Investments of Operating Entities and Consolidated Funds (Tables)

6 Months Ended

Jun. 30, 2014

As of June 30, 2014 and December 31, 2013, securities owned, at fair value consisted of the following:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
U.S. Government securities (a)	$	2,509	$	9
Preferred stock	2,324		324
Common stocks	343,867		176,939
Convertible bonds (b)	11,283		5,958
Corporate bonds (c)	199,985		121,372
Warrants and rights	4,231		5,912
Mutual funds	16,764		525
	$	580,963	$	311,039


(a)	As of June 30, 2014, maturities ranged from August 2014 to April 2016 and an interest rates ranged between 0% to 5.95%. As of December 31, 2013, the maturity was April 2016 with an interest rate of 5.95%.


(b)	As of June 30, 2014, maturities ranged from July 2014 to November 2014 and interest rates ranged between 4.00% to 10.00%. As of December 31, 2013, maturities ranged from May 2014 to October 2014 and interest rates ranged between 5.00% to 10.00% .


(c)	As of June 30, 2014, maturities ranged from September 2014 to February 2046 and interest rates ranged between 5.38% to 11.54%. As of December 31, 2013, maturities ranged from January 2014 to February 2046 and interest rates ranged between 3.38% to 11.75%.

Schedule of Derivative Instruments

The Company's long and short exposure to derivatives is as follows:



Receivable on derivative contracts	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Commodity Future	$	92	$	285
Cross Rate	—		22
Equity Swap (b)	55		70
Options (a)	44,896		9,698
	$	45,043	$	10,075

(a) As of June 30, 2014 and December 31, 2013, the Company had 58,555 and 71,129 contracts held, respectively.



Payable for derivative contracts	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Futures	$	11	$	275
Currency forwards	156		301
Equity and credit default swaps (b)	2,280		525
Options (a)	50,906		6,573
	$	53,353	$	7,674

(a) As of June 30, 2014 and December 31, 2013, the Company had 28,483 and 38,221 contracts held, respectively.

(b) The notional values of equity swaps classified as receivable on derivative contracts are $0.6 million and $0.2 million as of June 30, 2014 and December 31, 2013, respectively. The notional values of equity and credit default swaps classified as payable for derivative contracts are $23.0 million and $0.1 million as of June 30, 2014 and December 31, 2013, respectively.

The following tables present the gross and net derivative positions and the related offsetting amount, as of June 30, 2014 and December 31, 2013.



	Gross amounts recognized		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Amounts not offset on the condensed consolidated balance sheet but eligible for offsetting upon counterparty default (b)		Net amounts
	(dollars in thousands)
As of June 30, 2014
Receivable on derivative contracts, at fair value	$	45,043	$	—	$	45,043	$	45,043	$	—
Payable for derivative contracts, at fair value	53,353		—		53,353		53,353		—

As of December 31, 2013
Receivable on derivative contracts, at fair value	10,075		—		10,075		10,075		—
Payable for derivative contracts, at fair value	7,674		—		7,674		7,674		—


(a)	Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.


(b)	Includes the amount of collateral held or posted.

Schedule of Other Investments

As of June 30, 2014 and December 31, 2013, other investments included the following:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
(1) Portfolio Funds, at fair value	$	83,967	$	71,051
(2) Real estate investments, at fair value	2,262		2,088
(3) Equity method investments	27,904		25,966
(4) Lehman claims, at fair value	418		378
	$	114,551	$	99,483

Schedule of Other Investments, Portfolio Funds

The Portfolio Funds, at fair value as of June 30, 2014 and December 31, 2013, included the following:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
HealthCare Royalty Partners (a)(*)	$	10,947	$	9,741
HealthCare Royalty Partners II (a)(*)	6,578		4,961
Orchard Square Partners Credit Fund LP (b)(*)	14,093		12,674
Starboard Value and Opportunity Fund LP (c)(*)	18,888		17,495
Formation 8 Partners Fund I (d)	6,962		2,788
RCG LV Park Lane LLC (e)	707		678
RCGL 12E13th LLC (f)	611		558
RCG Longview Debt Fund V, L.P. (f)	14,560		11,979
Other private investment (g)	7,737		7,772
Other affiliated funds (h)(*)	2,884		2,405
	$	83,967	$	71,051

* These portfolio funds are affiliates of the Company.

