Investments of Operating Entities and Consolidated Funds


a.	Operating Entities

Securities owned, at fair value

Securities owned, at fair value are held by the Company and are considered held for trading. Substantially all equity securities are pledged to the clearing brokers under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations.

As of June 30, 2016 and December 31, 2015, securities owned, at fair value consisted of the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
U.S. Government securities (a)	$	3,773	$	3,016
Preferred stock (b)	13,242		25,563
Common stocks (b)	443,240		516,108
Convertible bonds (c)	250		819
Corporate bonds (d)	6,847		47,192
Warrants and rights	3,581		3,059
Mutual funds (e)	821		14,477
	$	471,754	$	610,234


(a)	As of June 30, 2016, maturities ranged from July 2016 to June 2017 with an interest rate of 0%. As of December 31, 2015, maturities ranged from January 2016 to August 2016 with interest rates ranged between 0% to 5.95%.


(b)	Included in preferred stocks are investments in securities for which the Company has elected the fair value option with the fair value of $4.8 million at June 30, 2016 and preferred and common stock of $7.7 million and $7.4 million, respectively, at December 31, 2015. These investments were acquired in connection with merchant banking transactions.


(c)	As of June 30, 2016, the maturity was March 2018 with an interest rate of 8%. As of December 31, 2015, maturities ranged from July 2016 to March 2018 with interest rates ranged between 8% to 10.00%.


(d)	As of June 30, 2016, maturities ranged from August 2017 to February 2046 and interest rates ranged between 3.50% to 8.25%. As of December 31, 2015, maturities ranged from March 2016 to February 2046 and interest rates ranged between 3.25% to 9.00%.


(e)	Included in this amount as of December 31, 2015, are investments in affiliated funds of $13.4 million all of which was liquidated during the three months ended March 31, 2016.

Receivable on and Payable for derivative contracts, at fair value

The Company's direct involvement with derivative financial instruments includes futures, currency forwards, equity swaps, and options. The Company's derivatives trading activities exposes the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets.

Upon issuance of the Company's cash convertible unsecured senior notes ("Convertible Notes") (See Note 13), the Company recognized the embedded cash conversion option at fair value of $35.7 million which is valued as of June 30, 2016 at $8.5 million and is included in payable for derivative contracts in the accompanying condensed consolidated statement of financial condition. Also, on the date of issuance of the Convertible Notes, the Company entered into a separate cash convertible note economic hedge transaction (the "Hedge Transaction") with a counterparty (the “Option Counterparty”) whereby, the Company purchased a cash settled option contract with terms identical to the conversion option embedded in the Convertible Notes and simultaneously sold an equity settled warrant with a higher strike price. The Hedge Transaction is expected to reduce the Company’s exposure to potential cash payments in excess of the principal amount of converted notes that the Company may be required to make upon conversion of the Convertible Notes. The Company paid a premium of $35.7 million for the option under the Hedge Transaction and received a premium of $15.2 million for the equity settled warrant transaction, for a net cost of $20.5 million. The Hedge Transaction is valued at $8.5 million as of June 30, 2016 and is included in receivable on derivative contracts in the accompanying condensed consolidated statement of financial condition. Aside from the initial premium paid, the Company will not be required to make any cash payments under the Hedge Transaction and could be entitled to receive an amount of cash from the Option Counterparty generally equal to the amount by which the market price per share of common stock exceeds the strike price of the Hedge Transaction during the relevant valuation period. The warrants cover 28,048,786 shares of the Company's Class A common stock and have an initial exercise price of $7.18 per share. The warrants expire over a period of 80 trading days beginning on November 14, 2018. The warrant transaction could have a dilutive effect to the extent that the market value per share of the Company’s Class A common stock exceeds the applicable strike price of the warrants.

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



Receivable on derivative contracts	As of June 30, 2016				As of December 31, 2015
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	19,282	$	797	$	9,416	$	189
Currency forwards	$	19,354	160		$	67,862	659
Equity swaps	$	100,870	2,654		$	118,488	2,327
Options other (a)	262,443		17,841		289,433		31,456
Foreign currency options	$	252,038	3,519		$	283,797	4,987
			$	24,971			$	39,618

(a) Includes index, equity, commodity future and cash conversion options.



