INVESTMENTS (Ares Holdings, Inc. and Ares Investments LLC)

3 Months Ended

Mar. 31, 2014

Ares Holdings, Inc. and Ares Investments LLC

INVESTMENTS

4. INVESTMENTS

        Investments are comprised of (a) the investments held by AIH LLC at fair value and (b) investments held by the Consolidated Funds at fair value.

        Investments held by AIH LLC are summarized below:

	Fair value at				Fair value as a percentage of total investments at
	March 31, 2014		December 31, 2013		March 31, 2014			December 31, 2013
Private Investment Partnership Interests:
Ares Credit Strategies Fund II, L.P.	$	884	$	1,998		0.7	%		2.2	%
Ares Credit Strategies Fund III, L.P.		18		—		0.0	%		—
Ares Strategic Investment Partners, L.P.		77		—		0.1	%		—
Ares Strategic Investment Partners III, L.P.		2,757		2,714		2.3	%		3.0	%
Ares Corporate Opportunities Fund, L.P.(1)		1,116		1,009		0.9	%		1.1	%
Ares Special Situations Fund III, L.P.		26,235		24,253		21.6	%		27.2	%
Ares SSF Riopelle, L.P.		2,223		—		1.8	%		—
Ares Enhanced Loan Investment Strategy IX, L.P.		517		512		0.4	%		0.6	%
Ares Europe CSF Fund (C) LP		581		301		0.5	%		0.3	%
Ares Multi-Strategy Credit Fund V (H), L.P.		1,054		1,022		0.9	%		1.1	%
AREA European Property Enhancement Program L.P.		1,344		1,735		1.1	%		1.9	%
AREA Sponsor Holdings LLC		32,294		31,560		26.6	%		35.4	%
Resolution Life L.P.		39,955		21,846		32.8	%		24.4	%
Ares Strategic Real Estate Program—HHC, LLC		1,256		1,227		1.0	%		1.4	%
Ares Capital Europe II (D), L.P.		10,010		—		8.2	%		—
Ares Capital Europe II (E), L.P.		21		—		0.0	%		—
Total private investment partnership interests (cost: $96,023 and $68,580 at March 31, 2014 and December 31, 2013, respectively)		120,342		88,177		98.9	%		98.6	%
Common Stock:
Ares Multi-Strategy Credit Fund, Inc.		92		89		0.1	%		0.1	%
Total common stock (cost: $100 and $100 at March 31, 2014 and December 31, 2013, respectively)		92		89		0.1	%		0.1	%
Corporate Bonds:
Ares Commercial Real Estate Corporation Convertible Senior Notes		1,174		1,172		1.0	%		1.3	%
Total corporate bond (cost: $1,150 and $1,150, at March 31, 2014 and December 31, 2013, respectively)		1,174		1,172		1.0	%		1.3	%
Total investments (cost: $97,273 and $69,830 at March 31, 2014 and December 31, 2013, respectively)	$	121,608	$	89,438		100.0	%		100.0	%

(1)

Security represents the sole underlying investment within ACOF Co-Investors LLC.

        Investments held in the Consolidated Funds are summarized below:

	Fair value at				Fair value as a percentage of total investments at
	March 31, 2014		December 31, 2013		March 31, 2014			December 31, 2013
United States:
Fixed income securities:
Consumer discretionary	$	4,036,222	$	4,146,611		20.8	%		20.0	%
Consumer staples		179,326		338,735		0.9	%		1.6	%
Energy		507,527		535,857		2.6	%		2.6	%
Financials		579,374		544,879		3.0	%		2.6	%
Healthcare, education and childcare		1,072,158		1,176,418		5.5	%		5.6	%
Industrials		2,009,958		2,038,390		10.4	%		9.8	%
Information technology		490,988		542,377		2.5	%		2.6	%
Materials		338,512		463,864		1.7	%		2.2	%
Telecommunication services		1119,397		1,153,691		5.7	%		5.5	%
Utilities		235,137		222,410		1.2	%		1.1	%
Total fixed income securities (cost: $10,511,946 and $11,071,982, at March 31, 2014 and December 31, 2013, respectively)		10,568,599		11,163,232		54.3	%		53.6	%
Equity securities:
Consumer discretionary		2,327,631		2,464,520		12.0	%		11.9	%
Consumer staples		252,157		201,059		1.3	%		1.0	%
Energy		191,165		193,946		1.0	%		1.0	%
Financials		7,069		6,172		0.0	%		0.0	%
Healthcare, education and childcare		316,317		296,817		1.6	%		1.5	%
Industrials		133,071		134,544		0.7	%		0.6	%
Materials		1		31		0.0	%		0.0	%
Partnership and LLC interests		43,993		41,001		0.2	%		0.2	%
Telecommunication services		32,934		51,921		0.2	%		0.2	%
Total equity securities (cost: $2,548,496 and $2,733,448 at March 31, 2014 and December 31, 2013, respectively)		3,304,338		3,390,011		17.0	%		16.4	%