The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 13.


(a)	HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.


(b)	Orchard Square Partners Credit Fund LP (formerly known as Ramius Global Credit Fund LP) has a quarterly redemption policy with a 60 day notice period and a 4% penalty on redemptions of investments of less than a year in duration.


(c)	Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days notice.


(d)	Formation 8 Partners Fund I is a private equity fund which invests in equity of early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.


(e)	RCG LV Park Lane LLC is a single purpose entity formed to participate in a joint venture which acquired, at a discount, the mortgage notes on a portfolio of multifamily real estate properties located in Birmingham, Alabama. RCG LV Park Lane LLC is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.


(f)	RCGL 12E13th LLC and RCG Longview Debt Fund V, L.P. are real estate private equity structures and therefore distributions will be made when the underlying investments are liquidated.


(g)	Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.


(h)	The majority of these funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.

Schedule of Other Investments, Equity Method

The following table summarizes equity method investments held by the Company:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
RCG Longview Debt Fund IV Management, LLC	$	659	$	1,533
RCG Longview Debt Fund V Partners, LLC	1,827		1,497
HealthCare Royalty GP, LLC	892		794
HealthCare Royalty GP II, LLC	1,114		840
HealthCare Royalty GP III, LLC	48		47
CBOE Stock Exchange, LLC	582		1,351
Starboard Value LP	15,783		14,263
RCG Longview Partners, LLC	2,438		1,839
RCG Urban American, LLC	369		316
RCG Urban American Management, LLC	309		238
RCG Longview Equity Management, LLC	160		292
Urban American Real Estate Fund II, LLC	2,110		1,785
RCG Kennedy House, LLC	532		502
Other	1,081		669
	$	27,904	$	25,966

Schedule of Securities Sold, Not yet Purchased

As of June 30, 2014 and December 31, 2013, securities sold, not yet purchased, at fair value consisted of the following:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Common stocks	$	235,534	$	130,899
Corporate bonds (a)	58		55
	$	235,592	$	130,954


(a)	As of June 30, 2014 and December 31, 2013, the maturity was January 2026 with an interest rate of 5.55%

Schedule of Repurchase Agreements

The following table represents the Company's securities sold under agreements to repurchase as of December 31, 2013:



	As of December 31, 2013
	(dollars in thousands)
Securities sold under agreements to repurchase
Agreements with Royal Bank of Canada bearing interest of 1.75% due June 2015 to November 2015	$	3,657
	$	3,657

The following tables present the gross and net repurchase agreements and the related offsetting amount, as of December 31, 2013.



As of December 31, 2013
	Gross amounts recognized		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Amounts not offset on the condensed consolidated balance sheet but eligible for offsetting upon counterparty default (b)		Net amounts
	(dollars in thousands)
Securities sold under agreements to repurchase	$	3,657	$	—	$	3,657	$	3,657	$	—


(a)	Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.


(b)	Includes the amount of collateral held or posted.

Schedule of Securities Borrowed Loaned

The following tables present the contractual gross and net securities borrowing and lending agreements and the related offsetting amount, as of June 30, 2014 and December 31, 2013.



	Gross amounts recognized		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Amounts not offset on the condensed consolidated balance sheet but eligible for offsetting upon counterparty default (b)		Net amounts

As of June 30, 2014
Securities borrowed	$	2,252,521	$	—	$	2,252,521	$	2,252,521	$	—
Securities loaned	2,250,562		—		2,250,562		2,250,562		—

As of December 31, 2013
Securities borrowed	927,773		—		927,773		927,773		—
Securities loaned	918,577		—		918,577		918,577		—


(a)	Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.