Payable for derivative contracts	As of June 30, 2016				As of December 31, 2015
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	33,424	$	1,005	$	11,995	$	101
Currency forwards	$	86,059	403		$	44,156	463
Equity and credit default swaps	$	65,381	2,408		$	7,605	71
Options other (a)	9,606		11,040		16,632		20,548
			$	14,856			$	21,183

(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 June 30, 2016 and December 31, 2015.



							Gross amounts not offset in the Condensed Consolidated Statement of Financial Condition
	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		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of June 30, 2016
Receivable on derivative contracts, at fair value	$	24,971	$	—	$	24,971	$	—	$	7,674	$	17,297
Payable for derivative contracts, at fair value	14,856		—		14,856		—		2,811		12,045

As of December 31, 2015
Receivable on derivative contracts, at fair value	39,618		—		39,618		—		9,339		30,279
Payable for derivative contracts, at fair value	21,183		—		21,183		—		534		20,649


(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.

The realized and unrealized gains/(losses) related to derivatives trading activities were $(9.9) million and $(7.5) million for the three months ended June 30, 2016 and 2015 and $(7.5) million and $(5.4) million for the six months ended June 30, 2016 and 2015, respectively, and are included in other income in the accompanying condensed consolidated statements of operations.

Pursuant to the various derivatives transactions discussed above, except for the cash convertible note hedge (see Note 13) and exchange traded derivatives, the Company is required to post/receive collateral. As of June 30, 2016 and December 31, 2015, collateral consisting of $36.2 million and $27.1 million of cash, respectively, is included in receivable from brokers and payable to brokers on the accompanying condensed consolidated statements of financial condition. As of June 30, 2016 and December 31, 2015 all derivative contracts were with multiple major financial institutions.

Other investments

As of June 30, 2016 and December 31, 2015, other investments included the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Portfolio Funds, at fair value (1)	$	116,079	$	113,281
Equity method investments (2)	42,629		27,067
Lehman claims, at fair value	270		299
	$	158,978	$	140,647

(1) Portfolio Funds, at fair value

The Portfolio Funds, at fair value as of June 30, 2016 and December 31, 2015, included the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
HealthCare Royalty Partners (a)(*)	$	10,137	$	12,127
HealthCare Royalty Partners II (a)(*)	6,036		6,006
Orchard Square Partners Credit Fund LP (b)	4,176		4,170
Starboard Value and Opportunity Fund LP (c)(*)	26,843		20,369
Starboard Partners Fund LP (d)(*)	4,013		14,036
Starboard Leaders Fund LP (e)(*)	1,178		1,080
Formation8 Partners Fund I, L.P. (f)	20,941		19,454
Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.) (g)	1,720		1,101
RCG LV Park Lane LLC (h) (*)	590		809
RCGL 12E13th LLC (i) (*)	407		609
RCG Longview Debt Fund V, L.P. (i) (*)	16,426		18,147
RCG LPP2 PNW5 Co-Invest, L.P. (j) (*)	2,468		2,468
Quadratic Fund LLC (k) (*)	6,865		—
Other private investment (l) (*)	7,933		6,909
Other affiliated funds (m)(*)	6,346		5,996
	$	116,079	$	113,281

* 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 12.


(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)	Eclipse Ventures Fund I, L.P. (Formerly 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 LPP2 PNW5 Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired five multi-unit residential rental properties located in the Pacific Northwest. RCG LPP2 PNW5 Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.


(k)	Quadratic Fund LLC permits redemptions on a 30 days prior written notice.


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


(m)	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.


(2)	Equity method investments

Equity method investments include investments held by the Company in several operating companies whose operations primarily include the day to day management of a number of real estate funds, including the portfolio management and administrative services related to the acquisition, disposition, and active monitoring of the real estate funds' underlying debt and equity investments. The Company's ownership interests in these equity method investments range from 20% to 55%. The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC. The operating agreement that governs the management of day-to-day operations and affairs of this entity stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in this entity requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current accounting standards and the Company accounts for these investments under the equity method of accounting. Also included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners and (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day to day management (including portfolio management) of several activist hedge funds and related managed accounts and c) Surf House Ocean Views Holdings, LLC which is a joint venture in a real estate development project. The Company recorded no impairment charges in relation to its equity method investments for the six months ended June 30, 2016 and 2015.

