B. Investment in Securities

Investments in securities at June 30, 2015, December 31, 2014 and June 30, 2014 consisted of the following:

	June 30, 2015				December 31, 2014				June 30, 2014
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Government obligations	$	6,998	$	7,000	$	18,994	$	18,996	$	23,996	$	23,998
Common stocks		75,995		93,874		170,977		195,029		124,502		156,522
Mutual funds		2,505		3,623		2,432		3,498		2,418		3,532
Other investments		505		789		743		1,704		532		694
Total trading securities		86,003		105,286		193,146		219,227		151,448		184,746

Available for sale securities:
Common stocks		13,578		37,429		13,637		38,942		15,009		39,334
Mutual funds		627		1,293		681		1,368		700		1,516
Total available for sale securities		14,205		38,722		14,318		40,310		15,709		40,850

Total investments in securities	$	100,208	$	144,008	$	207,464	$	259,537	$	167,157	$	225,596

Securities sold, not yet purchased at June 30, 2015, December 31, 2014 and June 30, 2014 consisted of the following:

	June 30, 2015				December 31, 2014				June 30, 2014
	Proceeds		Fair Value		Proceeds		Fair Value		Proceeds		Fair Value
Trading securities:	(In thousands)
Common stocks	$	9,705	$	9,715	$	9,835	$	9,960	$	11,662	$	13,861
Other investments		3		110		1		635		170		468
Total securities sold, not yet purchased	$	9,708	$	9,825	$	9,836	$	10,595	$	11,832	$	14,329

Investments in sponsored registered investment companies at June 30, 2015, December 31,2014 and June 30, 2014 consisted of the following:

	June 30, 2015				December 31, 2014				June 30, 2014
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Mutual funds	$	42,416	$	45,406	$	1	$	1	$	19	$	14
Total trading securities		42,416		45,406		1		1		19		14

Available for sale securities:
Closed-end funds		62,780		77,616		21,962		36,323		21,531		37,138
Mutual funds		1,887		3,283		1,898		3,213		1,931		3,639
Total available for sale securities		64,667		80,899		23,860		39,536		23,462		40,777

Total investments in sponsored
registered investment companies	$	107,083	$	126,305	$	23,861	$	39,537	$	23,481	$	40,791

Management determines the appropriate classification of debt and equity securities at the time of purchase and reevaluates such designation as of the date of each consolidated statement of financial condition. Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents. The portion of investments in securities held for resale in anticipation of short-term market movements are classified as trading securities. Trading securities are stated at fair value, with any unrealized gains or losses reported in current period earnings. Available for sale (“AFS”) investments are stated at fair value, with any unrealized gains or losses, net of taxes, reported as a component of equity except for losses deemed to be other than temporary (“OTT”) which are recorded as realized losses in the condensed consolidated statements of income.

The following table identifies all reclassifications out of accumulated other comprehensive income ("AOCI") into income for the three and six months ended June 30, 2015 and 2014 (in thousands):

Amount							Affected Line Items	Reason for
Reclassified							in the Statements	Reclassification
from AOCI							Of Income	from AOCI
Three months ended June 30,
2015				2014
	$	5		$	1,551		Net gain/(loss) from investments	Realized gain on sale of AFS securities
		35			498		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		-			(69	)	Net gain/(loss) from investments	OTT impairment of AFS securities
		40			1,980		Income before income taxes
		(15	)		(733	)	Income tax provision
	$	25		$	1,247		Net income

Amount							Affected Line Items	Reason for
Reclassified							in the Statements	Reclassification
from AOCI							Of Income	from AOCI
Six months ended June 30,
		2015			2014
	$	30		$	3,163		Net gain/(loss) from investments	Realized gain on sale of AFS securities
		35			3,639		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		-			(69	)	Net gain/(loss) from investments	OTT impairment of AFS securities
		65			6,733		Income before income taxes
		(24	)		(2,491	)	Income tax provision
	$	41		$	4,242		Net income

