INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Summarized financial information of the Company’s equity-method investments is set forth below.



	As of
Statement of Financial Condition:	June 30, 2017		December 31, 2016
Assets:
Cash and cash-equivalents	$	3,499,510	$	3,713,045
Investments, at fair value	40,725,667		43,084,842
Other assets	1,820,104		1,994,304
Total assets	$	46,045,281	$	48,792,191
Liabilities and Capital:
Debt obligations	$	8,203,642	$	7,372,063
Other liabilities	2,160,821		2,028,065
Total liabilities	10,364,463		9,400,128
Total capital	35,680,818		39,392,063
Total liabilities and capital	$	46,045,281	$	48,792,191



	Three Months Ended June 30,						Six Months Ended June 30,
Statements of Operations:	2017			2016			2017			2016
Revenues / investment income	$	557,070		$	482,265		$	1,077,680		$	1,025,099
Interest expense	(57,857		)	(41,640		)	(104,871		)	(80,169		)
Other expenses	(201,099		)	(217,303		)	(412,257		)	(437,739		)
Net realized and unrealized gain on investments	942,747			550,657			1,867,298			838,724
Net income	$	1,240,861		$	773,979		$	2,427,850		$	1,345,915

Corporate investments consisted of the following:



	As of
Corporate Investments:	June 30, 2017		December 31, 2016

Equity-method Investments:
Funds	$	891,501	$	981,209
Companies	25,188		34,932
Other investments, at fair value	99,389		107,591
Total corporate investments	$	1,016,078	$	1,123,732

Investment

The components of investment income are set forth below:



	Three Months Ended June 30,					Six Months Ended June 30,
Investment Income:	2017			2016		2017			2016

Equity-method Investments:
Funds	$	36,562		$	10,259	$	69,483		$	29,219
Companies	18,829			16,682		34,723			31,789
Other investments, at fair value	(6,285		)	14,059		(4,649		)	9,439
Total investment income	$	49,106		$	41,000	$	99,557		$	70,447

Investments, at Fair Value

The following table summarizes net gains (losses) attributable to the Company’s other investments:



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016

Realized gain (loss)	$	59		$	105	$	1,555		$	(2,389	)
Net change in unrealized gain (loss)	(6,344		)	13,954		(6,204		)	11,828
Total gain (loss)	$	(6,285	)	$	14,059	$	(4,649	)	$	9,439

Investments held and securities sold short by the consolidated funds are summarized below:



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
United States:
Debt securities:
Consumer discretionary	$	688,630	$	628,621	14.5	%	16.5	%
Consumer staples	105,482		123,395		2.2		3.2
Energy	80,016		55,655		1.7		1.5
Financials	286,549		182,685		6.1		4.8
Government	5,827		5,234		0.1		0.1
Health care	433,737		337,138		9.2		8.9
Industrials	442,309		379,122		9.4		10.0
Information technology	426,966		272,637		9.0		7.2
Materials	266,851		237,417		5.6		6.2
Telecommunication services	167,012		93,893		3.5		2.5
Utilities	119,807		76,920		2.5		2.0
Total debt securities (cost: $3,018,892 and $2,378,759 as of June 30, 2017 and December 31, 2016, respectively)	3,023,186		2,392,717		63.8		62.9
Equity securities:
Consumer discretionary	735		711		0.0		0.0
Consumer staples	209		—		0.0		—
Energy	1,845		2,002		0.1		0.1
Financials	5,881		3,977		0.1		0.1
Health care	305		343		0.0		0.0
Industrials	326		1		0.0		0.0
Materials	167		691		0.0		0.0
Telecommunication services	281		—		0.0		—
Total equity securities (cost: $11,113 and $5,462 as of June 30, 2017 and December 31, 2016, respectively)	9,749		7,725		0.2		0.2



