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Investments of Operating Entities and Consolidated Funds - Quarterly (Tables)
 9 Months Ended
Sep. 30, 2015
Investment Holdings [Line Items]  
Marketable Securities
As of September 30, 2015 and December 31, 2014, securities owned, at fair value consisted of the following:
 
As of September 30, 2015
 
As of December 31, 2014
 
(dollars in thousands)
U.S. Government securities (a)
$
3,015

 
$
2,010

Preferred stock
15,771

 
15,070

Common stocks
712,489

 
597,476

Convertible bonds (b)
1,129

 
900

Corporate bonds (c)
113,585

 
159,557

Warrants and rights
3,871

 
1,417

Mutual funds
14,825

 
15,776

 
$
864,685

 
$
792,206

(a)
As of September 30, 2015, maturities ranged from December 2015 to August 2016 with interest rates ranged between 0% to 5.95%. As of December 31, 2014, maturities ranged from May 2015 to April 2016 with interest rates ranged between 0% to 5.95%.
(b)
As of September 30, 2015, maturities ranged from July 2016 to March 2018 with interest rates ranged between 8% to 10.00%. As of December 31, 2014, the maturity was February 2015 with an interest rate of 10.00%.
(c)
As of September 30, 2015, maturities ranged from March 2016 to February 2046 and interest rates ranged between 3.17% to 21.74%. As of December 31, 2014, maturities ranged from February 2015 to February 2046 and interest rates ranged between 5.63% to 11.54%.
Schedule of Derivative Instruments
The Company's long and short exposure to derivatives is as follows:
Receivable on derivative contracts
As of September 30, 2015
 
As of December 31, 2014
 
Number of contracts / Notional Value
 
Fair value
 
Number of contracts / Notional Value
 
Fair value
 
(dollars in thousands)
Futures
$
4,679

 
$
68

 
$
3,041

 
$
75

Currency forwards
$
34,036

 
105

 
$
23,961

 
310

Equity swaps
$
52,000

 
470

 
$
12,904

 
251

Options other (a)
306,659

 
34,498

 
367,441

 
48,201

Foreign currency options
$
292,475

 
6,446

 
$
32,200

 
1,040

 
 
 
$
41,587

 
 
 
$
49,877

(a) Includes index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of September 30, 2015
 
As of December 31, 2014
 
Number of contracts / Notional Value
 
Fair value
 
Number of contracts / Notional Value
 
Fair value
 
(dollars in thousands)
Futures
$
32,423

 
$
381

 
$
2,213

 
$
33

Currency forwards
$
43,788

 
107

 
$
—

 
—

Equity and credit default swaps
$
45,193

 
2,615

 
$
18,352

 
1,603

Options other (a)
14,035

 
22,975

 
22,043

 
39,694

 
 
 
$
26,078

 
 
 
$
41,330


(a) Includes index, equity, commodity future and cash conversion options.
The following tables present the gross and net derivative positions and the related offsetting amount, as of September 30, 2015 and December 31, 2014.
 
 
 
 
 
 
 
Gross amounts not offset in the Statement of Financial Condition
 
 
 
Gross amounts recognized
 
Gross amounts offset on the Consolidated Statements of Financial Condition (a)
 
Net amounts included on the Consolidated Statements of Financial Condition
 
Financial instruments
 
Cash Collateral pledged (b)
 
Net amounts
 
(dollars in thousands)
As of September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Receivable on derivative contracts, at fair value
$
41,587

 
$
—

 
$
41,587

 
$
—

 
$
8,950

 
$
32,637

Payable for derivative contracts, at fair value
26,078

 
—

 
26,078

 
—

 
2,643

 
23,435

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Receivable on derivative contracts, at fair value
49,877

 
—

 
49,877

 
—

 
2,588

 
47,289

Payable for derivative contracts, at fair value
41,330

 
—

 
41,330

 
—

 
1,603

 
39,727

(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 September 30, 2015 and December 31, 2014, other investments included the following:
 
As of September 30, 2015
 
As of December 31, 2014
 
(dollars in thousands)
(1) Portfolio Funds, at fair value
$
108,509

 
$
103,466

(2) Real estate investments, at fair value
1,916

 
2,175

(3) Equity method investments
42,574

 
61,443

(4) Lehman claims, at fair value
335

 
380

 
$
153,334

 
$
167,464
Schedule of Other Investments, Portfolio Funds
The Portfolio Funds, at fair value as of September 30, 2015 and December 31, 2014, included the following:

