Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2016 and December 31, 2015 was as follows (in thousands):



	Level 1		Level 2		Level 3		Total
June 30, 2016:
Money markets	$	115,570	$	—	$	—	$	115,570
U.S. Treasury Bills	—		634,440		—		634,440
Available-for-sale
Equity securities	203		—		—		203
Fixed income securities	102		—		—		102
Trading
Equity securities	255,744		817		107		256,668
Fixed income securities	129,676		689		—		130,365
Long exchange-traded options	8,045		—		—		8,045
Derivatives	827		6,180		—		7,007
Private equity	—		—		4,831		4,831
Consolidated VIEs
Investments	100,619		134,689		11,713		247,021
Derivatives	485		56,842		—		57,327
Total assets measured at fair value	$	611,271	$	833,657	$	16,651	$	1,461,579

Securities sold not yet purchased
Short equities – corporate	$	12,944	$	—	$	—	$	12,944
Short exchange-traded options	772		—		—		772
Derivatives	1,750		7,798		—		9,548
Consolidated VIEs - derivatives	442		57,025		—		57,467
Contingent payment arrangements	—		—		30,861		30,861
Total liabilities measured at fair value	$	15,908	$	64,823	$	30,861	$	111,592

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		22,039		113		326,235
Fixed income securities	180,194		2,582		—		182,776
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	$	520,791	$	16,148	$	1,159,779

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 held by our consolidated VIEs, is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in thousands)

Balance as of beginning of period	$	22,028		$	27,739		$	16,148		$	27,813
Transfer out	—			—			—			(26		)
Activity related to consolidate VIEs	(3,712		)	—			2,179			—
Purchases	—			76			—			198
Sales	—			(14,178		)	—			(14,178		)
Realized gains (losses), net	—			7,177			—			1,983
Unrealized (losses) gains, net	(1,665		)	(675		)	(1,676		)	4,349
Balance as of end of period	$	16,651		$	20,139		$	16,651		$	20,139

Summary of Information About Level 3 Fair Value Measurements

Quantitative information about private equity Level 3 fair value measurements as of June 30, 2016 and December 31, 2015 is as follows:



	Fair Value		Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity as of June 30, 2016 (included in consolidated VIEs' investments):
Technology, Media and Telecommunications	$	9,346	Market comparable transactions	Revenue multiple	1.7 - 2.9
				Marketability discount	15 - 30%

Private Equity as of December 31, 2015:
Technology, Media and Telecommunications	$	9,527	Market comparable transactions	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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in thousands)

Balance as of beginning of period	$	31,119		$	42,223		$	31,399		$	42,436
Accretion	353			442			706			885
Payments	(611		)	(633		)	(1,244		)	(1,289		)
Balance as of end of period	$	30,861		$	42,032		$	30,861		$	42,032