Investments

6 Months Ended

Jun. 30, 2019

INVESTMENTS

Money Market Investments. As of June 30, 2019 and December 31, 2018, the Company had money market investments of $71.0 million and $75.5 million, respectively, that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets.

Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following:



	As of
	June 30, 2019			December 31, 2018
(in thousands)	June 30, 2019			December 31, 2018
Total cost	$	282,349		$	282,563
Gross unrealized gains	235,885			216,111
Gross unrealized losses	(135		)	(2,284		)
Total Fair Value	$	518,099		$	496,390

The Company purchased $7.5 million of marketable equity securities during the first six months of 2019. There were no purchases of marketable equity securities during the first six months of 2018.

During the first six months of 2019, the gross cumulative realized gains from the sales of marketable equity securities were $9.7 million. The total proceeds from such sales were $17.2 million. During the first six months of 2018, the gross cumulative realized gains from the sales of marketable equity securities were $37.3 million. The total proceeds from such sales were $66.7 million.

The gain (loss) on marketable equity securities comprised the following:



	Three Months Ended June 30					Six Months Ended June 30
(in thousands)	2019		2018			2019			2018
Gain (loss) on marketable equity securities, net	$	7,791	$	(2,554	)	$	31,857		$	(16,656	)
Less: Net (gains) losses in earnings from marketable equity securities sold and donated	2		1,660			(2,980		)	4,271
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period	$	7,793	$	(894	)	$	28,877		$	(12,385	)

Investments in Affiliates. As of June 30, 2019, the Company held an approximate 11% interest in Intersection Holdings, LLC, and in several other affiliates; GHG held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN). For the three and six months ended June 30, 2019, the Company recorded $2.3 million and $4.6 million, respectively in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 2018, the Company recorded $3.3 million and $7.0 million, respectively, in revenue for services provided to the affiliates of GHG.

In the second quarter of 2019, the Company made an investment in Framebridge, a custom framing service company based in Washington, DC. The Company accounts for this investment under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet. Timothy J. O’Shaughnessy, President and Chief Executive Officer of Graham Holdings Company, is a personal investor in Framebridge and serves as Chairman of the Board.

In February 2019, the Company sold its interest in Gimlet Media. In connection with this sale, the Company recorded a gain of $29.0 million in the first quarter of 2019. The total proceeds from the sale were $33.5 million.

Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. KIHL agreed to loan the joint venture £25 million, of which £16 million was advanced as of December 31, 2017. In the second quarter of 2018, KIHL advanced a final amount of £6 million in additional funding to the joint venture under this agreement, bringing the total amount advanced to £22 million. The loan is repayable over 25 years at an interest rate of 7% and the loan is guaranteed by the University of York.

Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $34.5 million and $30.6 million as of June 30, 2019 and December 31, 2018, respectively.