B. Investment in Securities

Investments in securities at March 31, 2013, December 31, 2012 and March 31, 2012 consisted of the following:

	March 31, 2013		December 31, 2012		March 31, 2012
	Cost	Fair Value	Cost	Fair Value	Cost	Fair Value
	(In thousands)
Trading securities:
Government obligations	$49,970	$49,990	$42,973	$42,989	$48,624	$48,630
Common stocks	119,918	139,503	125,697	138,478	156,206	170,224
Mutual funds	1,073	1,655	1,072	1,484	1,086	1,495
Other investments	315	1,179	328	630	601	571
Total trading securities	171,276	192,327	170,070	183,581	206,517	220,920

Available for sale securities:
Common stocks	14,312	35,225	14,822	33,560	16,158	34,578
Mutual funds	1,014	1,734	1,105	1,702	1,362	2,109
Total available for sale securities	15,326	36,959	15,927	35,262	17,520	36,687

Total investments in securities	$186,602	$229,286	$185,997	$218,843	$224,037	$257,607

Securities sold, not yet purchased at March 31, 2013, December 31, 2012 and March 31, 2012 consisted of the following:

	March 31, 2013		December 31, 2012		March 31, 2012
	Cost	Fair Value	Cost	Fair Value	Cost	Fair Value
Trading securities:	(In thousands)
Common stocks	$5,163	$5,650	$2,593	$2,867	$9,016	$9,553
Other	86	727	184	269	21	104
Total securities sold, not yet purchased	$5,249	$6,377	$2,777	$3,136	$9,037	$9,657

Investments in sponsored registered investment companies at March 31, 2013, December 31, 2012 and March 31, 2012 consisted of the following:

	March 31, 2012		December 31, 2012		March 31, 2011
	Cost	Fair Value	Cost	Fair Value	Cost	Fair Value
	(In thousands)
Trading securities:
Mutual funds	$19	$17	$19	$20	$15	$17
Total trading securities	19	17	19	20	15	17

Available for sale securities:
Closed-end funds	31,014	60,895	35,868	58,511	36,546	58,721
Mutual funds	2,047	3,382	2,055	3,341	2,204	3,567
Total available for sale securities	33,061	64,277	37,923	61,852	38,750	62,288

Total investments in sponsored registered investment companies	$33,080	$64,294	$37,942	$61,872	$38,765	$62,305

Management determines the appropriate classification of debt and equity securities at the time of purchase and reevaluates such designation as of each balance sheet date. 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. A substantial portion of investments in securities is held for resale in anticipation of short-term market movements and therefore is 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 which are recorded as unrealized losses in the condensed consolidated statements of income.

The following table identifies all reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2013 (in thousands):

Amount			Affected Line Item in	Reason for
Reclassified			in the Statements	Reclassification
from AOCI			Of Income	from AOCI

$	597		Net gain from investments	Realized gain / (loss) on sale of securities
	150		Other operating expenses	Donation of securities
$	747		Income before income taxes
	(276)	)	Income tax provision
$	471		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. For the three months ended March 31, 2013 and 2012, the Company had transactions in equity derivatives which resulted in net gains of $$281,000 and net losses of $$29,000, respectively. At March 31, 2013, December 31, 2012 and March 31, 2012, we held derivative contracts on 222,000 equity shares, 1.2 million equity shares and 1.0 million equity shares, respectively, and the fair value was $$61,000, ($121,000) and $105,000, respectively; these are included in investments in securities in the condensed consolidated statements of financial condition. 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 in the condensed consolidated statements of income.

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 consolidated statements of financial position. 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 Position
	Gross		Gross Amounts		Net Amounts of
	Amounts of		Offset in the		Assets Presented
	Recognized		Statements of		in the Statements		Financial		Cash Collateral
	Assets		Financial Position		of Financial Position		Instruments		Received		Net Amount
Swaps:	(In thousands)
March 31, 2013	$	788	$	-	$	788	$	(703)	$	-	$	85
December 31, 2012		148		-		148		(132)		-		16
March 31, 2012	$	-	$	-	$	-	$	-	$	-	$	-

							Gross Amounts Not Offset in the
							Statements of Financial Position
	Gross		Gross Amounts		Net Amounts of
	Amounts of		Offset in the		Liabilities Presented
	Recognized		Statements of		in the Statements		Financial		Cash Collateral
	Liabilities		Financial Position		of Financial Position		Instruments		Received		Net Amount
Swaps:	(In thousands)
March 31, 2013	$	703	$	-	$	703	$	(703)	$	-	$	-
December 31, 2012		132		-		132		(132)		-		-
March 31, 2012	$	-	$	-	$	-	$	-	$	-	$	-

The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of March 31, 2013, December 31, 2012 and March 31, 2012:

	March 31, 2013
	Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In thousands)
Common stocks	$14,312	$20,913	$	$35,225
Closed-end Funds	31,014	29,884	(3)	60,895
Mutual funds	3,061	2,055		5,116
Total available for sale securities	$48,387	$52,852	($3)	$101,236

	December 31, 2012
	Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In thousands)
Common stocks	$14,822	$18,738	$	$33,560
Closed-end Funds	35,868	22,645	(2)	58,511
Mutual funds	3,160	1,883		5,043
Total available for sale securities	$53,850	$43,266	($2)	$97,114

	March 31, 2012
	Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In thousands)
Common stocks	$16,158	$18,420	$	$34,578
Closed-end Funds	36,546	22,189	(14)	58,721
Mutual funds	3,566	2,110		5,676
Total available for sale securities	$56,270	$42,719	($14)	$98,975

Unrealized changes in fair value, net of taxes, for the three months ended March 31, 2013 and March 31, 2012 of $6.0 million and $3.5 million in gains, respectively, have been included in other comprehensive income, a component of equity, at March 31, 2013 and March 31, 2012. Return of capital on available for sale securities was $0.6 million and $0.6 million for the three months ended March 31, 2013 and March 31, 2012, respectively. Proceeds from sales of investments available for sale were approximately $5.3 million and $0.5 million for the three months ended March 31, 2013 and March 31, 2012, respectively. For the three months ended March 31, 2013 and March 31, 2012, gross gains on the sale of investments available for sale amounted to $0.6 million and $0.3 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 March 31, 2013 or March 31, 2012. The basis on which the cost of a security sold is determined is 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:

March 31, 2013

December 31, 2012

March 31, 2012

Cost

Unrealized Losses

Fair Value

Cost

Unrealized Losses

Fair Value

Cost

Unrealized Losses

Fair Value

(in thousands)

Mutual Funds

$216

$(3)

$213

$73

$(2)

$71

$97

$(14)

$83

At December 31, 2012 and March 31, 2012, there was one holding in a loss position which was not deemed to be other-than-temporarily impaired due to the length of time that it had been in a loss position and because it passed scrutiny in our evaluation of issuer-specific and industry-specific considerations. In this specific instance, the investment at December 31, 2012 and March 31, 2012 was a closed-end fund with diversified holdings across multiple companies and across multiple industries. The one holding was impaired for one and ten consecutive months at December 31, 2012 and March 31, 2012, respectively. The value of this holding at both December 31, 2012 and March 31, 2012 was million.

At March 31, 2013, there were two 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 this specific instance, the investments at March 31, 2013 were closed-end funds with diversified holdings across multiple companies and across multiple industries. Both holdings were impaired for two consecutive months at March 31, 2013. The value of these holding at March 31, 2013 was million.

For the three months ended March 31, 2013 and 2012, there were no losses on available for sale securities deemed to be other than temporary.