Investments

Investments primarily comprise strategic investments and deferred compensation investments. Investments consist of the following (in thousands):



	September 30, 2016		December 31, 2015
Strategic investments:
Investments accounted for under the equity method	$	87,099	$	86,853
Investments held at fair value	2,093		1,814
Investments held at adjusted cost	2,293		8,746
Total strategic investments	91,485		97,413
Other investments	2,290		1,530
Total investments	$	93,775	$	98,943

As of September 30, 2016, the aggregate market value of the Company's investment in Bats was approximately $398.7 million based on the closing stock price on the Bats BZX Exchange, Inc. on that date.

In the second quarter of 2016, as part of the initial public offering of Bats, the Company sold 2.6 million shares of its investment in Bats for approximately $46.4 million after commissions. The Company recorded a pre-tax gain of $33.4 million from the sale, which is included in Investment income and other, net on the Consolidated Statements of Operations for the nine months ended September 30, 2016. Following the sale, and based on total shares outstanding of Bats (including non-voting shares) as of July 31, 2016 as reported by Bats in its most recent Quarterly Report on Form 10-Q, KCG retained an approximate 13.7% ownership stake in Bats. The Company continues to account for its investment in Bats under the equity method of accounting.

In the first quarter of 2016, one of the Company's investments held at adjusted cost made a distribution to its owners, including the Company. As a result of this distribution, the investment's carrying value was adjusted and the Company recognized a pre-tax gain of $2.3 million, which is included in Investment income and other, net on the Consolidated Statements of Operations for the nine months ended September 30, 2016.

For the three months ended September 30, 2016 and 2015, the Company recorded income of $3.1 million and $4.9 million, respectively, related to Investments accounted for under the equity method of accounting, which is recorded within Investment income and other, net in the Consolidated Statements of Operations. For the nine months ended September 30, 2016 and 2015, the Company recorded income of $9.9 million and $9.3 million, respectively, related to investments accounted for under the equity method. The Company's investments accounted for under the equity method are considered to be related parties. See Footnote 11 "Related Parties".