Fair Value (Tables)

9 Months Ended

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



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
September 30, 2018:
Money markets	$	110,654	$	—	$	—	$	—	$	—	$	110,654
Securities segregated (U.S. Treasury Bills)	—		1,262,906		—		—		—		1,262,906
Derivatives	915		10,482		—		—		—		11,397
Investments
U.S. Treasury Bills	—		22,774		—		—		—		22,774
Equity securities	272,053		10,028		117		312		—		282,510
Long exchange-traded options	1,100		—		—		—		—		1,100
Limited partnership hedge funds⁽²⁾	—		—		—		—		116,499		116,499
Private equity	—		—		—		36,450		—		36,450
Time deposits⁽³⁾	—		—		—		—		8,835		8,835
Other investments	—		—		—		—		10,379		10,379
Total investments	273,153		32,802		117		36,762		135,713		478,547
Total assets measured at fair value	$	384,722	$	1,306,190	$	117	$	36,762	$	135,713	$	1,863,504

Securities sold not yet purchased
Short equities – corporate	$	10,162	$	—	$	—	$	—	$	—	$	10,162
Short exchange-traded options	10,799		—		—		—		—		10,799
Derivatives	965		12,972		—		—		—		13,937
Contingent payment arrangements	—		—		11,013		—		—		11,013
Total liabilities measured at fair value	$	21,926	$	12,972	$	11,013	$	—	$	—	$	45,911



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
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 equity securities, is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
	(in thousands)
Balance as of beginning of period	$	117	$	5,028		$	1,071		$	5,023
Purchases	—		—			—			—
Sales	—		—			—			—
Realized gains (losses), net	—		—			—			—
Unrealized gains (losses), net	—		(3,958		)	(954		)	(3,953		)
Balance as of end of period	$	117	$	1,070		$	117		$	1,070

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 September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
	(in thousands)
Balance as of beginning of period	$	10,960	$	16,777		$	10,855	$	17,589
Accretion	53		53			158		408
Change in estimates	—		(193		)	—		(193		)
Payments	—		(4,534		)	—		(5,701		)
Balance as of end of period	$	11,013	$	12,103		$	11,013	$	12,103