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
Europe:
Debt securities:
Consumer discretionary	$	447,928	$	374,627	9.5	%	9.8	%
Consumer staples	120,491		92,750		2.5		2.4
Energy	2,400		13,274		0.1		0.3
Financials	17,239		13,822		0.4		0.4
Government	3,381		1,996		0.1		0.1
Health care	248,510		210,078		5.2		5.5
Industrials	70,524		54,578		1.5		1.4
Information technology	38,683		23,832		0.8		0.6
Materials	255,943		226,961		5.4		6.0
Telecommunication services	195,500		214,182		4.1		5.6
Utilities	1,356		—		0.0		—
Total debt securities (cost: $1,386,171 and $1,214,068 as of June 30, 2017 and December 31, 2016, respectively)	1,401,955		1,226,100		29.6		32.1
Equity securities:
Financials	2,730		1,605		0.1		0.0
Total equity securities (cost: $1,872 and $1,494 as of June 30, 2017 and December 31, 2016, respectively)	2,730		1,605		0.1		0.0
Asia and other:
Debt securities:
Consumer discretionary	23,605		3,145		0.4		0.1
Consumer staples	750		5,994		0.0		0.2
Energy	7,297		9,570		0.2		0.3
Financials	2,519		—		0.1		—
Government	1,003		1,506		0.0		0.0
Health care	14,039		1,245		0.3		0.0
Industrials	11,233		15,450		0.2		0.4
Information technology	443		409		0.0		0.0
Materials	7,770		10,245		0.2		0.3
Telecommunication services	9,253		4,809		0.2		0.1
Utilities	—		928		—		0.0
Total debt securities (cost: $83,243 and $57,400 as of June 30, 2017 and December 31, 2016, respectively)	77,912		53,301		1.6		1.4



	Fair Value as of						Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2017			December 31, 2016			June 30, 2017		December 31, 2016
Asia and other:
Equity securities:
Consumer discretionary	$	13,510		$	7,639		0.3	%	0.2	%
Consumer staples	4,910			3,786			0.1		0.1
Energy	6,756			6,978			0.1		0.2
Financials	88,825			44,328			1.9		1.2
Health care	414			—			0.0		—
Industrials	42,508			21,564			0.9		0.6
Information technology	15,585			16,642			0.3		0.4
Materials	45,674			19,697			0.9		0.5
Telecommunication services	2,971			4,296			0.1		0.1
Utilities	3,001			1,856			0.1		0.1
Total equity securities (cost: $206,335 and $118,292 as of June 30, 2017 and December 31, 2016, respectively)	224,154			126,786			4.7		3.4
Total debt securities	4,503,053			3,672,118			95.0		96.4
Total equity securities	236,633			136,116			5.0		3.6
Total investments, at fair value	$	4,739,686		$	3,808,234		100.0	%	100.0	%
Securities Sold Short
Equity securities (proceeds: $78,187 and $41,541 as of June 30, 2017 and December 31, 2016, respectively)	$	(81,086	)	$	(41,016	)

Net Gains (Losses) from Investment Activities of Consolidated Funds

The following table summarizes net gains (losses) from investment activities:



	Three Months Ended June 30,
	2017						2016
	Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments			Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments

Investments and other financial instruments	$	1,497		$	5,193		$	8,651		$	17,740
CLO liabilities ⁽¹⁾	—			23,517			—			(24,172		)
Foreign-currency forward contracts ⁽²⁾	(569		)	(96		)	(298		)	849
Total-return and interest-rate swaps ⁽²⁾	(722		)	(237		)	(907		)	222
Options and futures ⁽²⁾	29			76			(764		)	60
Total	$	235		$	28,453		$	6,682		$	(5,301	)



	Six Months Ended June 30,
	2017						2016
	Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments			Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments

Investments and other financial instruments	$	2,236		$	8,929		$	12,322		$	27,423
CLO liabilities ⁽¹⁾	—			43,348			—			(52,374		)
Foreign-currency forward contracts ⁽²⁾	(390		)	(410		)	(500		)	457
Total-return and interest-rate swaps ⁽²⁾	(1,468		)	998			(890		)	(1,396		)
Options and futures ⁽²⁾	(2,015		)	266			(849		)	(83		)
Total	$	(1,637	)	$	53,131		$	10,083		$	(25,973	)


(1)	Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information.


(2)	Please see note 6 for additional information.

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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