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Investments of Operating Entities and Consolidated Funds - (Tables)
 9 Months Ended
Sep. 30, 2016
Investment Holdings [Line Items]  
Marketable Securities
As of September 30, 2016 and December 31, 2015, securities owned, at fair value consisted of the following:
 
As of September 30, 2016
 
As of December 31, 2015
 
(dollars in thousands)
U.S. Government securities (a)
$
3,776

 
$
3,016

Preferred stock (b)
12,964

 
25,563

Common stocks (b)
504,093

 
516,108

Convertible bonds (c)
250

 
819

Corporate bonds (d)
17,794

 
47,192

Warrants and rights
5,762

 
3,059

Mutual funds (e)
5

 
14,477

 
$
544,644

 
$
610,234

(a)
As of September 30, 2016, maturities ranged from December 2016 to August 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 $4.2 million at September 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 September 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 September 30, 2016, maturities ranged from October 2016 to February 2046 and interest rates ranged between 3.25% to 13.00%. 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.
Schedule of Derivative Instruments
The Company's long and short exposure to derivatives is as follows:
Receivable on derivative contracts
As of September 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
$
13,935

 
$
704

 
$
9,416

 
$
189

Currency forwards
$
59,902

 
17

 
$
67,862

 
659

Equity swaps
$
67,059

 
1,442

 
$
118,488

 
2,327

Options other (a)
242,968

 
22,941

 
289,433

 
31,456

Foreign currency options
$
245,700

 
2,324

 
$
283,797

 
4,987

 
 
 
$
27,428

 
 
 
$
39,618

(a) Includes index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of September 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
$
42,736

 
$
1,235

 
$
11,995

 
$
101

Currency forwards
$
24,650

 
37

 
$
44,156

 
463

Equity and credit default swaps
$
—

 
—

 
$
7,605

 
71

Options other (a)
11,235

 
15,749

 
16,632

 
20,548

 
 
 
$
17,021

 
 
 
$
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 September 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 September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Receivable on derivative contracts, at fair value
$
27,428

 
$
—

 
$
27,428

 
$
—

 
$
4,278

 
$
23,150

Payable for derivative contracts, at fair value
17,021

 
—

 
17,021

 
—

 
37

 
16,984

 
 
 
 
 
 
 
 
 
 
 
 
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.
Schedule of Other Investments
As of September 30, 2016 and December 31, 2015, other investments included the following:
 
As of September 30, 2016
 
As of December 31, 2015
 
(dollars in thousands)
Portfolio Funds, at fair value (1)
$
115,682

 
$
113,281

Equity method investments (2)
51,485

 
27,067

Lehman claims, at fair value
283

 
299

 
$
167,450

 
$
140,647
Schedule of Other Investments, Portfolio Funds
The Portfolio Funds, at fair value as of September 30, 2016 and December 31, 2015, included the following:

As of September 30, 2016
 
As of December 31, 2015

(dollars in thousands)
HealthCare Royalty Partners (a)(*)
$
9,058

 
$
12,127

HealthCare Royalty Partners II (a)(*)
4,885

 
6,006

Orchard Square Partners Credit Fund LP (b)
4,241

 
4,170

Starboard Value and Opportunity Fund LP (c)(*)
27,984

 
20,369

Starboard Partners Fund LP (d)(*)
3,969

 
14,036

Starboard Leaders Fund LP (e)(*)
1,147

 
1,080

Formation8 Partners Fund I, L.P. (f)
21,784

 
19,454

Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.) (g)
1,705

 
1,101

RCG LV Park Lane LLC (h) (*)
971

 
809

RCGL 12E13th LLC (i) (*)
402

 
609

RCG Longview Debt Fund V, L.P. (i) (*)
16,325

 
18,147

RCG LPP2 PNW5 Co-Invest, L.P. (j) (*)
2,468

 
2,468

Quadratic Fund LLC (k) (*)
6,684

 
—

Other private investment (l) (*)
8,241

 
6,909

Other affiliated funds (m)(*)
5,818

 
5,996

 
$
115,682

 
$
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 fund 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.
Schedule of Other Investments, Equity Method
Other equity method investment
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(dollars in thousands)
Revenues
$
9,005

 
$
(8,686
)
 
$
9,747

 
$
(5,182
)
Expenses
—

 
—

 
—

 
—

Net realized and unrealized gains (losses)
37

 
(132
)
 
92

 
(67
)
Net Income
$
9,042

 
$
(8,818
)
 
$
9,839

 
$
(5,249
)
The following table summarizes equity method investments held by the Company:
 
As of September 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
6,594

 
4,655

HealthCare Royalty GP, LLC
739

 
989

HealthCare Royalty GP II, LLC
827

 
1,017

HealthCare Royalty GP III, LLC
197

 
88

HealthCare Overflow Fund GP, LLC
101

 
—

Surf House Ocean Views Holdings, LLC
13,383

 
—

Starboard Value LP
25,529

 
15,769

RCG Longview Management, LLC
714

 
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
1,311

 
1,211

RCG Kennedy House, LLC
227

 
304

Other
932

 
1,434

 
$
51,485

 
$
27,067
Schedule of Securities Sold, Not yet Purchased
As of September 30, 2016 and December 31, 2015, securities sold, not yet purchased, at fair value consisted of the following:
 
