Investment Securities and Certificates of Deposit

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of September 30, 2020 and December 31, 2019 were as follows:



	September 30, 2020								December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities	$	—	$	—	$	—	$	—	$	114,204	$	591	$	11	$	114,784
Equity Securities	666		—		322		344		666		—		168		498
Debt Securities Carried by Broker-Dealers	4,806		—		55		4,751		225,727		1,648		20		227,355
Investment Funds	87,794		7,957		—		95,751		58,704		7,809		—		66,513
Total Investment Securities (carried at fair value)	$	93,266	$	7,957	$	377	$	100,846	$	399,301	$	10,048	$	199	$	409,150

Certificates of Deposit (carried at contract value)							—								214,796

Total Investment Securities and Certificates of Deposit							$	100,846							$	623,946

Scheduled maturities of the Company's available-for-sale debt securities as of September 30, 2020 and December 31, 2019 were as follows:



	September 30, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	—	$	—	$	108,662	$	109,217
Due after one year through five years	—		—		5,542		5,567
Total	$	—	$	—	$	114,204	$	114,784

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit 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 net realized gains (losses) of $2 and $75 for the three and nine months ended September 30, 2020, respectively, and ($3) and ($9) for the three and nine months ended September 30, 2019, respectively.

Equity Securities

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains (losses) of $92 and ($154) for the three and nine months ended September 30, 2020, respectively, and $30 and $223 for the three and nine months ended September 30, 2019, respectively.

Debt Securities Carried by Broker-Dealers

EGL and other broker-dealers invest in fixed income portfolios consisting primarily of U.S. Treasury bills, municipal bonds and other debt securities. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, 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 ($1,240) for the nine months ended September 30, 2020 and ($55) and $459 for the three and nine months ended September 30, 2019, respectively.

Investment Funds

The Company invests in a portfolio of exchange-traded funds and mutual funds as an economic hedge against the Company's deferred cash compensation program. See Note 16 for further information. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains of $7,798 and $5,008 for the three and nine months ended September 30, 2020, respectively, and $532 and $9,231 for the three and nine months ended September 30, 2019, respectively.

In February 2020, the Company entered into four-month futures contracts on a stock index fund, with a notional amount of $38,908, as an economic hedge against the Company's deferred cash compensation program. These contracts settled in June 2020. See Note 17 for further information.

In April 2019, the Company entered into three-month futures contracts on a stock index fund with a notional amount of $14,815 for $680, as an economic hedge against the Company's deferred cash compensation program. These contracts settled in June 2019. See Note 17 for further information.

Certificates of Deposit

At December 31, 2019, the Company held certificates of deposit of $214,796 with certain banks with original maturities of six months or less when purchased. These certificates of deposit matured in January 2020.