Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of March 31, 2016 and December 31, 2015 was as follows (in thousands):



	Level 1		Level 2		Level 3		Total
March 31, 2016:
Money markets	$	249,818	$	—	$	—	$	249,818
U.S. Treasury Bills	—		664,857		—		664,857
Available-for-sale
Equity securities	186		—		—		186
Fixed income securities	107		—		—		107
Trading
Equity securities	259,595		3,044		105		262,744
Fixed income securities	138,279		588		—		138,867
Long exchange-traded options	4,709		—		—		4,709
Derivatives	373		8,782		—		9,155
Private equity	—		—		6,500		6,500
Consolidated VIEs
Investments	76,678		151,061		15,426		243,165
Derivatives	177		66,050		—		66,227
Total assets measured at fair value	$	729,922	$	894,382	$	22,031	$	1,646,335

Securities sold not yet purchased
Short equities – corporate	$	10,143	$	—	$	—	$	10,143
Short exchange-traded options	3,328		—		—		3,328
Derivatives	2,957		12,428		—		15,385
Consolidated VIEs - derivatives	448		66,364		—		66,812
Contingent payment arrangements	—		—		31,119		31,119
Total liabilities measured at fair value	$	16,876	$	78,792	$	31,119	$	126,787

December 31, 2015:
Money markets	$	116,445	$	—	$	—	$	116,445
U.S. Treasury Bills	—		485,121		—		485,121
Available-for-sale
Equity securities	181		—		—		181
Fixed income securities	183		—		—		183
Trading
Equity securities	304,083		22,070		116		326,269
Fixed income securities	180,194		2,594		—		182,788
Long exchange-traded options	5,910		—		—		5,910
Derivatives	1,539		11,049		—		12,588
Private equity	14,305		—		16,035		30,340
Total assets measured at fair value	$	622,840	$	520,834	$	16,151	$	1,159,825

Securities sold not yet purchased
Short equities – corporate	$	15,254	$	—	$	—	$	15,254
Short exchange-traded options	843		—		—		843
Derivatives	2,651		9,570		—		12,221
Contingent payment arrangements	—		—		31,399		31,399
Total liabilities measured at fair value	$	18,748	$	9,570	$	31,399	$	59,717

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as private equity investments, trading equity securities and investments in consolidated VIEs, is as follows:



	Three Months Ended March 31,
	2016			2015
	(in thousands)

Balance as of beginning of period	$	16,151		$	27,813
Transfer out	—			(26		)
Activity related to consolidate VIEs	5,891			—
Purchases	—			122
Sales	—			—
Realized gains (losses), net	—			(5,194		)
Unrealized (losses) gains, net	(11		)	5,024
Balance as of end of period	$	22,031		$	27,739

Summary of Information About Level 3 Fair Value Measurements

Quantitative information about private equity Level 3 fair value measurements as of March 31, 2016 and December 31, 2015 is as follows:



	Fair Value		Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity as of March 31, 2016 (included in consolidated VIEs' investments):
Technology, Media and Telecommunications	$	10,316	Market comparable companies	Revenue multiple	2.7 - 4.4
				Marketability discount	30	%

Private Equity as of December 31, 2015:
Technology, Media and Telecommunications	$	9,527	Market comparable companies	Revenue multiple	2.5 - 4.8
				Marketability discount	30	%

Schedule of Contingent Payment Arrangements Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows:



	Three Months Ended March 31,
	2016			2015
	(in thousands)

Balance as of beginning of period	$	31,399		$	42,436
Accretion	353			443
Payments	(633		)	(656		)
Balance as of end of period	$	31,119		$	42,223