As of September 30, 2016
 
As of December 31, 2015
 
(dollars in thousands)
Common stocks
$
208,491

 
$
257,101

Corporate bonds (a)
3,653

 
58

Warrants and rights
39

 
—

 
$
212,183

 
$
257,159

(a)
As of September 30, 2016 and December 31, 2015, the maturities ranged from June 2017 to January 2026 with interest rates ranged between 3.25% to 6.88%.
Consolidated Funds  
Investment Holdings [Line Items]  
Marketable Securities
As of September 30, 2016 and December 31, 2015, securities owned, at fair value, held by the Consolidated Funds consisted of the following:
 
As of September 30, 2016
 
As of December 31, 2015
 
(dollars in thousands)
     U.S. Government securities (a)
$
3,999

 
$
—

     Preferred stock
37,243

 
32,000

     Common stocks
22,950

 
—

     Corporate bonds (b)
5,452

 
—

     Warrants and rights
3

 
—

     Term Loan
1,809

 
—

 
$
71,456

 
$
32,000

(a) As of September 30, 2016, maturity was December 2016 with an interest rate of 0%.
(b) As of September 30, 2016, maturities ranged from October 2017 to May 2049 and interest rates ranged between 5.88% and 14.37%.
Schedule of Derivative Instruments
As of September 30, 2016, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
 
As of September 30, 2016
 
(dollars in thousands)
Currency forwards
$
1

Equity swaps
366

Options
62

 
$
429

Payable for derivative contracts
As of September 30, 2016, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
 
As of September 30, 2016
 
(dollars in thousands)
Futures
$
246

Options
30

 
$
276
Schedule of Other Investments, Portfolio Funds
Investments in Portfolio Funds, at fair value
As of September 30, 2016 and December 31, 2015, investments in Portfolio Funds, at fair value, included the following:

As of September 30, 2016
 
As of December 31, 2015

(dollars in thousands)
Investments of Enterprise LP
$
110,290

 
$
111,075

Investments of Merger Fund
275,407

 
74,348

Investments of Caerus Select Fund Ltd
6,175

 
—

Investments of Quadratic LLC
—

 
78,395


$
391,872

 
$
263,818
Schedule of Securities Sold, Not yet Purchased
As of September 30, 2016, securities sold, not yet purchased, at fair value, held by the Consolidated Funds consisted of the following:
 
As of September 30, 2016
 
(dollars in thousands)
     Common stocks
$
395

     Corporate bonds (a)
1,145

 
$
1,540

(a) As of September 30, 2016, maturities ranged from September 2019 to March 2025 and interest rates ranged between 4.38% and 9.25%.
Enterprise Master  
Investment Holdings [Line Items]  
Marketable Securities
Securities owned by Enterprise Master, at fair value
 
As of September 30, 2016
 
As of December 31, 2015
 
(dollars in thousands)
Common stock
835

 
724

Preferred stock
1,587

 
1,484

Restricted stock
124

 
124

Rights
—

 
321

Trade claims
—

 
128

 
$
2,546

 
$
2,781
Schedule of Derivative Instruments
Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master
 
As of September 30, 2016
 
As of December 31, 2015
Description
(dollars in thousands)
Currency forwards
$
—

 
$
(4
)
 
$
—

 
$
(4
)
Schedule of Other Investments, Portfolio Funds
Portfolio Funds, owned by Enterprise Master, at fair value
 
 
 
As of September 30, 2016
 
As of December 31, 2015
 
Strategy
 
(dollars in thousands)
RCG Longview Equity Fund, LP*
Real Estate
 
$
4,847

 
$
7,635

RCG Longview II, LP*
Real Estate
 
742

 
698

RCG Longview Debt Fund IV, LP*
Real Estate
 
1,841

 
3,577

RCG Soundview, LLC*
Real Estate
 
452

 
452

RCG Urban American Real Estate Fund, L.P.*
Real Estate
 
307

 
312

RCG Special Opportunities Fund, Ltd*
Multi-Strategy
 
95,023

 
81,544

RCG Energy, LLC *
Energy
 
—

 
1,189

RCG Renergys, LLC*
Energy
 
1

 
1

Other Private Investments
Various
 
9,164

 
10,515

Other Real Estate Investments *
Real Estate
 
4,779

 
5,753

 
 
 
$
117,156

 
$
111,676

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

As of September 30, 2016
 
As of December 31, 2015

(dollars in thousands)
Common stocks
$
650,699

 
$
157,429

Corporate bonds (a)
14,443

 
492

 
$
665,142

 
$
157,921

(a)
As of September 30, 2016, the maturity was January 2024 with an interest rate of 6.5%. As of December 31, 2015, the maturity was June 2024 with an interest rate of 5.25%
Schedule of Derivative Instruments
Receivable on derivative contracts, at fair value, owned by Merger Master
 
As of September 30, 2016
 
As of December 31, 2015
Description
(dollars in thousands)
Options
$
2,987

 
$
1,275

Currency forwards
—

 
235

Equity swaps
2,525

 
1,001

 
$
5,512

 
$
2,511

Payable for derivative contracts, at fair value, owned by Merger Master
 
As of September 30, 2016
 
As of December 31, 2015
Description
(dollars in thousands)
Options
$
1,586

 
$
563

Equity swaps
—

 
30

 
$
1,586

 
$
593