	Fair value at				Fair value as a percentage of total investments at
	March 31, 2014		December 31, 2013		March 31, 2014			December 31, 2013
Europe:
Fixed income securities:
Consumer discretionary		1,381,696		1,858,364		7.2	%		8.9	%
Consumer staples		189,839		175,440		1.0	%		0.8	%
Energy		17,293		4,906		0.1	%		0.0	%
Financials		434,952		322,355		2.2	%		1.5	%
Healthcare, education and childcare		341,277		410,726		1.8	%		2.0	%
Industrials		442,971		485,243		2.3	%		2.3	%
Information technology		106,368		140,976		0.5	%		0.7	%
Materials		295,924		328,867		1.5	%		1.6	%
Telecommunication services		881,047		944,800		4.5	%		4.5	%
Utilities		7,205		37,001		0.0	%		0.2	%
Total fixed income securities (cost: $4,023,703 and $4,747,808 at March 31, 2014 and December 31, 2013, respectively)		4,098,572		4,708,678		21.1	%		22.5	%
Equity securities:
Consumer discretionary		9,924		10,686		0.1	%		0.1	%
Consumer staples		762		668		0.0	%		0.0	%
Healthcare, education and childcare		28,075		28,607		0.1	%		0.1	%
Industrials		86		8,595		0.0	%		0.0	%
Materials		34		773		0.0	%		0.0	%
Telecommunication services		1,937		1,524		0.0	%		0.0	%
Total equity securities (cost: $79,206 and $83,277 at March 31, 2014 and December 31, 2013, respectively)		40,818		50,853		0.2	%		0.2	%
Asia and other:
Fixed income securities:
Consumer discretionary		41,216		43,538		0.2	%		0.2	%
Financials		457,245		456,463		2.3	%		2.2	%
Healthcare, education and childcare		14,543		14,556		0.1	%		0.1	%
Information Technology		22,247		22,012		0.1	%		0.1	%
Materials		16,212		15,885		0.1	%		0.1	%
Telecommunication services		80,872		81,978		0.4	%		0.4	%
Total fixed income securities (cost: $570,815 and $593,188, at March 31, 2014 and December 31, 2013, respectively)		632,335		634,432		3.2	%		3.1	%
Equity securities:
Consumer staples		30,874		77,572		0.2	%		0.4	%
Healthcare, education and childcare		33,610		23,493		0.2	%		0.1	%
Materials		52,947		52,947		0.3	%		0.3	%
Partnership and LLC interests		8,825		—		0.0	%		0.3	%
Utilities		10,203		4,724		0.1	%		0.0	%
Total equity securities (cost: $118,859 and $135,631 at March 31, 2014 and December 31, 2013, respectively)		136,459		158,736		0.8	%		0.8	%

	Fair value at					Fair value as a percentage of total investments at
	March 31, 2014		December 31, 2013			March 31, 2014			December 31, 2013
Canada:
Fixed income securities:
Consumer discretionary		113,336		121,132			0.6	%		0.6	%
Energy		92,273		87,469			0.5	%		0.4	%
Healthcare, education and childcare		78,570		104,464			0.4	%		0.5	%
Industrials		16,308		16,331			0.1	%		0.1	%
Telecommunication services		143,770		142,374			0.7	%		0.7	%
Total fixed income securities (cost: $448,124 and $480,231at March 31, 2014 and December 31, 2013, respectively)		444,257		471,770			2.3	%		2.3	%
Equity securities:
Consumer discretionary		901		892			0.0	%		0.0	%
Energy		34,125		51,187			0.2	%		0.2	%
Total equity securities (cost: $75,256 and $75,256 at March 31, 2014 and December 31, 2013, respectively)		35,026		52,079			0.2	%		0.2	%
Australia:
Fixed income securities:
Consumer discretionary		—		203			—			0.0	%
Energy		43,433		—			0.0	%		—
Industrials		97,605		99,376			0.5	%		0.5	%
Telecommunication services				—			—			—
Utilities		67,715		68,513			0.3	%		0.3	%
Total fixed income securities (cost: $208,979 and $169,831 at March 31, 2014 and December 31, 2013, respectively)		208,753		168,092			0.8	%		0.8	%
Equity Securities:
Telecommunication services		10,860		16,102			0.1	%		0.1	%
Utilities		5,050		9,353			0.0	%		0.0	%
Total equity securities (cost: $22,545 and $30,140 at March 31, 2014 and December 31, 2013, respectively)		15,910		25,455			0.1	%		0.1	%
Total fixed income securities		15,952,516		17,146,204			81.7	%		82.3	%
Total equity securities		3,532,551		3,677,134			18.3	%		17.7	%
Total Investments, at fair value	$	19,485,067	$	20,823,338			100.0	%		100.0	%
Securities sold short, at fair value	$	—	$	(1,633	)

        At March 31, 2014 and December 31, 2013, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company's total consolidated net assets.