As of September 30, 2015
 
As of December 31, 2014

(dollars in thousands)
HealthCare Royalty Partners (a)(*)
$
12,016

 
$
11,935

HealthCare Royalty Partners II (a)(*)
7,439

 
6,648

Orchard Square Partners Credit Fund LP (b)
4,473

 
11,532

Starboard Value and Opportunity Fund LP (c)(*)
20,914

 
21,792

Starboard Partners Fund LP (d)(*)
13,785

 
14,652

Starboard Leaders Fund LP (e)(*)
1,251

 
1,367

Formation8 Partners Fund I, L.P. (f)
17,364

 
11,283

Formation8 Partners Hardware Fund I, L.P. (g)
1,125

 
—

RCG LV Park Lane LLC (h) (*)
1,364

 
642

RCGL 12E13th LLC (i) (*)
632

 
638

RCG Longview Debt Fund V, L.P. (i) (*)
14,745

 
12,876

RCG LPP SME Co-Invest, L.P. (j) (*)
2,469

 
—

Other private investment (k)
6,591

 
7,324

Other affiliated funds (l)(*)
4,341

 
2,777

 
$
108,509

 
$
103,466

* 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 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)
Starboard Partners Fund LP permits redemptions on a semi-annual basis on 180 days prior written notice subsequent to an initial two year lock up.
(e)
Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days prior written notice at any time following the first anniversary of an investors initial capital contribution.
(f)
Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.
(g)
Formation8 Partners Hardware Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.
(h)
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.
(i)
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.
(j)
RCG LPP SME Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired two fully entitled residential development sites in the New York City metro area. RCG LPP SME Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.
(k)
Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.
(l)
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 September 30, 2015
 
As of December 31, 2014
 
(dollars in thousands)
RCG Longview Debt Fund IV Management, LLC
$
464

 
$
676

RCG Longview Debt Fund V Partners, LLC
3,988

 
2,684

HealthCare Royalty GP, LLC
980

 
973

HealthCare Royalty GP II, LLC
1,260

 
1,125

HealthCare Royalty GP III, LLC
71

 
62

CBOE Stock Exchange, LLC
568

 
611

Starboard Value LP
30,079

 
48,772

RCG Longview Partners, LLC
—

 
237

RCG Longview Management, LLC
1,287

 
1,117

RCG Urban American, LLC
122

 
422

RCG Urban American Management, LLC
379

 
379

RCG Longview Equity Management, LLC
250

 
316

Urban American Real Estate Fund II, LLC
1,975

 
2,329

RCG Kennedy House, LLC
268

 
509

Other
883

 
1,231

 
$
42,574

 
$
61,443

For the period ended September 30, 2015, two equity method investment held by the Company met the significance criteria as defined under applicable SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the three and nine months ended September 30, 2015 and 2014. The summarized income statement information for the Company's investments in the individually significant investees is as follows:
Other equity method investment
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(dollars in thousands)
Revenues
$
(3,216
)
 
$
13,258

 
$
8,249

 
$
21,956

Expenses
(2,033
)
 
(7,772
)
 
(1,927
)
 
(5,349
)
Net realized and unrealized gains (losses)
(155
)
 
(40
)
 
51

 
165

Net Income
$
(5,404
)
 
$
5,446

 
$
6,373

 
$
16,772
Schedule of Securities Sold, Not yet Purchased
As of September 30, 2015 and December 31, 2014, securities sold, not yet purchased, at fair value consisted of the following:
 
As of September 30, 2015
 
As of December 31, 2014
 
(dollars in thousands)
Common stocks
$
250,680

 
$
207,815

Corporate bonds (a)
59

 
60

 
$
250,739

 
$
207,875

(a)
As of September 30, 2015 and December 31, 2014, the maturity was January 2026 with an interest rate of 5.55%.
Securities Borrowed and Securities Loaned
Securities lending and borrowing transactions
The following tables present the contractual gross and net securities borrowing and lending agreements and the related offsetting amount, as of December 31, 2014. During the first quarter of 2015 this business was completely liquidated.
 
 
 
 
 
 
 
Gross amounts not offset in the Statement of Financial Condition
 
 
 
Gross amounts recognized
 
Gross amounts offset on the Consolidated Statements of Financial Condition (a)
 
Net amounts included on the Consolidated Statements of Financial Condition
 
Additional Amounts Available
 
Financial instruments
 
Cash Collateral pledged (b)
 
Net amounts
 
(dollars in thousands)
As of December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities borrowed
$
676,100

 
$
—

 
$
676,100

 
$
(15,655
)
 
$
(660,445
)
 
$
—

 
$
—

Securities loaned
682,493

 
—

 
682,493

 
(2,441
)
 
(680,052
)
 
—

 
—

(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.
Consolidated Funds  
Investment Holdings [Line Items]  
Schedule of Other Investments
Other investments, at fair value
As of September 30, 2015 and December 31, 2014 other investments, at fair value, held by the Consolidated Funds are comprised of:

