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Investments of Operating Entities and Consolidated Funds
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments of Operating Entities and Consolidated Funds 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, which are not part of the Company's self-clearing securities finance activities, are pledged to external clearing brokers under terms which permit the external clearing broker to sell or re-pledge the securities to others subject to certain limitations.
As of December 31, 2019 and 2018, securities owned, at fair value consisted of the following:
As of December 31,
 20192018
 (dollars in thousands)
Common stock (*)$1,546,484  $472,299  
Preferred stock (*)12,656  5,617  
Warrants and rights (*)22,109  7,990  
Government bonds (a)15,916  13,398  
Corporate bonds (c)25,500  13,041  
Convertible bonds (b) (*)2,500  3,000  
Term loan (*)1,067  —  
Trade claims (*)7,320  5,543  
$1,633,552  $520,888  
(a)As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%. As of December 31, 2018, maturities ranged from April 2019 to August 2019 with an interest rate of 0%.
(b)As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2018, the maturity was June 2020 with an interest rate of 8%.
(c)As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15%. As of December 31, 2018, maturities ranged from April 2019 to April 2049 and interest rates ranged from 2% to 15.5%.
* The Company has elected the fair value option for securities owned, at fair value with a fair value of $14.9 million and $9.4 million, respectively, at December 31, 2019 and 2018.
Receivable on and Payable for derivative contracts, at fair value
The Company's direct involvement with derivative financial instruments includes total return swaps, futures, currency forwards, equity swaps, credit default swaps and options. The Company's derivatives trading activities expose the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets.
The Company's long and short exposure to derivatives is as follows:
Receivable on derivative contractsAs of December 31,
20192018
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Futures$—  $—  $42,288  $334  
Currency forwards$—  —  $395  1  
Swaps$383,752  2,911  $13,702  917  
Options other (a)550,188  60,066  654,506  23,130  
Pay to hold$—  —  $—  743  
$62,977  $25,125  
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of December 31,
20192018
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Futures$10,224  $217  $—  $—  
Currency forwards$77,790  851  $96,406  709  
Swaps$607,717  23,169  $52,905  2,162  
Options other (a)306,306  36,524  90,730  13,211  
$60,761  $16,082  
(a) Includes the volume of contracts for 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, 2019 and 2018. This table does not include the impact of over-collateralization.
Gross amounts not offset in the Consolidated Statements 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, 2019
Receivable on derivative contracts, at fair value$66,217  $3,240  $62,977  $—  $2,911  $60,066  
Payable for derivative contracts, at fair value64,001  3,240  60,761  —  24,020  36,741  
As of December 31, 2018
Receivable on derivative contracts, at fair value$25,125  $—  $25,125  $—  $1,662  $23,463  
Payable for derivative contracts, at fair value16,082  —  16,082  —  2,871  13,211  
(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 $(13.0) million, $14.3 million, and $3.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in other income in the accompanying consolidated statements of operations.
Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. As of December 31, 2019 and 2018, collateral consisting of $10.5 million and $11.2 million of cash is included in receivable from brokers, dealers and clearing organizations of $681.7 million
and $786.1 million, respectively, and payable to brokers, dealers and clearing organizations, of $271.0 million and $228.7 million, respectively, on the accompanying consolidated statements of financial condition. As of December 31, 2019 and 2018, all derivative contracts were with major financial institutions.
