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Derivative Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
See Note 14, Consolidated Company-Sponsored Investment Funds, for disclosure of derivative instruments held by our consolidated company-sponsored investment funds.

We enter various futures, forwards, options and swaps to economically hedge certain seed capital investments. Also, we have currency forwards that help us to economically hedge certain balance sheet exposures. In addition, our options desk trades long and short exchange-traded equity options. We do not hold any derivatives designated in a formal hedge relationship under ASC 815-10, Derivatives and Hedging.

The notional value and fair value as of June 30, 2025 and December 31, 2024 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below) not designated as hedging instruments were as follows:
 Fair Value
 Notional ValueDerivative AssetsDerivative Liabilities
 (in thousands)
June 30, 2025:
Exchange-traded futures$195,436 $323 $2,582 
Currency forwards82,138 4,936 7,273 
Interest rate swaps12,199 89 118 
Credit default swaps361,851 11,086 20,047 
Total return swaps183,560 4,918 (324)
Option swaps50,194 5,698 381 
Total derivatives$885,378 $27,050 $30,077 
December 31, 2024:
Exchange-traded futures$157,787 $2,835 $33 
Currency forwards27,368 4,881 4,656 
Interest rate swaps17,667 367 14 
Credit default swaps199,720 4,172 9,099 
Total return swaps216,468 663 1,087 
Option swaps50,459 8,023 55 
Total derivatives$669,469 $20,941 $14,944 

As of June 30, 2025 and December 31, 2024, the derivative assets and liabilities are included in both receivables and payables to brokers and dealers on our condensed consolidated statements of financial condition.
The gains and losses for derivative instruments for the three and six months ended June 30, 2025 and 2024 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
 (in thousands)
Exchange-traded futures$(3,891)$(871)$(3,633)$(2,450)
Currency forwards(5,120)(9)(5,775)355 
Interest rate swaps42 282 (310)425 
Credit default swaps(2,921)(91)(2,487)(920)
Total return swaps2,040 (682)(9,377)(3,938)
Option swaps(1,224)(259)(2,268)(52)
Net (losses) on derivative instruments$(11,074)$(1,630)$(23,850)$(6,580)

We may be exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments. We minimize our counterparty exposure through a credit review and approval process. In addition, we have executed various collateral arrangements with counterparties to the over-the-counter derivative transactions that require both pledging and accepting collateral in the form of cash. As of June 30, 2025 and December 31, 2024, we held $3.7 million and $10.4 million, respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in payables to brokers and dealers in our condensed consolidated statements of financial condition.

Although notional amount typically is utilized as the measure of volume in the derivatives market, it is not used as a measure of credit risk. Generally, the current credit exposure of our derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe us if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates we would owe money to the counterparty if the contract were closed. Generally, if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for aggregate net settlement.
Our standardized contracts for over-the-counter derivative transactions, known as ISDA master agreements, provide for collateralization. As of June 30, 2025 and December 31, 2024, we delivered $13.4 million and $5.2 million, respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our condensed consolidated statement of financial condition.