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



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
RCG Longview Debt Fund IV Management, LLC	$	331	$	331
RCG Longview Debt Fund V Partners, LLC	5,942		4,655
HealthCare Royalty GP, LLC	827		989
HealthCare Royalty GP II, LLC	1,022		1,017
HealthCare Royalty GP III, LLC	78		88
HealthCare Overflow Fund GP, LLC	85		—
Surf House Ocean Views Holdings, LLC	13,254		—
Starboard Value LP	16,844		15,769
RCG Longview Management, LLC	695		656
RCG Urban American, LLC	107		120
RCG Urban American Management, LLC	379		379
RCG Longview Equity Management, LLC	114		114
Urban American Real Estate Fund II, LLC	1,312		1,211
RCG Kennedy House, LLC	212		304
Other	1,427		1,434
	$	42,629	$	27,067

As of June 30, 2016 and December 31, 2015, the Company's share of losses in its equity method investment in RCG Longview Partners II, LLC has exceeded the carrying amount recorded in this investee. These amounts are included in accounts payable, accrued expenses and other liabilities in the accompanying condensed consolidated statements of financial condition. RCG Longview Partners II, LLC, as general partner to a real estate fund, has reversed previously recorded incentive income allocations and has recorded a current clawback obligation to the limited partners in the fund. This obligation is due to a change in unrealized value of the fund on which there have previously been distributed carried interest realizations; however, the settlement of a potential obligation is not due until the end of the life of the respective fund. As the Company is obligated to return previous distributions it received from RCG Longview Partners II, LLC, it has continued to record its share of gains/losses in the investee including reflecting its share of the clawback obligation in the amount of $6.2 million.

The Company's income (loss) from equity method investments was $0.2 million and $(5.0) million for the three months ended June 30, 2016 and 2015 and $4.9 million and $9.2 million for the six months ended June 30, 2016 and 2015, respectively, and is included in net gains (losses) on securities, derivatives and other investments on the accompanying condensed consolidated statements of operations.

Securities sold, not yet purchased, at fair value

Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver a specified security at a contracted price and, thereby, create a liability to purchase that security at prevailing prices. The Company's liability for securities to be delivered is measured at their fair value as of the date of the consolidated financial statements. However, these transactions result in off-balance sheet risk, as the Company's ultimate cost to satisfy the delivery of securities sold, not yet purchased, at fair value may exceed the amount reflected in the accompanying condensed consolidated statements of financial condition. Substantially all equity securities and options are pledged to the clearing broker under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of June 30, 2016 and December 31, 2015, securities sold, not yet purchased, at fair value consisted of the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Common stocks	$	284,283	$	257,101
Corporate bonds (a)	1,131		58
	$	285,414	$	257,159


(a)	As of June 30, 2016 and December 31, 2015, the maturities ranged from February 2020 to January 2026 with interest rates ranged between 5.55% to 8.25%.

Variable Interest Entities

The total assets and liabilities of the variable interest entities for which the Company has concluded that it holds a variable interest, but for which it is not the primary beneficiary, are $5.1 billion and $0.7 billion as of June 30, 2016 and $3.1 billion and $473.3 million as of December 31, 2015, respectively. In addition, the maximum exposure relating to these variable interest entities as of June 30, 2016 was $464.8 million, and as of December 31, 2015 was $327.8 million, all of which is included in other investments, at fair value in the accompanying condensed consolidated statements of financial condition. The exposure to loss primarily relates to the Consolidated Feeder Funds' investment in their Unconsolidated Master Funds and the Company's investment in unconsolidated investment companies.


b.	Consolidated Funds

Securities owned, at fair value

As of June 30, 2016 and December 31, 2015, securities owned, at fair value, held by the Consolidated Funds consisted of the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Preferred stock	$	41,148	$	32,000
Common stocks	6,228		—
Corporate bonds (a)	4,726		—
Term Loan	1,426		—
	$	53,528	$	32,000

(a) As of June 30, 2016, maturities ranged from October 2017 to May 2049 and interest rates ranged between 6.28% and 14.37%.

Securities sold, not yet purchased, at fair value

As of June 30, 2016, securities sold, not yet purchased, at fair value, held by the Consolidated Funds consisted of the following:



	As of June 30, 2016
	(dollars in thousands)
Common stocks	$	358
Corporate bonds (a)	1,195
	$	1,553

(a) As of June 30, 2016, maturities ranged from September 2019 to March 2025 and interest rates ranged between 4.38% and 9.25%.

