Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value [Abstract]

Fair value of assets and liabilities measured on a recurring basis

Valuation of our financial instruments by pricing observability levels as of March 31, 2014 and December 31, 2013 was as follows (in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2014:
Money markets	$	124,619	$	—	$	—	$	124,619
U.S. Treasury Bills		—		884,756		—		884,756
Available-for-sale
Equity securities		5,279		—		—		5,279
Fixed income securities		262		—		—		262
Trading
Equity securities		329,799		1,411		—		331,210
Fixed income securities		195,304		2,747		—		198,051
Long-exchange traded options		18,826		—		—		18,826
Derivatives		144		3,508		—		3,652
Private equity		11,264		5,670		50,744		67,678
Total assets measured at fair value	$	685,497	$	898,092	$	50,744	$	1,634,333
Securities sold not yet purchased
Short equities – corporate	$	119,359	$	—	$	—	$	119,359
Short exchange-traded options		10,902		—		—		10,902
Derivatives		2,348		4,666		—		7,014
Total liabilities measured at fair value	$	132,609	$	4,666	$	—	$	137,275

December 31, 2013:
Money markets	$	153,630	$	—	$	—	$	153,630
U.S. Treasury Bills		—		964,953		—		964,953
Available-for-sale
Equity securities		4,794		—		—		4,794
Fixed income securities		64		—		—		64
Trading
Equity securities		312,931		1,235		—		314,166
Fixed income securities		194,085		4,253		—		198,338
Long exchange-traded options		22,621		—		—		22,621
Derivatives		290		2,995		—		3,285
Private equity		19,836		8,934		52,081		80,851
Total assets measured at fair value	$	708,251	$	982,370	$	52,081	$	1,742,702
Securities sold not yet purchased
Short equities – corporate	$	46,978	$	—	$	—	$	46,978
Short exchange-traded options		25,005		—		—		25,005
Derivatives		2,542		3,769		—		6,311
Total liabilities measured at fair value	$	74,525	$	3,769	$	—	$	78,294

Fair value measurement Level 3 reconciliation

The change in carrying value associated with Level 3 financial instruments carried at fair value is as follows:

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Balance as of beginning of period	$	52,081		$	76,953
Transfer out		—			—
Purchases		501			10
Sales		(1,121	)		—
Realized gains (losses), net		1,121			—
Unrealized gains (losses), net		(1,838	)		(2,110	)
Balance as of end of period	$	50,744		$	74,853

Information about Level 3 fair value measurements

Quantitative information about Level 3 fair value measurements as of March 31, 2014 and December 31, 2013 is as follows:

	Fair Value as of March 31, 2014			Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity:
Technology, Media and    Telecommunications		$	15,457	Market comparable companies	Revenue multiple	2.0 – 2.5
					Discount rate	18	%
					Discount years	1.75
Healthcare and Cleantech		$	2,539	Market comparable companies	Revenue multiple(1)	0.9 – 16.8
					R&D multiple(1)	0.3 – 10.0
					Discount for lack of marketability and risk factors	50	%

⁽¹⁾ The median for the Healthcare and Cleantech revenue multiple is 7.2; the median R&D multiple is 5.3.

	Fair Value as  of December 31, 2013		Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity:
Technology, Media and    Telecommunications	$	13,956	Market comparable companies	Revenue multiple		2.5 – 3.5
				Discount rate		18	%
				Discount years		1.0
Healthcare and Cleantech	$	2,892	Market comparable companies	Revenue multiple(2)		1.2 – 49.0
				R&D multiple(2)		1.1 – 17.1
				Discount for lack of marketability and risk factors		50-60	%

⁽²⁾ The median for the Healthcare and Cleantech revenue multiple is 12.5; the median R&D multiple is 11.0.