Fair Value (Tables)

9 Months Ended

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



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
September 30, 2019:
Money markets	$	115,022	$	—	$	—	$	—	$	—	$	115,022
Securities segregated (U.S. Treasury Bills)	—		958,149		—		—		—		958,149
Derivatives	1,282		13,428		—		—		—		14,710
Investments
U.S. Treasury Bills	—		74,342		—		—		—		74,342
Equity securities	137,921		12,977		118		309		—		151,325
Long exchange-traded options	5,803		—		—		—		—		5,803
Limited partnership hedge funds⁽²⁾	—		—		—		—		60,573		60,573
Time deposits⁽³⁾	—		—		—		—		18,070		18,070
Other investments	5,418		—		—		—		7,674		13,092
Total investments	149,142		87,319		118		309		86,317		323,205
Total assets measured at fair value	$	265,446	$	1,058,896	$	118	$	309	$	86,317	$	1,411,086

Securities sold not yet purchased
Short equities – corporate	$	8,538	$	—	$	—	$	—	$	—	$	8,538
Short exchange-traded options	5,152		—		—		—		—		5,152
Derivatives	240		16,418		—		—		—		16,658
Contingent payment arrangements	—		—		26,432		—		—		26,432
Total liabilities measured at fair value	$	13,930	$	16,418	$	26,432	$	—	$	—	$	56,780



	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 September 30,				Nine Months Ended September 30,
	2019		2018		2019			2018
	(in thousands)
Balance as of beginning of period	$	117	$	117	$	142		$	1,071
Purchases	—		—		—			—
Sales	—		—		—			—
Realized gains (losses), net	—		—		—			—
Unrealized gains (losses), net	1		—		(24		)	(954		)
Balance as of end of period	$	118	$	117	$	118		$	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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Balance as of beginning of period	$	25,603	$	10,960	$	7,336	$	10,855
Addition	—		—		17,384		—
Accretion	829		53		1,712		158
Payments	—		—		—		—
Balance as of end of period	$	26,432	$	11,013	$	26,432	$	11,013