Fair Value (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
March 31, 2019:
Money markets	$	93,286	$	—	$	—	$	—	$	—	$	93,286
Securities segregated (U.S. Treasury Bills)	—		1,262,178		—		—		—		1,262,178
Derivatives	231		9,823		—		—		—		10,054
Investments
U.S. Treasury Bills	—		—		—		—		—		—
Equity securities	167,346		6,248		115		318		—		174,027
Long exchange-traded options	3,046		—		—		—		—		3,046
Limited partnership hedge funds⁽²⁾	—		—		—		—		77,303		77,303
Time deposits⁽³⁾	—		—		—		—		8,634		8,634
Other investments	5,028		—		—		—		7,155		12,183
Total investments	175,420		6,248		115		318		93,092		275,193
Total assets measured at fair value	$	268,937	$	1,278,249	$	115	$	318	$	93,092	$	1,640,711

Securities sold not yet purchased
Short equities – corporate	$	2,465	$	—	$	—	$	—	$	—	$	2,465
Short exchange-traded options	2,878		—		—		—		—		2,878
Derivatives	1,672		12,718		—		—		—		14,390
Contingent payment arrangements	—		—		7,390		—		—		7,390
Total liabilities measured at fair value	$	7,015	$	12,718	$	7,390	$	—	$	—	$	27,123



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
December 31, 2018:
Money markets	$	102,888	$	—	$	—	$	—	$	—	$	102,888
Securities segregated (U.S. Treasury Bills)	—		1,169,554		—		—		—		1,169,554
Derivatives	1,594		15,485		—		—		—		17,079
Investments
U.S. Treasury Bills	—		392,424		—		—		—		392,424
Equity securities	209,414		8,372		142		315		—		218,243
Long exchange-traded options	2,568		—		—		—		—		2,568
Limited partnership hedge funds⁽²⁾	—		—		—		—		80,699		80,699
Time deposits⁽³⁾	—		—		—		—		8,783		8,783
Other investments	4,269		—		—		—		7,358		11,627
Total investments	216,251		400,796		142		315		96,840		714,344
Total assets measured at fair value	$	320,733	$	1,585,835	$	142	$	315	$	96,840	$	2,003,865

Securities sold not yet purchased
Short equities – corporate	$	4,841	$	—	$	—	$	—	$	—	$	4,841
Short exchange-traded options	3,782		—		—		—		—		3,782
Derivatives	2,534		12,288		—		—		—		14,822
Contingent payment arrangements	—		—		7,336		—		—		7,336
Total liabilities measured at fair value	$	11,157	$	12,288	$	7,336	$	—	$	—	$	30,781

⁽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 March 31,
	2019			2018
	(in thousands)
Balance as of beginning of period	$	142		$	1,071
Purchases	—			—
Sales	—			—
Realized gains (losses), net	—			—
Unrealized gains (losses), net	(27		)	—
Balance as of end of period	$	115		$	1,071

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,
	2019		2018
	(in thousands)
Balance as of beginning of period	$	7,336	$	10,855
Accretion	54		53
Payments	—		—
Balance as of end of period	$	7,390	$	10,908