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Investments of Operating Entities and Consolidated Funds - (Tables)
 12 Months Ended
Dec. 31, 2016
Investment Holdings [Line Items]  
Marketable Securities
As of December 31, 2016 and 2015, securities owned, at fair value consisted of the following:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Common stocks (b)
$
669,655

 
$
515,108

Preferred stock (b)
15,811

 
25,563

Warrants and rights
8,335

 
3,059

U.S. Government securities (a) (b)
3,780

 
3,016

Corporate bonds (d)
3,029

 
47,192

Convertible bonds (c)
250

 
819

Trade claims
10

 
—

Mutual funds (b) (e)
6

 
14,477

 
$
700,876

 
$
609,234

(a)
As of December 31, 2016, maturities ranged from February 2017 to December 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)
The Company has elected the fair value option for investments in securities of preferred and common stocks with a fair value of $7.0 million and $5.2 million at December 31, 2016 and preferred and common stock with a fair value of $11.6 million and $9.4 million, respectively, at December 31, 2015. The Company has also elected the fair value option for investments in mutual funds and U.S. government securities with a fair value of $0.1 million and $3.8 million at December 31, 2016 and mutual funds and U.S. government securities with a fair value of $5.5 million and $3.0 million, respectively, at December 31, 2015, respectively.
(c)
As of December 31, 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 December 31, 2016, maturities ranged from January 2017 to January 2036 and interest rates ranged between 6.25% 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 December 31,
 
2016
 
2015
 
Number of contracts / Notional Value
 
Fair value
 
Number of contracts / Notional Value
 
Fair value
 
(dollars in thousands)
Futures
$
12,421

 
$
104

 
$
9,416

 
$
189

Currency forwards
$
80,608

 
592

 
$
67,862

 
659

Swaps
$
46,462

 
468

 
$
118,488

 
2,327

Options other (a)
256,097

 
21,539

 
289,433

 
31,456

Foreign currency options
$
57,051

 
198

 
$
283,797

 
4,987

 
 
 
$
22,901

 
 
 
$
39,618

(a) Includes index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of December 31,
 
2016
 
2015
 
Number of contracts / Notional Value
 
Fair value
 
Number of contracts / Notional Value
 
Fair value
 
(dollars in thousands)
Futures
$
38,345

 
$
642

 
$
11,995

 
$
101

Currency forwards
$
—

 
—

 
$
44,156

 
463

Swaps
$
9,533

 
181

 
$
7,605

 
71

Options other (a)
23,726

 
19,939

 
16,632

 
20,548

 
 
 
$
20,762

 
 
 
$
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 December 31, 2016 and 2015. This table does not include the impact of over collateralization.
 
 
 
 
 
 
 
Gross amounts not offset in the Consolidated 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 December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Receivable on derivative contracts, at fair value
$
22,901

 
$
—

 
$
22,901

 
$
—

 
$
1,382

 
$
21,519

Payable for derivative contracts, at fair value
20,762

 
—

 
20,762

 
—

 
181

 
20,581

 
 
 
 
 
 
 
 
 
 
 
 
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 December 31, 2016 and 2015, other investments included the following:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Portfolio Funds, at fair value (1)
$
120,023

 
$
114,281

Equity method investments (2)
36,991

 
27,067

Lehman claims, at fair value
265

 
299

 
$
157,279

 
$
141,647
Schedule of Other Investments, Portfolio Funds
The Portfolio Funds, at fair value as of December 31, 2016 and 2015, included the following:
 
