Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2019:
Money markets	$	114,136	$	—	$	—	$	—	$	—	$	114,136
Securities segregated (U.S. Treasury Bills)	—		1,109,589		—		—		—		1,109,589
Derivatives	220		11,251		—		—		—		11,471
Investments
U.S. Treasury Bills	—		—		—		—		—		—
Equity securities	126,007		8,378		117		318		—		134,820
Long exchange-traded options	2,291		—		—		—		—		2,291
Limited partnership hedge funds⁽²⁾	—		—		—		—		66,831		66,831
Time deposits⁽³⁾	—		—		—		—		8,487		8,487
Other investments	5,374		—		—		—		6,900		12,274
Total investments	133,672		8,378		117		318		82,218		224,703
Total assets measured at fair value	$	248,028	$	1,129,218	$	117	$	318	$	82,218	$	1,459,899

Securities sold not yet purchased
Short equities – corporate	$	3,227	$	—	$	—	$	—	$	—	$	3,227
Short exchange-traded options	2,177		—		—		—		—		2,177
Derivatives	3,075		18,254		—		—		—		21,329
Contingent payment arrangements	—		—		25,603		—		—		25,603
Total liabilities measured at fair value	$	8,479	$	18,254	$	25,603	$	—	$	—	$	52,336



	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 June 30,					Six Months Ended June 30,
	2019		2018			2019			2018
	(in thousands)
Balance as of beginning of period	$	115	$	1,071		$	142		$	1,071
Purchases	—		—			—			—
Sales	—		—			—			—
Realized gains (losses), net	—		—			—			—
Unrealized gains (losses), net	2		(954		)	(25		)	(954		)
Balance as of end of period	$	117	$	117		$	117		$	117

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,
	2019		2018		2019		2018
	(in thousands)
Balance as of beginning of period	$	7,390	$	10,908	$	7,336	$	10,855
Addition	17,384		—		17,384		—
Accretion	829		52		883		105
Payments	—		—		—		—
Balance as of end of period	$	25,603	$	10,960	$	25,603	$	10,960