Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2018:
Money markets	$	85,479	$	—	$	—	$	—	$	—	$	85,479
Securities segregated (U.S. Treasury Bills)	—		1,288,867		—		—		—		1,288,867
Derivatives	2,105		12,008		—		—		—		14,113
Investments
U.S. Treasury Bills	—		47,565		—		—		—		47,565
Equity securities	246,820		7,088		117		400		—		254,425
Long exchange-traded options	8,233		—		—		—		—		8,233
Limited partnership hedge funds⁽²⁾	—		—		—		—		138,216		138,216
Private equity	—		—		—		36,967		—		36,967
Time deposits⁽³⁾	—		—		—		—		8,793		8,793
Other investments	—		—		—		—		11,438		11,438
Total investments	255,053		54,653		117		37,367		158,447		505,637
Total assets measured at fair value	$	342,637	$	1,355,528	$	117	$	37,367	$	158,447	$	1,894,096

Securities sold not yet purchased
Short equities – corporate	$	7,454	$	—	$	—	$	—	$	—	$	7,454
Short exchange-traded options	18,342		—		—		—		—		18,342
Derivatives	985		13,567		—		—		—		14,552
Contingent payment arrangements	—		—		10,960		—		—		10,960
Total liabilities measured at fair value	$	26,781	$	13,567	$	10,960	$	—	$	—	$	51,308

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 June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(in thousands)
Balance as of beginning of period	$	1,071		$	5,026	$	1,071		$	5,023
Purchases	—			—		—			—
Sales	—			—		—			—
Realized gains (losses), net	—			—		—			—
Unrealized gains (losses), net	(954		)	2		(954		)	5
Balance as of end of period	$	117		$	5,028	$	117		$	5,028

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,
	2018		2017			2018		2017
	(in thousands)
Balance as of beginning of period	$	10,908	$	17,177		$	10,855	$	17,589
Accretion	52		177			105		355
Payments	—		(577		)	—		(1,167		)
Balance as of end of period	$	10,960	$	16,777		$	10,960	$	16,777