Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
March 31, 2018:
Money markets	$	48,942	$	—	$	—	$	—	$	—	$	48,942
Securities segregated (U.S. Treasury Bills)	—		1,024,529		—		—		—		1,024,529
Derivatives	1,517		12,048		—		—		—		13,565
Investments
U.S. Treasury Bills	—		52,685		—		—		—		52,685
Equity securities	237,169		15,533		117		413		—		253,232
Long exchange-traded options	5,395		—		—		—		—		5,395
Limited partnership hedge funds⁽²⁾	—		—		—		—		39,112		39,112
Private equity	—		—		954		37,057		—		38,011
Time deposits⁽³⁾	—		—		—		—		5,160		5,160
Other investments	—		—		—		—		11,786		11,786
Total investments	242,564		68,218		1,071		37,470		56,058		405,381
Total assets measured at fair value	$	293,023	$	1,104,795	$	1,071	$	37,470	$	56,058	$	1,492,417

Securities sold not yet purchased
Short equities – corporate	$	13,567	$	—	$	—	$	—	$	—	$	13,567
Short exchange-traded options	13,966		—		—		—		—		13,966
Derivatives	1,240		11,866		—		—		—		13,106
Contingent payment arrangements	—		—		10,908		—		—		10,908
Total liabilities measured at fair value	$	28,773	$	11,866	$	10,908	$	—	$	—	$	51,547

December 31, 2017:
Money markets	$	62,071	$	—	$	—	$	—	$	—	$	62,071
Securities segregated (U.S. Treasury Bills)	—		816,350		—		—		—		816,350
Derivatives	948		10,671		—		—		—		11,619
Investments
U.S. Treasury Bills	—		52,609		—		—		—		52,609
Equity securities	276,755		16,618		117		94		—		293,584
Long exchange-traded options	4,981		—		—		—		—		4,981
Limited partnership hedge funds⁽²⁾	—		—		—		—		37,199		37,199
Private equity	—		—		954		37,232		—		38,186
Time deposits⁽³⁾	—		—		—		—		5,138		5,138
Other investments	—		—		—		—		11,892		11,892
Total investments	281,736		69,227		1,071		37,326		54,229		443,589
Total assets measured at fair value	$	344,755	$	896,248	$	1,071	$	37,326	$	54,229	$	1,333,629

Securities sold not yet purchased
Short equities – corporate	$	16,376	$	—	$	—	$	—	$	—	$	16,376



Short exchange-traded options	13,585		—		—		—		—		13,585
Derivatives	2,540		11,783		—		—		—		14,323
Contingent payment arrangements	—		—		10,855		—		—		10,855
Total liabilities measured at fair value	$	32,501	$	11,783	$	10,855	$	—	$	—	$	55,139

⁽¹⁾Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽²⁾ Investments in equity method investees that are not measured at fair value in accordance with GAAP.

⁽³⁾ Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

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 and trading equity securities, is as follows:



	Three Months Ended March 31,
	2018		2017
	(in thousands)
Balance as of beginning of period	$	1,071	$	5,023
Purchases	—		—
Sales	—		—
Realized gains (losses), net	—		—
Unrealized gains (losses), net	—		3
Balance as of end of period	$	1,071	$	5,026

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,
	2018		2017
	(in thousands)
Balance as of beginning of period	$	10,855	$	17,589
Accretion	53		178
Payments	—		(590		)
Balance as of end of period	$	10,908	$	17,177