Other investments
As of December 31, 2019 and 2018, other investments included the following:
As of December 31,
 20192018
 (dollars in thousands)
Portfolio funds, at fair value (1)$114,504  $124,741  
Carried interest (2)30,360  17,995  
Equity method investments (3)40,858  38,671  
$185,722  $181,407  
(1) Portfolio Funds, at fair value
The Portfolio Funds, at fair value as of December 31, 2019 and 2018, included the following:
As of December 31,
20192018
(dollars in thousands)
Starboard Value and Opportunity Fund LP (c)(*)$37,895  $32,579  
Formation8 Partners Fund I, L.P. (f)33,613  34,099  
RCG Longview Debt Fund V, L.P. (g)(*)1,732  4,394  
RCG Longview II LP (g) (*)110  4,400  
Cowen Healthcare Investments II LP (i) (*)14,652  14,939  
Eclipse Ventures Fund I, L.P. (b)3,960  4,412  
HealthCare Royalty Partners LP (a)(*)1,326  1,833  
Lagunita Biosciences, LLC (d)4,802  3,833  
Starboard Leaders Fund LP (e)(*)1,560  1,230  
Eclipse SPV I, LP (j)(*)1,447  1,447  
Triartisan ES Partners LLC (k)(*)1,082  1,500  
Triartisan PFC Partners LLC (l)(*)909  —  
RCG Longview Equity Fund, LP (g) (*)835  802  
RCG Longview Debt Fund VI, LP (g) (*)—  1,586  
RCG Park Liberty GP Member LLC (g) (*)—  1,023  
HealthCare Royalty Partners II LP (a)(*)1,781  1,037  
RCGL PE MPA, LLC (g)(*)—  618  
RCG LPP2 PNW5 Co-Invest, L.P. (h)(*)—  296  
Cowen Healthcare Investments III LP1,398  —  
Difesa Partners, LP (o) (*)508  —  
Other private investment (m)(*)4,448  11,625  
Other affiliated funds (n)(*)2,446  3,088  
$114,504  $124,741  
* 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 22.
(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)Eclipse Ventures 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.
(c)Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days' notice.
(d)Lagunita Biosciences, LLC, is 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.
(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 investor's 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)RCG Longview Debt Fund V, L.P., RCG Longview II LP, RCG Park Liberty GP Member LLC, RCG Longview Equity Fund, LP, RCGL PE MPA, LLC and RCG Longview Debt Fund VI, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.
(h)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.
(i)Cowen Healthcare Investments II LP is a private equity fund.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights.
(j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.
(k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately-held nuclear services company. Distributions will be made when the underlying investment is liquidated.

(l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately-held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.
(m)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.
(n)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.
(o)Difesa Partners, LP permits semi annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.
(2)Carried interest
The Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model in other investments in the accompanying consolidated statements of financial condition (see Note 2v). Carried interest allocated to the Company from certain Portfolio Funds represents Cowen's general partner capital accounts from those funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds.
A portion of the Company's carried interest is granted to employees through profit sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company are recorded within compensation payable in the accompanying consolidated statements of financial condition. 
The carried interest as of December 31, 2019 and 2018, included the following:
As of December 31,
20192018
(dollars in thousands)
Cowen Healthcare Investments II LP (*)$23,759  $6,778  
Other private investment (a) (*)4,737  4,273  
RCG IO Renergys Sarl1,251  6,369  
Ramius Multi-Strategy Fund LP (*)613  575  
$30,360  $17,995  
(a)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.
* These carried interest balances are earned from affiliates of the Company.
(3)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 15% to 55%. The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC and 40% in Surf House Ocean Views Holdings, LLC (which is a joint venture in a real estate development project). The operating agreement that governs the management of day-to-day operations and affairs of these entities 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 these entities 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 investment funds and related managed accounts. During 2019, the Company completed the sale of its interests in RCG Longview Management, the management company for certain real estate investment funds in which the Company was invested, and various other real estate assets held by the Company for which an impairment charge was recognized at September 30, 2019.  The transactions resulted in the recognition of a $0.2 million loss for the year ended December 31, 2019.
During the third quarter of 2018, the Company completed an assessment of the recoverability of the Company's equity method investments and determined that the carrying value of the investment in Surf House Ocean View Holdings, LLC exceeded the estimated fair value of the Company's interest, which was other than temporary. Accordingly, an other than temporary impairment charge of $7.1 million was recognized to reduce the carrying value of the investment to fair value at December 31, 2018 and an additional other than temporary impairment charge of $2.6 million was recognized during the fourth quarter of 2019.
The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the cash flows. Any excess distributions would be considered as return of investments and classified in investing activities.
