Marketable Securities

9 Months Ended

Sep. 30, 2011

Marketable Securities

Marketable Securities

Note 7 – Marketable Securities

The amortized cost and estimated fair value of the Company's Marketable Securities as of September 30, 2011 and December 31, 2010 were as follows:

	September 30, 2011								December 31, 2010
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-Sale
Debt Securities:
Corporate Bonds	$	—	$	—	$	—	$	—	$	7,126	$	45	$	—	$	7,171
Municipal Bonds		1,300		1		—		1,301		16,910		107		15		17,002
Other Debt Securities		—		—		—		—		1,000		—		—		1,000
Seed Capital Investments		14,572		1,101		633		15,040		14,112		2,250		25		16,337
Total Available-for-Sale		15,872		1,102		633		16,341		39,148		2,402		40		41,510
Debt Securities Carried by EGL		37,393		548		—		37,941		50,837		501		18		51,320
Mutual Funds		9,066		264		854		8,476		—		—		—		—
Total	$	62,331	$	1,914	$	1,487	$	62,758	$	89,985	$	2,903	$	58	$	92,830

Scheduled maturities of the Company's available-for-sale debt securities as of September 30, 2011 and December 31, 2010 were as follows:

	September 30, 2011				December 31, 2010
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	1,300	$	1,301	$	17,183	$	17,265
Due after one year through five years		—		—		7,853		7,908
Total	$	1,300	$	1,301	$	25,036	$	25,173

Since the Company has the ability and intent to hold its available-for-sale securities until a recovery of fair value is equal to an amount approximating its amortized cost, which may be at maturity, and has not incurred credit losses on its securities, it does not consider such unrealized loss positions to be other-than-temporarily impaired at September 30, 2011.

Debt Securities

The Company invests in corporate and municipal bonds and other debt securities, which are classified as available-for-sale securities within Marketable Securities on the Unaudited Condensed Consolidated Statements of Financial Condition. Unrealized gains and losses for these securities are included in Accumulated Other Comprehensive Income and realized gains and losses included in earnings. The Company had realized gains of $11 and $86 for the three and nine months ended September 30, 2011, respectively, and $26 and $3,450 for the three and nine months ended September 30, 2010, respectively.

Seed Capital Investments

Seed Capital Investments include equity securities and their equivalents, which are classified as available-for-sale securities within Marketable Securities on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities are stated at quoted market value with unrealized gains and losses included in Accumulated Other Comprehensive Income and realized gains and losses included in earnings. The Company earned realized gains of $61 and $521 for the three and nine months ended September 30, 2011, respectively, and $101 and $1,159 for the three and nine months ended September 30, 2010, respectively.

Debt Securities Carried by EGL

During the first quarter of 2010, EGL began to invest in a fixed income portfolio consisting primarily of municipal bonds. These securities are carried at fair value, with changes in fair value recorded in Other Revenues on the Unaudited Condensed Consolidated Statement of Operations, as required for broker-dealers in securities. The Company had net realized and unrealized gains (losses) of ($44) and ($448) for the three and nine months ended September 30, 2011, respectively, and $172 and $348 for the three and nine months ended September 30, 2010, respectively.

Mutual Funds

During the first quarter of 2011, the Company began to invest in a portfolio of mutual funds as an economic hedge against the Company's deferred compensation program. See Note 15 for further information. These securities are carried at fair value, with changes in fair value recorded in Other Revenues on the Unaudited Condensed Consolidated Statements of Operations. The Company had net unrealized gains (losses) of ($740) and ($590) for the three and nine months ended September 30, 2011, respectively.