As of December 31,

2016
 
2015

(dollars in thousands)
Starboard Value and Opportunity Fund LP (c)(*)
$
27,424

 
$
20,369

Formation8 Partners Fund I, L.P. (f)
22,234

 
19,454

RCG Longview Debt Fund V, L.P. (i) (*)
16,187

 
18,147

HealthCare Royalty Partners LP (a)(*)
7,147

 
12,127

Quadratic Fund LLC (k) (*)
6,729

 
—

Green Energy Metals Fund, LP (o)
6,241

 
—

Starboard Partners Fund LP (d)(*)
5,067

 
14,036

Orchard Square Partners Credit Fund LP (b)
4,327

 
4,170

RCG LPP2 PNW5 Co-Invest, L.P. (j) (*)
3,152

 
2,468

HealthCare Royalty Partners II LP (a)(*)
2,091

 
6,006

Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.) (g)
1,790

 
1,101

Lagunita Biosciences, LLC (n)
1,698

 
1,000

Starboard Leaders Fund LP (e)(*)
1,231

 
1,080

RCGL 12E13th LLC (i) (*)
348

 
609

RCG LV Park Lane LLC (h) (*)
—

 
809

Other private investment (l) (*)
8,548

 
6,909

Other affiliated funds (m)(*)
5,809

 
5,996

 
$
120,023

 
$
114,281

* 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 18.
(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 was 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.
(n)
Lagunita Biosciences, LLC, a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.
(o)
The Green Energy Metals Fund, LP invests the vast majority of its capital in physical off-exchange traded minor metals that are crucial to the production and sustainability of clean energy, emerging technology and energy efficiency. The Company is invested in a managed account specifically targeting Cobalt. The Green Energy Metals Fund, LP is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.
Schedule of Other Investments, Equity Method
The following table summarizes equity method investments held by the Company:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Surf House Ocean Views Holdings, LLC
$
13,522

 
$
—

Starboard Value LP
12,501

 
15,769

RCG Longview Debt Fund V Partners, LLC
7,256

 
4,655

RCG Longview Management, LLC
656

 
656

HealthCare Royalty GP, LLC
583

 
989

HealthCare Royalty GP II, LLC
354

 
1,017

RCG Longview Debt Fund IV Management, LLC
331

 
331

HealthCare Royalty GP III, LLC
208

 
88

RCG Kennedy House, LLC
183

 
304

RCG Longview Equity Management, LLC
114

 
114

HealthCare Overflow Fund GP, LLC
68

 
—

Urban American Real Estate Fund II, LLC
—

 
1,211

RCG Urban American Management, LLC
—

 
379

RCG Urban American, LLC
—

 
120

Other
1,215

 
1,434

 
$
36,991

 
$
27,067

For the period ended December 31, 2016, equity method investments held by the Company in aggregate have met the
significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial
information for these significant investees for the years ended December 31, 2016, 2015 and 2014, and such information is as follows.
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Assets
$
88,965

 
$
96,529

Liabilities
22,504

 
10,669

Equity
$
66,461

 
$
85,860

Other equity method investment
Year Ended December 31,
 
2016
 
2015
 
2014
 
(dollars in thousands)
Revenues
$
90,337

 
$
38,571

 
$
139,360

Expenses
(34,490
)
 
(20,658
)
 
(20,044
)
Net realized and unrealized gains (losses)
(6,305
)
 
9,715

 
12,342

Net Income
$
49,542

 
$
27,628

 
$
131,658
Schedule Of Results Of Operations Equity Method Investments [Table Text Block]
For the period ended December 31, 2016, one equity method investments have met the significance criteria as defined under Regulation S-X Rule 4-08(g) of the SEC guidance. As such, the Company is presenting the following summarized financial information:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Assets
 
 
 
   Cash
$
1,176

 
$
213

   Performance & management fee receivable
10,146

 
16,839

   Investments in Portfolio Funds, at fair value
2,490

 
3,425

Liabilities
5,604

 
—

Equity
$
8,208

 
$
20,477

 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(dollars in thousands)
Revenues
$
24,008

 
$
(19,246
)
 
$
90,905

Expenses
—

 
—

 
—

Net realized and unrealized gains (losses)
301

 
(221
)
 
734

Net Income
$
24,309

 
$
(19,467
)
 
$
91,639
Schedule of Securities Sold, Not yet Purchased
As of December 31, 2016 and 2015, securities sold, not yet purchased, at fair value consisted of the following:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
Common stocks
$
263,460

 
$
257,101

Corporate bonds (a)
2,591

 
58

Warrants and rights
39

 
—

 
$
266,090

 
$
257,159

(a)
As of December 31, 2016 and 2015, the maturities ranged from April 2021 to January 2036 with interest rates ranged between 5.50% to 6.25%.
Consolidated Funds  
Investment Holdings [Line Items]  
Marketable Securities
As of December 31, 2016 and 2015, securities owned, at fair value, held by the Consolidated Funds consisted of the following:
 