The following table summarizes equity method investments held by the Company:
As of December 31,
20192018
(dollars in thousands)
Surf House Ocean Views Holdings, LLC$7,804  $7,589  
Starboard Value LP24,292  12,699  
RCG Longview Debt Fund V Partners, LLC2,889  11,000  
RCG Longview Management, LLC583  1,167  
RCG Longview Debt Fund VI Partners LLC—  1,254  
HealthCare Royalty GP, LLC 108  149  
HealthCare Royalty GP II, LLC 302  176  
RCG Longview Debt Fund IV Management, LLC331  331  
HealthCare Royalty GP III, LLC 2,230  1,573  
RCG Kennedy House, LLC—  131  
RCG Longview Equity Management, LLC105  114  
RCG LPP II GP, LLC—  272  
RCG Park Liberty GP Member Manager, LLC—  1,248  
HCR Stafford Fund GP, LLC880  —  
Liberty Harbor North292  —  
Other1,042  968  
$40,858  $38,671  

The Company's income (loss) from equity method investments was $24.6 million, $6.4 million and $21.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in net gains (losses) on securities, derivatives and other investments on the accompanying consolidated statements of operations.
For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The clawback obligations for the real estate fund were $6.5 million at December 31, 2018, which is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. The liability was fully repaid in December 2019 (see Note 22 to the Company's consolidated financial statements).
Regulation S-X Rule 4-08(g)
For the period ended December 31, 2019, certain investments subject to Regulation S-X Rule 4-08(g) 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, 2019, 2018, and 2017, and such information is as follows:
As of December 31,
20192018
(dollars in thousands)
Assets$1,374,077  $1,189,669  
Liabilities205,873  244,088  
Equity$1,168,204  $945,581  
Year Ended December 31,
201920182017
(dollars in thousands) 
Revenues
$200,854  $105,499  $165,550  
Expenses(79,811) (67,893) (62,175) 
Net realized and unrealized gains (losses)221,616  95,855  133,695  
Income (loss) before income taxes342,659  133,461  237,070  
Income tax expense(2,234) (51) (99) 
Net income$340,425  $133,410  $236,971  
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 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 December 31, 2019 and 2018, securities sold, not yet purchased, at fair value consisted of the following:
As of December 31,
 20192018
 (dollars in thousands)
Common stock$425,448  $194,305  
Corporate bonds (a)5,933  750  
Government bonds (b)1,950  —  
Preferred stock3,686  199  
Warrants and rights14,819  53  
$451,836  $195,307  
(a)As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.
(b)As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.
Securities sold under agreements to repurchase and securities lending and borrowing transactions
The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of December 31, 2019 and 2018.
Gross amounts not offset on the Consolidated Statements 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, 2019
Securities borrowed$754,441  $—  $754,441  $—  $751,913  $—  $2,528  
Securities loaned1,601,866  —  1,601,866  —  1,585,036  —  16,830  
Securities sold under agreements to repurchase23,244  —  23,244  —  27,384  —  (4,140) 
As of December 31, 2018
Securities borrowed$407,795  $—  $407,795  $—  $383,593  $—  $24,202  
Securities loaned414,852  —  414,852  —  391,310  —  23,542  
(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.
        The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of December 31, 2019 and 2018:
Open and Overnight  Up to 30 days  31 - 90 days  Greater than 90 days  Total  
(dollars in thousands)
As of December 31, 2019
Securities loaned
    Common stock$1,343,478  $—  $—  $—  $1,343,478  
    Corporate bonds258,388  —  —  —  258,388  
Securities sold under agreements to repurchase—  —  23,244  —  23,244  
As of December 31, 2018
Securities loaned
    Common stock$414,852  $—  $—  $—  $414,852  
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 $6.1 billion and $617.5 million as of December 31, 2019 and $5.4 billion and $377.2 million as of December 31, 2018, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of December 31, 2019 was $241.2 million, and as of December 31, 2018 was $301.4 million, all of which is included in other investments, at fair value in the accompanying consolidated statements of financial condition. The exposure to loss primarily relates to the Consolidated Fund's investment in the Unconsolidated Master Fund and the Company's investment in unconsolidated investment companies. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of December 31, 2019 and 2018, was $261.7 million and $332.4 million, respectively.  The maximum exposure to loss often differs from the carrying value of exposure to loss of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain commitments and guarantees.
b. Consolidated Funds
Securities owned, at fair value
As of December 31, 2019 and 2018, securities owned, at fair value, held by the Consolidated Funds consisted of the following:
As of December 31,
 20192018
 (dollars in thousands)
     Preferred stock$4,393  $24,314  
     Common stock200,306  95,565  
     Government bonds (a) 161,607  38,377  
     Corporate bonds (b)3,405  24,098  
     Warrants and rights5,567  5,279  
$375,278  $187,633  
(a)As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%. As of December 31, 2018, maturities ranged from January 2019 to April 2019 and interest rates were 0%.