The Company recognizes all derivatives as either assets or liabilities measured at fair value and includes them in either investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition. From time to time, the Company and/or the partnerships and offshore funds that the Company consolidates will enter into hedging transactions to manage their exposure to foreign currencies and equity prices related to their proprietary investments. At June 30, 2015, December 31, 2014 and June 30, 2014, we held derivative contracts on 288,000 equity shares, 3.8 million equity shares and 1.9 million equity shares, respectively, that are included in investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition. We had two, one and one foreign exchange contracts outstanding at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, that are included in receivable from brokers or payable to brokers on the condensed consolidated statements of financial condition. Aside from one foreign exchange contract, these transactions are not designated as hedges for accounting purposes, and therefore changes in fair values of these derivatives are included in net gain/(loss) from investments on the condensed consolidated statements of income. The one foreign exchange contract that is designated as a hedge was for a short of British Pounds to hedge the long investment that we have in our London Stock Exchange listed Gabelli Value Plus+ Trust Ltd. closed-end fund which is denominated in British Pounds. As the underlying investment that is being hedged is an available for sale security, the portion of the change in value of the closed-end fund that is currency related is recorded in net gain/(loss) from investments on the condensed consolidated statements of income and not in accumulated comprehensive income.

The following tables identify the fair values and gains and losses of all derivatives held by the Company (in thousands):

	Asset Derivatives Fair Value							Liability Derivatives Fair Value
	Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2014		Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2014
Derivatives designated as hedging instruments under FASB ASC 815-20
Foreign exchange contracts	Receivable from brokers	$	-	$	-	$	-	Payable to brokers	$	41,676	$	-	$	-
Sub total		$	-	$	-	$	-		$	41,676	$	-	$	-
Derivatives Not Designated As Hedging Instruments Under Fasb Asc 815-20
Equity contracts	Investments in securities	$	174	$	896	$	156	Securities sold, not yet purchased	$	110	$	635	$	456
Foreign exchange contracts	Receivable from brokers		-		-		-	Payable to brokers		5,103		5,470		6,823
Sub total		$	174	$	896	$	156		$	5,213	$	6,105	$	7,279
Total derivatives		$	174	$	896	$	156		$	46,889	$	6,105	$	7,279

Type of Derivative	Income Statement Location	Three Months ended							Six Months ended
		June 30, 2015				June 30, 2014			June 30, 2015				June 30, 2014
Foreign exchange contracts	Net gain/(loss) from investments		$	(697	)		$	53		$	(100	)		$	59
Equity contracts	Net gain/(loss) from investments			41				120			172				(167	)
Total			$	(656	)		$	173		$	72			$	(108	)

The Company is a party to enforceable master netting arrangements for swaps entered into as part of the investment strategy of the Company’s proprietary portfolio. They are typically not used as hedging instruments. These swaps, while settled on a net basis with the counterparties, major U.S. financial institutions, are shown gross in assets and liabilities on the condensed consolidated statements of financial condition. The swaps have a firm contract end date and are closed out and settled when each contract expires.

							Gross Amounts Not Offset in the
							Statements of Financial Condition
	Gross		Gross Amounts		Net Amounts of
	Amounts of		Offset in the		Assets Presented
	Recognized		Statements of		in the Statements of		Financial			Cash Collateral
	Assets		Financial Condition		Financial Condition		Instruments			Received		Net Amount
Swaps:	(in thousands)
June 30, 2015	$	174	$	-	$	174	$	(107	)	$	-	$	67
December 31, 2014		896		-		896		(634	)		-		262
June 30, 2014	$	156	$	-	$	156	$	(156	)	$	-	$	-

							Gross Amounts Not Offset in the
							Statements of Financial Condition
	Gross		Gross Amounts		Net Amounts of
	Amounts of		Offset in the		Liabilities Presented
	Recognized		Statements of		in the Statements of		Financial			Cash Collateral
	Liabilities		Financial Condition		Financial Condition		Instruments			Pledged		Net Amount
Swaps:	(in thousands)
June 30, 2015	$	107	$	-	$	107	$	(107	)	$	-	$	-
December 31, 2014		634		-		634		(634	)		-		-
June 30, 2014	$	205	$	-	$	205	$	(156	)	$	-	$	49

The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of June 30, 2015, December 31, 2014 and June 30, 2014:

	June 30, 2015
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(In thousands)
Common stocks	$	13,578	$	23,851	$	-		$	37,429
Closed-end Funds		62,780		14,864		(28	)		77,616
Mutual funds		2,514		2,096		(34	)		4,576
Total available for sale securities	$	78,872	$	40,811	$	(62	)	$	119,621

