share, net of
|
Announced Plans
|
Purchased Under
|
||||||||||||
Period
|
Repurchased
|
Commissions
|
or Programs
|
the Plans or Programs
|
||||||||||||
7/01/14 - 7/31/14
|
25,912
|
$
|
83.65
|
25,912
|
672,583
|
|||||||||||
8/01/14 - 8/31/14
|
20,259
|
78.42
|
20,259
|
652,324
|
||||||||||||
9/01/14 - 9/30/14
|
48,771
|
74.19
|
48,771
|
603,553
|
||||||||||||
Totals
|
94,942
|
$
|
77.67
|
94,942
|
||||||||||||
|
Item 6. | (a) Exhibits |
|
31.1
|
Certification of CEO pursuant to Rule 13a-14(a).
|
|
31.2
|
Certification of CFO pursuant to Rule 13a-14(a).
|
|
32.1
|
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
||
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
||
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
||
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
||
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
By: /s/ Kieran Caterina
|
By: /s/ Diane M. LaPointe
|
||
Name: Kieran Caterina
|
Name: Diane M. LaPointe
|
||
Title: Co-Chief Accounting Officer
|
Title: Co-Chief Accounting Officer
|
||
|
|
||
Date: November 7, 2014
|
Date: November 7, 2014
|
Exhibit 31.1
|
Certifications
|
I, Mario J. Gabelli, certify that:
|
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Mario J. Gabelli
|
Mario J. Gabelli
|
|
Chief Executive Officer
|
|
Date:
|
November 7, 2014
|
Exhibit 31.2
|
Certifications
|
I, Robert S. Zuccaro, certify that:
|
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Robert S. Zuccaro
|
Robert S. Zuccaro
|
|
Chief Financial Officer
|
|
Date:
|
November 7, 2014
|
Goodwill and Identifiable Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2014
|
Dec. 31, 2013
|
Sep. 30, 2013
|
---|---|---|---|
Goodwill [Line Items] | |||
Goodwill | $ 3.5 | ||
Percentage interest owned in subsidiary (in hundredths) | 94.00% | ||
Identifiable Intangible Asset | 1.9 | 1.9 | 1.9 |
Subsidiary [Member]
|
|||
Goodwill [Line Items] | |||
Goodwill | 3.3 | ||
G.distributors, LLC [Member]
|
|||
Goodwill [Line Items] | |||
Goodwill | $ 0.2 |
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