Note 6 – Marketable Securities

The amortized cost and estimated fair value of the Company’s Marketable Securities as of September 30, 2012 and December 31, 2011 were as follows:


	September 30, 2012								December 31, 2011
	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	$	—	$	—	$	—	$	—	$	1,008	$	—	$	2	$	1,006
Municipal Bonds		—		—		—		—		9,544		9		—		9,553
Other Debt Securities		—		—		—		—		2,000		—		—		2,000
Seed Capital Investments		9,963		1,160		17		11,106		10,905		812		27		11,690

Total Available-for-Sale		9,963		1,160		17		11,106		23,457		821		29		24,249

Debt Securities Carried by EGL		20,399		252		—		20,651		47,583		518		—		48,101
Mutual Funds		10,650		544		113		11,081		9,350		191		603		8,938

Total	$	41,012	$	1,956	$	130	$	42,838	$	80,390	$	1,530	$	632	$	81,288

Scheduled maturities of the Company’s available-for-sale debt securities as of September 30, 2012 and December 31, 2011 were as follows:


	September 30, 2012				December 31, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	805	$	806	$	8,699	$	8,703
Due after one year through five years		1,094		1,111		3,853		3,856
Due after five years through 10 years		283		295		—		—

Total	$	2,182	$	2,212	$	12,552	$	12,559

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 are included in earnings. The Company had realized gains of $0 and $2 for the three and nine months ended September 30, 2012, respectively, and $11 and $86 for the three and nine months ended September 30, 2011, respectively.

Seed Capital Investments

Seed Capital Investments include equity and debt securities, 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 had realized gains (losses) of ($11) and ($29) for the three and nine months ended September 30, 2012, respectively, and $61 and $521 for the three and nine months ended September 30, 2011, respectively.

Debt Securities Carried by EGL

EGL invests 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 Revenue, Including Interest, on the Unaudited Condensed Consolidated Statements of Operations, as required for broker-dealers in securities. The Company had net realized and unrealized gains (losses) of ($147) and ($553) for the three and nine months ended September 30, 2012, respectively, and ($44) and ($448) for the three and nine months ended September 30, 2011, 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 Revenue, Including Interest, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains (losses) of $494 and $948 for the three and nine months ended September 30, 2012, respectively, and ($740) and ($590) for the three and nine months ended September 30, 2011, respectively.