As of September 30, 2015
 
As of December 31, 2014

(dollars in thousands)
(1) Portfolio Funds
$
255,896

 
$
188,884

(2) Lehman claims
—

 
493


$
255,896

 
$
189,377
Schedule of Other Investments, Portfolio Funds
Investments in Portfolio Funds, at fair value
As of September 30, 2015 and December 31, 2014, investments in Portfolio Funds, at fair value, included the following:

As of September 30, 2015
 
As of December 31, 2014

(dollars in thousands)
Investments of Enterprise LP
$
122,858

 
$
138,253

Investments of Merger Fund
60,432

 
50,631

Investments of Quadratic LLC
72,606

 
—


$
255,896

 
$
188,884
Enterprise Master  
Investment Holdings [Line Items]  
Schedule of Derivative Instruments
Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master
 
As of September 30, 2015
 
As of December 31, 2014
Description
(dollars in thousands)
Currency forwards
$
(4
)
 
$
64

 
$
(4
)
 
$
64
Schedule of Securities Owned
Securities owned by Enterprise Master, at fair value
 
As of September 30, 2015
 
As of December 31, 2014
 
(dollars in thousands)
Bank debt
$
—

 
$
20

Common stock
1,657

 
1,659

Preferred stock
626

 
576

Private equity
—

 
587

Restricted stock
124

 
124

Rights
2,715

 
2,802

Trade claims
128

 
128

 
$
5,250

 
$
5,896
Schedule of Other Investments, Portfolio Funds
Portfolio Funds, owned by Enterprise Master, at fair value
 
 
 
As of September 30, 2015
 
As of December 31, 2014
 
Strategy
 
(dollars in thousands)
RCG Longview Equity Fund, LP*
Real Estate
 
$
7,637

 
$
9,090

RCG Longview II, LP*
Real Estate
 
785

 
747

RCG Longview Debt Fund IV, LP*
Real Estate
 
3,999

 
5,348

RCG Longview, LP*
Real Estate
 
—

 
40

RCG Soundview, LLC*
Real Estate
 
452

 
452

RCG Urban American Real Estate Fund, L.P.*
Real Estate
 
648

 
1,161

RCG International Sarl*
Multi-Strategy
 
1,220

 
2,113

RCG Special Opportunities Fund, Ltd*
Multi-Strategy
 
89,303

 
92,405

RCG Energy, LLC *
Energy
 
1,398

 
2,294

RCG Renergys, LLC*
Energy
 
1

 
1

Other Private Investments
Various
 
10,629

 
12,057

Other Real Estate Investments (*)
Real Estate
 
5,731

 
10,138

 
 
 
$
121,803

 
$
135,846

*
Affiliates of the Company.
Merger Master  
Investment Holdings [Line Items]  
Marketable Securities
Securities owned by Merger Master, at fair value

As of September 30, 2015
 
As of December 31, 2014

(dollars in thousands)
Common stocks
$
179,650

 
$
133,510

Corporate bonds (a)
—

 
3,383


$
179,650

 
$
136,893

(a)
As of December 31, 2014, maturities ranged from February 2017 to June 2019 and interest rates ranged between 8.50% and 9.75%
Schedule of Derivative Instruments
Receivable on derivative contracts, at fair value, owned by Merger Master
 
As of September 30, 2015
 
As of December 31, 2014
Description
(dollars in thousands)
Options
$
604

 
$
541

Currency forwards
22

 
—

Equity swaps
150

 
76

 
$
776

 
$
617




Payable for derivative contracts, at fair value, owned by Merger Master
 
As of September 30, 2015
 
As of December 31, 2014
Description
(dollars in thousands)
Options
$
36

 
$
238

Exchange traded fund
3,801

 
—

Equity swaps
862

 
56

 
$
4,699

 
$
294
Quadratic Master  
Investment Holdings [Line Items]  
Schedule of Derivative Instruments
The Company's long and short exposure to derivatives is as follows:
Receivable on derivative contracts, at fair value, owned by Quadratic Master
 
As of September 30, 2015
Description
(dollars in thousands)
Options
$
9,622

Currency forwards
32

 
$
9,654

As of September 30, 2015, Quadratic Master held options payable for derivative, of $0.1 million.
Schedule of Other Investments, Portfolio Funds
Securities owned by Quadratic Master, at fair value
 
As of September 30, 2015
 
(dollars in thousands)
Common stocks
$
267

U.S. Government securities (a)
15,000

 
$
15,267

(a)
As of September 30, 2015, the maturity was October 2015 with an interest rate of 0%.