As of December 31,
 
2016
 
2015
 
(dollars in thousands)
     Preferred stock
$
37,343

 
$
32,000

     Common stocks
28,474

 
—

     U.S. Government securities (a)
6,994

 
—

     Corporate bonds (b)
4,214

 
—

     Term Loan
2,209

 
—

     Warrants and rights
3

 
—

 
$
79,237

 
$
32,000

(a) As of December 31, 2016, the maturity was March 2017 with an interest rate of 0%.
(b) As of December 31, 2016, maturities ranged from October 2017 to June 2038 and interest rates ranged between 0% and 14.37%.
Schedule of Derivative Instruments
Receivable on derivative contracts
As of December 31, 2016, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
 
As of December 31, 2016
 
(dollars in thousands)
Currency forwards
$
18

Equity swaps
731

Options
144

 
$
893






Payable for derivative contracts
As of December 31, 2016, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
 
As of December 31, 2016
 
(dollars in thousands)
Currency forwards
$
10

Futures
495

Options
67

 
$
572
Schedule of Other Investments, Portfolio Funds
Investments in Portfolio Funds, at fair value
As of December 31, 2016 and 2015, investments in Portfolio Funds, at fair value, included the following:
 
As of December 31,

2016
 
2015

(dollars in thousands)
Investments of Enterprise LP
$
114,159

 
$
111,075

Investments of Merger Fund
281,572

 
74,348

Investments of Caerus Select Fund LP
5,734

 
—

Investments of Quadratic LLC
—

 
78,395


$
401,465

 
$
263,818
Schedule of Securities Sold, Not yet Purchased
Securities sold, not yet purchased, at fair value
As of December 31, 2016, securities sold, not yet purchased, at fair value, held by the Consolidated Funds consisted of the following:
 
As of December 31, 2016
 
(dollars in thousands)
     Corporate bonds (a)
$
672

     Common stocks
211

 
$
883

(a) As of December 31, 2016, maturities ranged from September 2019 to September 2023 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 December 31,
 
2016
 
2015
 
(dollars in thousands)
Preferred stock
$
1,581

 
$
1,484

Common stock
835

 
724

Rights
—

 
321

Trade claims
—

 
128

Restricted stock
—

 
124

 
$
2,416

 
$
2,781
Schedule of Derivative Instruments
Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master
 
As of December 31,

2016
 
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 December 31,
 
 
 
2016
 
2015
 
Strategy
 
(dollars in thousands)
RCG Special Opportunities Fund, Ltd*
Multi-Strategy
 
$
101,832

 
$
81,544

RCG Longview Equity Fund, LP*
Real Estate
 
4,744

 
7,635

RCG Longview Debt Fund IV, LP*
Real Estate
 
1,637

 
3,577

RCG Longview II, LP*
Real Estate
 
836

 
698

RCG Renergys, LLC*
Energy
 
1

 
1

RCG Energy, LLC *
Energy
 
—

 
1,189

RCG Soundview, LLC*
Real Estate
 
—

 
452

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

 
312

Other Private Investments
Various
 
8,682

 
10,515

Other Real Estate Investments *
Real Estate
 
295

 
5,753

 
 
 
$
118,027

 
$
111,676

*
Affiliates of the Company.
Merger Master  
Investment Holdings [Line Items]  
Marketable Securities
Securities owned by Merger Master, at fair value
 
As of December 31,

2016
 
2015

(dollars in thousands)
Common stocks
$
835,672

 
$
157,429

Corporate bonds (a)
—

 
492

 
$
835,672

 
$
157,921

(a)
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 December 31,

2016
 
2015
Description
(dollars in thousands)
Options
$
4,264

 
$
1,275

Equity swaps
255

 
1,001

Currency forwards
—

 
235

 
$
4,519

 
$
2,511

Payable for derivative contracts, at fair value, owned by Merger Master
 
As of December 31,
 
2016
 
2015
Description
(dollars in thousands)
Options
$
2,285

 
$
563

Equity swaps
123

 
30

 
$
2,408

 
$
593