Receivable on derivative contracts

As of June 30, 2016, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:



	As of June 30, 2016
	(dollars in thousands)
Currency forwards	$	18
Equity swaps	23
Options	19
	$	60

Other investments, at fair value

Investments in Portfolio Funds, at fair value

As of June 30, 2016 and December 31, 2015, investments in Portfolio Funds, at fair value, included the following:



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Investments of Enterprise LP	$	107,429	$	111,075
Investments of Merger Fund	261,526		74,348
Investments of Caerus Select Fund Ltd	5,728		—
Investments of Quadratic LLC	—		78,395
	$	374,683	$	263,818

Consolidated portfolio fund investments of Enterprise LP

Enterprise LP operates under a “master-feeder” structure, whereby Enterprise Master's shareholders are Enterprise LP and RCG II Intermediate Fund, L.P. The consolidated investments in Portfolio Funds include Enterprise LP's investment of $107.4 million and $111.1 million in Enterprise Master as of June 30, 2016 and December 31, 2015, respectively. On May 12, 2010, the Company announced its intention to close Enterprise Master. Prior to this announcement, strategies utilized by Enterprise Master included merger arbitrage and activist investing, investments in distressed securities, convertible hedging, capital structure arbitrage, equity market neutral, investments in private placements of convertible securities, proprietary mortgages, structured credit investments, investments in mortgage backed securities and other structured finance products, investments in real estate and real property interests, structured private placements and other relative value strategies. Enterprise Master had broad investment powers and maximum flexibility in seeking to achieve its investment objective. Enterprise Master was permitted to invest in equity securities, debt instruments, options, futures, swaps, credit default swaps and other derivatives. As Enterprise Master winds down its positions, it will return capital to its investors. There are no unfunded commitments at Enterprise LP.

Consolidated portfolio fund investments of Merger Fund

The Merger Fund operates under a “master-feeder” structure, whereby Ramius Merger Master Ltd's ("Merger Master") shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $261.5 million and $74.3 million in Merger Master as of June 30, 2016 and December 31, 2015, respectively. The Merger Master’s investment objective is to achieve consistent absolute returns while emphasizing the preservation of investor capital. The Merger Master seeks to achieve these objectives by taking a fundamental, research-driven approach to investing, primarily in the securities of issuers engaged in, or subject to, announced (or unannounced but otherwise anticipated) extraordinary corporate transactions, which may include, but are not limited to, mergers, acquisitions, leveraged buyouts, tender offers, hostile takeover bids, sale processes, exchange offers, and recapitalizations. Merger Master invests in the securities of one or more issuers engaged in or subject to such extraordinary corporate transactions. Merger Master typically seeks to derive a profit by realizing the price differential, or “spread,” between the market price of securities purchased or sold short and the market price or value of securities realized in connection with the completion or termination of the extraordinary corporate transaction, or in connection with the adjustment of market prices in anticipation thereof, while seeking to minimize the market risk associated with the aforementioned investment activities. Merger Master will, depending on markets conditions, generally focus the majority of its investment program on announced transactions. If the investment manager of Merger Master considers it necessary, it may either alone or as part of a group, also initiate shareholder actions seeking to maximize value. Such shareholder actions may include, but are not limited to, re-orienting management’s focus or initiating the sale of the company (or one or more of its divisions) to a third party. There are no unfunded commitments at Merger Fund.

Consolidated portfolio fund investments of Caerus LP

Caerus LP operates under a “master-feeder” structure, whereby Caerus Select Master Fund Ltd's ("Caerus Master") shareholder is Caerus LP. The consolidated investments in Portfolio Funds include Caerus LP's investment of $5.7 million in Caerus Master as of June 30, 2016. Caerus Master’s investment objective is to achieve superior risk-adjusted rates of return that bear little correlation to the overall market. Caerus Master seeks to achieve this objective by utilizing a long/short investment strategy, investing primarily in equities and options on equities that trade on major global market exchanges. Caerus Master focuses on investments in the global consumer sector, including, but not limited to, securities in sub-sectors such as retail, apparel and footwear, restaurants, gaming and lodging, consumer products, food and beverage, consumer technology, media, transportation and homebuilding and building materials. There are no unfunded commitments at Caerus LP.