(b)As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%. As of December 31, 2018, maturities ranged from August 2020 to March 2026 and interest rates ranged from 5.88% to 7.63%.
Receivable on derivative contracts
As of December 31, 2019 and 2018, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of December 31,
20192018
(dollars in thousands)
Currency forwards$3,302  $186  
Equity swaps927  2,477  
Options1,604  1,753  
$5,833  $4,416  
Payable for derivative contracts
As of December 31, 2019 and 2018, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of December 31,
20192018
(dollars in thousands)
Currency forwards$88  $96  
Equity swaps3,931  713  
Options750  854  
$4,769  $1,663  
Other investments, at fair value
Investments in Portfolio Funds, at fair value
As of December 31, 2019 and 2018, investments in Portfolio Funds, at fair value, included the following:
As of December 31,
20192018
(dollars in thousands)
Investments of Enterprise LP$99,153  $97,656  
Investments of Merger Fund76,616  88,739  
$175,769  $186,395  
Consolidated portfolio fund investments of Enterprise LP 
On May 12, 2010, the Company announced its intention to close Enterprise Master. Enterprise LP operated under a "master-feeder" structure up until January 1, 2019, when Enterprise Master distributed its capital to each feeder and was liquidated. As of December 31, 2019, the consolidated investments in Portfolio Funds include Enterprise LP's investment in RCG Special Opportunities Fund, Ltd which is a portfolio fund that invests in a limited number of private equity investments
directly as well as through affiliated portfolio funds. As of December 31, 2018, the consolidated investments in Portfolio Funds included Enterprise LP's investment of $97.7 million in Enterprise Master. Prior to liquidation, 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. 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 Merger Master shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $76.6 million and $88.7 million in Merger Master as of December 31, 2019 and 2018, 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 market 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.
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 December 31, 2019 and 2018, 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 was one indirect concentration that exceeded 5% of the Company's equity as of December 31, 2019 and one at December 31, 2018.
Through its investments in a Consolidated Fund and combined with direct Company investments, the Company maintained exposure to a particular investment which accounted for 5% or more of the Company's equity.
Investment's percentage of the Company's stockholders' equity  
Issuer  Security Type  Country  Industry  Percentage of Stockholders' Equity  Market Value  
(dollars in thousands) 
As of December 31, 2019  Linkem  Equity  Italy  Wireless Broadband  8.94 %$72,404  
As of December 31, 2018Linkem  Equity  Italy  Wireless Broadband  8.36 %$66,439  
Underlying Investments of Unconsolidated Funds Held by Consolidated Funds
Enterprise Master and Merger Master
At December 31, 2018, Enterprise LP's investment in Enterprise Master represented 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 December 31, 2019 and 2018:
Securities owned by Enterprise Master, at fair value
As of December 31,
2018
 (dollars in thousands)
Common stock$469  
$469  
Portfolio Funds, owned by Enterprise Master, at fair value
  As of December 31, 2018
 Strategy(dollars in thousands)
RCG Special Opportunities Fund, Ltd*Multi-Strategy$111,548  
Other Private InvestmentsVarious846  
 $112,394  
* Affiliates of the Company.
Merger Master
As of December 31,
20192018
 (dollars in thousands)
Securities owned by Merger Master, at fair value
Common stock$76,531  $162,811  
Warrants and rights748  —  
Corporate bonds2,074  116,488  
$79,353  $279,299  
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock$29,623  $4,959  
Exchange traded funds38,527  4,651  
$68,150  $9,610  
Receivable on derivative contracts, at fair value, owned by Merger Master
As of December 31,
20192018
Description(dollars in thousands)
Options$2,047  $3,450  
Equity swaps406  5,320  
$2,453  $8,770  
Payable for derivative contracts, at fair value, owned by Merger Master
 As of December 31,
20192018
Description(dollars in thousands)
Options$1,158  $1,430  
Currency forwards—  270  
Equity swaps268  28  
$1,426  $1,728