(b)	Includes the amount of cash collateral held/posted.

Operating Companies [Member]

Investment Holdings [Line Items]

Schedule of Results of Operations, Equity Method Investments



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		203
	(dollars in thousands)
Revenues	$	4,985	$	2,948	$	6,739	$	9,522
Expenses	—		—		—		—
Net realized and unrealized gains (losses)	49		109		54		191
Net Income	$	5,034	$	3,057	$	6,793	$	9,713

Consolidated Funds

Investment Holdings [Line Items]

Schedule of Other Investments

As of June 30, 2014 and December 31, 2013 other investments, at fair value, held by the Consolidated Funds are comprised of:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
(1) Portfolio Funds	$	194,474	$	182,638
(2) Lehman claims	4,090		4,842
	$	198,564	$	187,480

Schedule of Other Investments, Portfolio Funds

As of June 30, 2014 and December 31, 2013, investments in Portfolio Funds, at fair value, included the following:



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Investments of Enterprise LP	$	145,371	$	155,530
Investments of Merger Fund	49,103		26,963
Investments of consolidated fund of funds	—		145
	$	194,474	$	182,638

Enterprise Master

Investment Holdings [Line Items]

Schedule of Securities Owned

Securities owned by Enterprise Master, at fair value



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Bank debt	$	6	$	5
Common stock	2,515		2,677
Preferred stock	973		973
Private equity	409		406
Restricted stock	124		124
Rights	2,516		2,528
Trade claims	128		128
	$	6,671	$	6,841

Schedule of Derivative Instruments

Derivative contracts, at fair value, owned by Enterprise Master, net



	As of June 30, 2014		As of December 31, 2013
Description	(dollars in thousands)
Currency forwards	$	—	$	(21	)
	$	—	$	(21	)

Schedule of Other Investments, Portfolio Funds

Portfolio Funds, owned by Enterprise Master, at fair value



		As of June 30, 2014		As of December 31, 2013
	Strategy	(dollars in thousands)
RCG Longview Equity Fund, LP*	Real Estate	$	9,031	$	8,470
RCG Longview II, LP*	Real Estate	760		800
RCG Longview Debt Fund IV, LP*	Real Estate	9,360		17,641
RCG Longview, LP*	Real Estate	423		319
RCG Soundview, LLC*	Real Estate	442		442
RCG Urban American Real Estate Fund, L.P.*	Real Estate	1,128		1,812
RCG International Sarl*	Multi-Strategy	1,643		1,795
RCG Special Opportunities Fund, Ltd*	Multi-Strategy	85,924		82,119
RCG Endeavour, LLC*	Multi-Strategy	4		6
RCG Energy, LLC *	Energy	3,281		2,842
RCG Renergys, LLC*	Energy	1		1
Other Private Investments	Various	13,113		12,952
Real Estate Investments	Real Estate	16,228		15,024
		$	141,338	$	144,223


*	Affiliates of the Company.

Merger Master

Investment Holdings [Line Items]

Schedule of Securities Owned

Securities owned by Merger Master, at fair value



	As of June 30, 2014		As of December 31, 2013
	(dollars in thousands)
Common stocks	$	81,667	$	33,901
Corporate bond (a)	16,059		14,444
Options	1,411		200
	$	99,137	$	48,545


(a)	As of June 30, 2014, maturities ranged from February 2017 to October 2022 and interest rates ranged between 5.38% and 9.75%. As of December 31, 2013, maturities ranged from April 2016 to October 2020 and interest rates ranged between 7.00% and 10.88%.

Schedule of Derivative Instruments

Derivative contracts, at fair value, owned by Merger Master, net



	As of June 30, 2014			As of December 31, 2013
Description	(dollars in thousands)
Currency forwards	$	(22	)	$	(10	)
Options	(473		)	(54		)
Equity swaps	(585		)	(92		)
	$	(1,080	)	$	(156	)