Marketable Securities

3 Months Ended

Mar. 31, 2013

Marketable Securities

Note 6 – Marketable Securities

The amortized cost and estimated fair value of the Company’s Marketable Securities as of March 31, 2013 and December 31, 2012 were as follows:

	March 31, 2013								December 31, 2012
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Seed Capital Investments	$	10,468	$	1,445	$	6	$	11,907	$	10,172	$	1,428	$	20	$	11,580
Debt Securities Carried by EGL		13,937		92		3		14,026		13,522		97		—		13,619
Mutual Funds		7,708		766		—		8,474		10,946		412		12		11,346
Total	$	32,113	$	2,303	$	9	$	34,407	$	34,640	$	1,937	$	32	$	36,545

Scheduled maturities of the Company’s available-for-sale debt securities within the Seed Capital Investments portfolio as of March 31, 2013 and December 31, 2012 were as follows:

	March 31, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	1,280	$	1,292	$	658	$	659
Due after one year through five years		1,198		1,223		1,415		1,437
Due after five years through 10 years		345		346		347		346
Total	$	2,823	$	2,861	$	2,420	$	2,442

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 fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) and realized gains and losses included in earnings. The Company had realized gains of $97 and $32 for the three months ended March 31, 2013 and 2012, 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 losses of ($11) and ($256) for the three months ended March 31, 2013 and 2012, 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 14 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 of $597 and $548 for the three months ended March 31, 2013 and 2012, respectively.