	December 31, 2014
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(In thousands)
Common stocks	$	13,637	$	25,305	$	-		$	38,942
Closed-end Funds		21,962		14,398		(37	)		36,323
Mutual funds		2,579		2,030		(28	)		4,581
Total available for sale securities	$	38,178	$	41,733	$	(65	)	$	79,846

	June 30, 2014
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Common stocks	$	15,009	$	24,325	$	-	$	39,334
Closed-end Funds		21,531		15,607		-		37,138
Mutual funds		2,631		2,524		-		5,155
Total available for sale securities	$	39,171	$	42,456	$	-	$	81,627

Unrealized changes in fair value, net of taxes, for the three months ended June 30, 2015 and June 30, 2014 of ($0.3) million in losses and ($1.7) million in losses, respectively, have been included in other comprehensive income, a component of equity, at June 30, 2015 and June 30, 2014. Return of capital on available for sale securities was $35,000 and $0.2 million for the three months ended June 30, 2015 and June 30, 2014, respectively. Proceeds from sales of investments available for sale were approximately $0.9 million and $2.6 million for the three months ended June 30, 2015 and June 30, 2014, respectively. For the three months ended June 30, 2015 and June 30, 2014, gross gains on the sale of investments available for sale amounted to $5,000 and $1.6 million, respectively, and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income. There were no losses on the sale of investments available for sale for the three months ended June 30, 2015 or June 30, 2014. Unrealized changes in fair value, net of taxes, for the six months ended June 30, 2015 and June 30, 2014 of $(0.7) million in losses and $(4.4) million in losses, respectively, have been included in other comprehensive income, a component of equity, at June 30, 2015 and June 30, 2014. Return of capital on available for sale securities was $0.3 million and $0.6 million for the six months ended June 30, 2015 and June 30, 2014, respectively. Proceeds from sales of investments available for sale were approximately $1.1 million and $6.5 million for the six months ended June 30, 2015 and June 30, 2014, respectively. For the six months ended June 30, 2015 and June 30, 2014, gross gains on the sale of investments available for sale amounted to $30,000 and $3.2 million, respectively, and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income. There were no losses on the sale of investments available for sale for the six months ended June 30, 2015 or June 30, 2014. The basis on which the cost of a security sold is determined using specific identification.

Investments classified as available for sale that are in an unrealized loss position for which other-than-temporary impairment has not been recognized consisted of the following:

	June 30, 2015							December 31, 2014							June 30, 2014
			Unrealized							Unrealized							Unrealized
	Cost		Losses			Fair Value		Cost		Losses			Fair Value		Cost		Losses		Fair Value
(in thousands)
Cosed-end funds	$	146	$	(28	)	$	118	$	812	$	(37	)	$	775	$	-	$	-	$	-
Mutual Funds		303		(34	)		269		303		(28	)		275		-		-		-
Total	$	449	$	(62	)	$	387	$	1,115	$	(65	)	$	1,050	$	-	$	-	$	-

At June 30, 2015, there were three holdings in loss positions which were not deemed to be other-than-temporarily impaired due to the length of time that they had been in a loss position and because they passed scrutiny in our evaluation of issuer-specific and industry-specific considerations. In these specific instances, the investments at June 30, 2015 were mutual funds and closed-end funds with diversified holdings across multiple companies and across multiple industries. One holding was impaired for one month, one holding was impaired for eight months and one holding was impaired for ten months at June 30, 2015. The value of these holdings at June 30, 2015 was $0.4 million.

At December 31, 2014, there were four holdings in loss positions which were not deemed to be other-than-temporarily impaired due to the length of time that they had been in a loss position and because they passed scrutiny in our evaluation of issuer-specific and industry-specific considerations. In these specific instances, the investments at December 31, 2014 were mutual funds and closed-end funds with diversified holdings across multiple companies and across multiple industries. One holding was impaired for one month, one for three months and two for four months at December 31, 2014. The value of these holdings at December 31, 2014 was $1.1 million.

At June 30, 2014, there were no holdings in loss positions which were not deemed to be other-than-temporarily impaired.

There were no losses recognized on AFS securities for the three or six months ended June 30, 2015. For the three and six months ended June 30, 2014, there were $69,000 of losses on available for sale securities deemed to be other than temporary and a loss has been recorded in net gain from investments.