Consolidated portfolio fund investments of Quadratic Fund LLC

Quadratic LLC operates under a “master-feeder” structure, whereby Quadratic Master Fund Ltd's ("Quadratic Master") shareholders are Quadratic Fund LLC and Quadratic Fund Ltd. The consolidated investments in Portfolio Funds include Quadratic Fund LLC's investment of $78.4 million in Quadratic Master as of December 31, 2015. Quadratic LLC was deconsolidated on January 1, 2016 (See Note 3). The Quadratic Master’s investment objective is to achieve attractive, risk-adjusted rates of return through the use of proprietary fundamental global macro and options/swaptions based strategies. Quadratic Master’s strategy is primarily executed via options and swaptions.

Indirect Concentration of the Underlying Investments Held by Consolidated Funds

From time to time, either directly or indirectly through its investments in the Consolidated Funds, the Company may maintain exposure to a particular issue or issuer (both long and/or short) which may account for 5% or more of the Company's equity. Based on information that is available to the Company as of June 30, 2016 and December 31, 2015, the Company assessed whether or not its interests in an issuer for which the Company's pro-rata share exceeds 5% of the Company's equity. There were no indirect concentrations that exceed 5% of the Company's equity as of June 30, 2016 and December 31, 2015.

Underlying Investments of Unconsolidated Funds Held by Consolidated Funds

Enterprise Master and Merger Master

Enterprise LP's investment in Enterprise Master represents Enterprise LP's proportionate share of Enterprise Master's net assets; as a result, the investment balances of Enterprise Master reflected below may exceed the net investment which Enterprise LP has recorded. Merger Fund's investment in Merger Master represents Merger Fund's proportionate share of Merger Master's net assets; as a result, the investment balances of Merger Master reflected below may exceed the net investment which Merger Fund has recorded. The following tables present summarized investment information for the underlying investments and derivatives held by Enterprise Master and Merger Master as of June 30, 2016 and December 31, 2015:

Securities owned by Enterprise Master, at fair value



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Common stock	765		724
Preferred stock	1,493		1,484
Restricted stock	124		124
Rights	—		321
Trade claims	—		128
	$	2,382	$	2,781

Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master



	As of June 30, 2016		As of December 31, 2015
Description	(dollars in thousands)
Currency forwards	$	—	$	(4	)
	$	—	$	(4	)

Portfolio Funds, owned by Enterprise Master, at fair value



		As of June 30, 2016		As of December 31, 2015
	Strategy	(dollars in thousands)
RCG Longview Equity Fund, LP*	Real Estate	$	7,507	$	7,635
RCG Longview II, LP*	Real Estate	709		698
RCG Longview Debt Fund IV, LP*	Real Estate	2,470		3,577
RCG Soundview, LLC*	Real Estate	452		452
RCG Urban American Real Estate Fund, L.P.*	Real Estate	309		312
RCG Special Opportunities Fund, Ltd*	Multi-Strategy	91,727		81,544
RCG Energy, LLC *	Energy	—		1,189
RCG Renergys, LLC*	Energy	1		1
Other Private Investments	Various	9,339		10,515
Other Real Estate Investments (*)	Real Estate	4,662		5,753
		$	117,176	$	111,676


*	Affiliates of the Company.

Merger Master

Securities owned by Merger Master, at fair value



	As of June 30, 2016		As of December 31, 2015
	(dollars in thousands)
Common stocks	$	499,076	$	157,429
Corporate bonds (a)	—		492
	$	499,076	$	157,921


(a)	As of December 31, 2015, the maturity was June 2024 with an interest rate of 5.25%.

Securities sold, not yet purchased, by Merger Master, at fair value

As of June 30, 2016 and December 31, 2015, Merger Master held common stock, sold not yet purchased, of $325.1 million and $73.8 million, respectively.

Receivable on derivative contracts, at fair value, owned by Merger Master



	As of June 30, 2016		As of December 31, 2015
Description	(dollars in thousands)
Options	$	2,036	$	1,275
Currency forwards	40		235
Equity swaps	4,122		1,001
	$	6,198	$	2,511

Payable for derivative contracts, at fair value, owned by Merger Master



	As of June 30, 2016		As of December 31, 2015
Description	(dollars in thousands)
Options	$	—	$	563
Currency forwards	355		—
Equity swaps	3,837		30
	$	4,192	$	593

Caerus Master

As of June 30, 2016, Caerus Master held common stock, of $4.8 million and common stock, sold not yet purchased, of $4.8 million.