Investments

6 Months Ended

Jun. 30, 2011

Investments

Investments

10. Investments

Refer to Note 1 within the footnotes to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, for a detailed discussion of the accounting policies related to the Company’s investments included within the policy titled “Securities Transactions and Investments” and Note 8 herein for additional information regarding valuation techniques and inputs related to the Company’s investment in FATV.  The Company’s investment portfolio includes interests in publicly and privately held companies and private equity securities.  Information regarding these investments has been aggregated and is presented below.

(In thousands of dollars)	June 30, 2011		December 31, 2010
Fair Value
Investment in FATV	$	14,840	$	16,800
Consolidation of EIF, net of Company’s ownership interest	1,258		1,284
Total Investments	$	16,098	$	18,084

Investment gains and losses are comprised of the following:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In thousands of dollars)	2011		2010			2011			2010
Investments (realized and unrealized gains/(losses))	$	368	$	(1,662	)	$	(318	)	$	(1,512	)

The Company has an investment in FATV of approximately $14.8 million and approximately $16.8 million at June 30, 2011 and December 31, 2010, respectively.  FATV’s primary purpose is to provide investment returns consistent with the risk of investing in venture capital.  FA Technology Ventures Corporation, a wholly-owned subsidiary of the Company, is the investment advisor to FATV.  As of June 30, 2011, the Company had a commitment to invest an additional $0.2 million in FATV.  At June 30, 2011 and December 31, 2010, total Partnership capital for all investors in FATV equaled $57.3 million and $65.0 million, respectively.  The Partnership is scheduled to terminate in July 2011, unless extended for a maximum period of 2 additional years.  Refer to Note 25 herein for additional information.  The Partnership is considered a variable interest entity. The Company is not the primary beneficiary, due to other investors’ level of investment in the Partnership.  Accordingly, the Company has not consolidated the Partnership in these consolidated financial statements, but has only recorded the fair value of its investment, which also represented the Company’s maximum exposure to loss in the Partnership at June 30, 2011 and December 31, 2010.  The Company’s share of management fee income derived from the Partnership for the three months ended June 30, 2011 and 2010 were $0.2 million and $0.2 million, respectively, and were $0.3 million and $0.3 million for the six months ended June 30, 2011 and 2010, respectively.

The EIF are limited liability companies, established by the Company for the purpose of having select employees invest in private equity securities.  The EIF is managed by Broadpoint Management Corp., a wholly-owned subsidiary of the Company, which has contracted with FATV to act as an investment advisor with respect to funds invested in parallel with the Partnership.  The Company has consolidated EIF resulting in approximately $1.3 million of Investments and a corresponding Payable to others being recorded in the Consolidated Statements of Financial Condition as of June 30, 2011 and December 31, 2010, respectively.  Management fees are not material.