Investments

9 Months Ended

Sep. 30, 2012

Investments

Investments

10.Investments

Refer to Note 1 within the footnotes to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for a detailed discussion of the accounting policies related to the Company’s investments included within the policy titled “Financial Instruments 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)	September 30, 2012		December 31, 2011
Fair Value
Investment in FATV	$	16,015	$	15,863
Employee Investment Funds, net of Company’s ownership interest	1,238		1,247
Other investment	2,000		1,200
Total Investments	$	19,253	$	18,310

Investment gains and losses are comprised of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands of dollars)	2012		2011		2012		2011
Investments (realized and unrealized gains/(losses))	$	163	$	2,857	$	156	$	2,539

The Company has an investment in FATV of approximately $16.0 million at September 30, 2012 and $15.9 million at December 31, 2011.  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.  There are no material open commitments to fund this portfolio at September 30, 2012.  At September 30, 2012 and December 31, 2011, total Partnership capital for all investors in FATV equaled $63.3 million and $63.7 million, respectively.  The Partnership was scheduled to end in July 2011, subject to extension by the vote of a majority of the limited partners, as provided in the limited partnership agreement applicable to the Partnership (the “Partnership Agreement”).  The term of the Partnership was extended pursuant to such provision and is now scheduled to terminate on July 19, 2013.  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 September 30, 2012 and December 31, 2011.  The Company’s share of management fee income derived from the Partnership for the three months ended September 30, 2012 and 2011 were $0.2 million and $0.2 million, respectively, and were $0.5 million and $0.5 million for the nine months ended September 30, 2012 and 2011, respectively.

The Employee Investment Funds (“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 $1.2 million and $1.2 million of Investments and a corresponding Payable to others being recorded in the Consolidated Statements of Financial Condition as of September 30, 2012 and December 31, 2011, respectively.  Management fees are not material to the Company.

The other investment is an investment in a privately held company.